High Liner Foods, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Nevan Yochim from BMO Capital upgraded the rating on the stock to a Buy and gave it a C$20.50 price target.
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Nevan Yochim has given his Buy rating due to a combination of factors that suggest a positive outlook for High Liner Foods. The company is transitioning from pandemic-related revenue declines to a phase of growth, which is expected to enhance stock performance. Despite some margin pressures anticipated in the latter half of 2025, the acquisition of Mrs. Paul’s and Van de Kamp’s brands is projected to drive EBITDA growth from 2026 onwards, as synergies are realized.
Additionally, High Liner Foods has demonstrated operational improvements, such as inventory optimization and exiting unprofitable segments, which have contributed to an increase in adjusted EBITDA margins. The company’s strong financial position, with a manageable debt-to-EBITDA ratio and a robust free cash flow yield, supports further growth investments and shareholder returns. The stock’s valuation remains attractive, trading at a reasonable multiple, and the company’s strategic initiatives are expected to bolster its leadership in the North American seafood market.
In another report released on September 4, Canaccord Genuity also maintained a Buy rating on the stock with a C$20.00 price target.