Analyst Robert Dickerson from Jefferies maintained a Buy rating on Saputo Inc. and increased the price target to C$34.00 from C$32.00.
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Robert Dickerson has given his Buy rating due to a combination of factors that indicate a positive outlook for Saputo Inc. The U.S. market data shows that retail demand for milk and cheese is stable, and there has been an improvement in foodservice foot traffic trends. Additionally, the spread between cheese and milk prices has improved compared to the previous quarter, suggesting stronger profitability for the first quarter, despite remaining unfavorable overall.
With stable topline trends, improving input cost dynamics, and a cost savings plan in place, there is potential for margin and free cash flow improvements in the future. These factors contribute to a positive assessment of Saputo Inc.’s financial prospects, leading to the reaffirmation of a Buy rating.