Saputo Inc. Buy Rating: Growth Potential Amid Margin Challenges and Market Volatility

In a report released today, Robert Dickerson from Jefferies maintained a Buy rating on Saputo Inc. (SAP – Research Report), with a price target of C$32.00.

Robert Dickerson has given his Buy rating due to a combination of factors influencing Saputo Inc.’s performance. Despite missing the consensus EBITDA estimates by approximately 2%, primarily due to slower-than-expected margin recovery in Europe and increased production costs from Argentina’s currency devaluation, there are positive aspects to consider.
Higher pricing in export markets and increased volumes in Canada have positively impacted net sales. Although the U.S. food service segment faced challenges and the cheese-milk spread dynamics remain unfavorable, the segment’s EBITDA exceeded expectations by about 1%. While tariff impacts were limited, some volatility in the U.S. dairy market is anticipated in the near term. These elements combined suggest potential for growth, justifying the Buy rating.

In another report released on May 28, RBC Capital also reiterated a Buy rating on the stock with a C$35.00 price target.