Premium Brands (PBH) has received a new Buy rating, initiated by BMO Capital analyst, Stephen Macleod.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Stephen Macleod has given his Buy rating due to a combination of factors that highlight Premium Brands’ strategic financial maneuvers and growth potential. The company has successfully completed a $150 million convertible debenture offering, which will be used to reduce its revolving credit facility and provide flexibility for future financial obligations. This move is expected to maintain a stable debt-to-EBITDA ratio, reflecting sound financial management.
Additionally, Macleod anticipates positive growth trends for Premium Brands, driven by strong organic sales growth in both Specialty Foods and Premium Food Distribution segments. Despite some near-term risks such as tariff impacts, the company’s robust U.S. sales pipeline and potential benefits from currency fluctuations position it well for future expansion. These factors, combined with a long-term outlook for acquisition growth, underpin the Buy rating with a target price of $94.
PBH’s price has also changed moderately for the past six months – from C$94.650 to C$76.410, which is a -19.27% drop .