Stephen Macleod, an analyst from BMO Capital, maintained the Buy rating on North West (NWC – Research Report). The associated price target was raised to C$60.00.
Stephen Macleod has given his Buy rating due to a combination of factors including North West’s strong financial performance in Q4/24, where both adjusted EBITDA and EPS exceeded market expectations. The company’s sales growth, particularly in same-store sales growth (SSSG), was notably higher than anticipated, driven by settlement payments and community-support programs that are expected to continue providing positive momentum.
Additionally, the outlook for North West remains favorable with ongoing Water Settlement payments and anticipated First Nations Child and Family Services settlements, which are expected to boost consumer demand in Northern Canada. The company’s strategic initiatives, such as the Next 100 program, are also contributing to earnings growth and are projected to continue doing so through 2025. Despite some macroeconomic uncertainties, the overall constructive outlook and the company’s presence in defensive markets like Northern Canada and Alaska support the Buy rating.
According to TipRanks, Macleod is a 5-star analyst with an average return of 8.2% and a 53.66% success rate. Macleod covers the Consumer Cyclical sector, focusing on stocks such as Aritzia, CCL Industries, and Gildan Activewear.