Analyst Stephen Macleod of BMO Capital maintained a Hold rating on Winpak Limited (WPK – Research Report), with a price target of C$52.00.
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Stephen Macleod has given his Hold rating due to a combination of factors including Winpak Limited’s recent financial performance and future growth expectations. The company’s Q4/24 results were largely in line with expectations, with revenue showing a year-over-year increase, though volume growth fell short of the forecast. Despite this, there is an anticipation of accelerated volume growth in 2025, driven by new customer acquisitions and capacity expansions.
However, Macleod notes that the stock is currently fairly valued given the company’s earnings growth outlook and potential risks such as tariff impositions. While there are possible catalysts like acquisitions and shareholder return activities, the uncertainties surrounding tariffs and the expiration of collective bargaining agreements in mid-2025 pose potential challenges. Therefore, the Hold rating reflects a balanced view of the company’s strengths, such as a strong balance sheet and robust free cash flow, against these risks.