BMO Capital analyst Stephen Macleod maintained a Hold rating on Winpak Limited (WPK – Research Report) yesterday and set a price target of C$52.00.
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Stephen Macleod’s rating is based on a combination of factors that reflect the current and projected performance of Winpak Limited. The company’s Q1/25 results were generally in line with expectations, with revenue showing year-over-year growth despite volumes being slightly below forecast. While the EBITDA margin met expectations, the earnings per share fell short of consensus due to lower interest income and a higher tax rate.
Looking ahead, volume growth is anticipated to accelerate, supported by new customer acquisitions and capacity expansions. However, despite these positive indicators, the stock is considered reasonably valued given the earnings growth outlook. The company’s strong balance sheet and free cash flow generation are positive, but without a significant catalyst, the stock is rated as a Hold. Additionally, while direct tariff impacts are manageable, indirect demand impacts remain unpredictable, adding a layer of uncertainty to the stock’s future performance.
Macleod covers the Consumer Cyclical sector, focusing on stocks such as Aritzia, CCL Industries, and Gildan Activewear. According to TipRanks, Macleod has an average return of 9.1% and a 55.76% success rate on recommended stocks.