Richelieu Hardware downgraded to Sector Perform from Outperform at National Bank

National Bank downgraded Richelieu Hardware to Sector Perform from Outperform with a price target of C$45.50, down from C$47.50. The company’s Q4 results saw continued pressure on gross margins, though the drag from higher-cost product should subside in the coming quarters as the company finishes working through excess pandemic-related inventory, the analyst tells investors in a research note. The firm further cites the management revising its EBITDA margin guidance downwards again to 12%-13% for FY24, on the assumption of flat-to-slightly negative volumes weighing on operating leverage in the first half of the year.