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On Monday, BMO Capital Markets showed confidence in Metro Inc . (TSX:MRU:CN) (OTC: MTRAF), as analyst Tamy Chen increased the price target to Cdn$110.00, up from the previous Cdn$96.00, while reiterating an Outperform rating on the stock. Chen anticipates an uptick in earnings per share (EPS) growth for the company’s second fiscal quarter of 2025, which ended in mid-March, projecting a year-over-year increase of 11%.
Metro Inc., a Canadian food and pharmacy leader, is set to report its FQ2/25 earnings on April 16, 2025. Chen’s optimistic forecast is based on an expected quarter-over-quarter acceleration in food inflation and same-store sales (SSS) growth in the pharmacy’s front-of-store operations. The analyst’s outlook is set against a backdrop of increasing tariff rhetoric and policies, which may influence consumer behavior.
The report from BMO Capital suggests that despite the uncertainties presented by the current economic environment, investors are maintaining their interest in staple names within the Canadian market, including grocers like Metro Inc. The analyst’s revised price target reflects a belief in the company’s continued performance amidst these conditions.
Chen’s commentary highlights the funds flow, indicating that investors remain committed to several staple stocks, including Canadian grocers, during uncertain times. The positive outlook for Metro Inc. is also supported by the company’s potential to sustain EPS growth, which is a key factor for investors.
Metro Inc. is navigating an economic landscape marked by escalating tariff discussions, which could potentially affect consumer spending patterns. However, the raised price target from BMO Capital Markets signals a positive view of the company’s ability to adapt and grow, even as market conditions evolve.
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