Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com - BMO Capital has raised its price target on Canadian Tire Corp Ltd (TSX:CTCa). (TSX:CTC/A) (OTC:CDNAF) to C$191.00 from C$175.00 on Tuesday.
The price target increase reflects BMO’s revised earnings per share estimate for Q2 2025 to C$3.61 from C$3.53, primarily due to a faster pace of share repurchases by the company.
BMO maintains its Canadian Tire Retail same-store sales growth forecast at 1.5%, though it noted there may be potential upside given the weak year-ago comparison period. The current Street consensus for same-store sales growth stands at 2.5%.
The firm still expects some year-over-year gross margin contraction for Canadian Tire due to higher freight costs, but has slightly revised its Q2 2025 margin expectations higher due to a potentially favorable sales mix.
The new price target implies a retail segment multiple of approximately 6x in BMO’s sum-of-the-parts valuation, up from the previous 5.6x multiple.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.