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On Tuesday, CLSA analysts upgraded Puregold Price Club Inc. (PGOLD:PM) stock from Hold to Outperform, citing the company’s strong first-quarter performance. The analysts also raised the price target to PHP44.00 from PHP29.00, reflecting confidence in the company’s growth prospects.
Puregold reported a net income of PHP2.6 billion for the first quarter of 2025, marking a 6.5% increase year-over-year. This result was in line with market expectations. The company’s consolidated revenue grew by 11% compared to the previous year, driven by a same-store sales growth (SSSG) of 5.3%. The increase in sales was attributed to larger basket sizes and a 7% expansion in net selling area.
The analysts expect Puregold’s top-line momentum to continue as the company plans to open more stores. They noted that Puregold’s SSSG has outperformed the food groups of SM Retail and RRHI for three consecutive quarters. Additionally, Puregold declared a special dividend, raising its payout ratio to 50% from the previous policy of 30%.
CLSA analysts have also increased their earnings estimates for Puregold by 5.4% for 2025 and 6.0% for 2026. They raised the target price-to-earnings ratio to 10 times from 7 times, reflecting the company’s improved outlook and growth potential.
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