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Investing.com - BMO Capital raised its price target on Empire Company (TSX:EMP.A) (OTC:EMLAF) to C$55.00 from C$53.00 on Thursday, while maintaining a Market Perform rating on the Canadian grocery retailer.
The price target increase follows Empire’s fourth-quarter fiscal 2025 results, which showed another quarter of sequential strengthening behavior among shoppers. BMO noted the company delivered better selling, general and administrative expense (SG&A) results than historical trends.
Despite the positive quarter, BMO expressed caution about assuming further sequential acceleration in same-store sales (SSS). The firm cited concerns about the second half of fiscal 2026, when Empire will face stronger comparable sales figures from the previous year.
BMO remains comfortable with its continued assumption for annual gross margin expansion of 20 basis points for Empire. The firm highlighted that consistent SG&A performance remains a key component to drive the consistent 8-11% earnings per share growth that Empire targets.
For fiscal 2026, BMO still assumes a higher SG&A rate than what Empire reported in the fourth quarter of fiscal 2025, indicating some conservatism in the firm’s outlook despite the price target increase.
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