Interactive Brokers shares jump as it secures spot in S&P 500
On Friday, BMO Capital Markets adjusted its outlook on Metro Inc . (TSX:MRU:CN) (OTC: MTRAF) shares, raising the price target to C$92.00 from the previous C$85.00. The firm maintained its Market Perform rating on the stock. The adjustment reflects an anticipation of the company's future performance and industry trends.
The analyst from BMO Capital provided insights into the decision, pointing out that the third-quarter dynamics observed in Loblaw Companies Limited were mostly specific to that company. It was noted that key industry trends, such as promotional penetration and consumer trading down, stayed relatively stable. These trends are expected to align with Metro's forecasts.
Metro Inc. is anticipated to present its financial outlook for fiscal year 2025. BMO Capital forecasts an 11% year-over-year increase in earnings per share (EPS) for Metro in fiscal year 2025, which is slightly above the consensus estimate of 10.8% and aligns closely with Metro's own medium-term target of an 8-10% compound annual growth rate (CAGR) in EPS.
The report highlighted a neutral stance on the grocery sector as a whole. However, when comparing Loblaw and Metro, BMO Capital expressed a slight preference for Metro over the next 12 months. This preference is based on the expectation that Metro is moving beyond the ramp-up phase of its distribution center (DC), which could potentially impact its performance positively.
The analyst concluded their comments by emphasizing the alignment of current industry trends with Metro's forecasts, suggesting that the company's strategic moves and market conditions might create a favorable environment for its stock performance in the coming year.
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