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Investing.com - BMO Capital has lowered its price target on North West Co Inc. (TSX:NWC) (OTC:NNWWF) to C$57.00 from C$59.00 while maintaining an Outperform rating on the stock.
The price target reduction follows North West Co’s Q2/25 results, which BMO described as "in line" with expectations, though the stock sold off by 5% due to several near-term headwinds. These challenges include wildfires, lower FNCFS program funding, ICFI changes, and flat year-over-year Water Settlement payments in Q3.
Despite these short-term pressures, BMO Capital remains optimistic about the company’s longer-term outlook, citing expected FNCFS settlement payments that should lead to accelerated same-store sales growth through 2026.
The research firm also highlighted that community-support spending programs are expected to provide longer-term demand tailwinds for North West Co.
BMO noted that the company’s "Next 100" initiative contributed to Q2 earnings, with incremental EBIT expected to ramp up through 2025 and 2026 before achieving full run-rate in 2027.
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