BMO Capital Markets Raises Premium Brands Price Target to C$111

Premium Brands Holdings Corp has received a boost in its stock price target from BMO Capital Markets, which updated its estimate from C$109.00 to C$111.00 in a research report released on November 7, 2023. This revision reflects a positive outlook for the specialty food manufacturer, which operates across Canada and parts of the United States.

Analysts Show Confidence in Premium Brands

Several other financial institutions have also weighed in on Premium Brands’ stock. National Bankshares raised its target price from C$99.00 to C$101.00, assigning a “sector perform” rating on August 7, 2023. TD Securities took a more bullish stance, increasing its target from C$140.00 to C$145.00 while recommending a “buy” rating on October 27, 2023.

In a similar move, Stifel Nicolaus adjusted its price objective from C$101.00 to C$106.00 on November 7, 2023, while CIBC raised its target from C$108.00 to C$115.00 on the same day. Canaccord Genuity Group also increased its target for the company from C$100.00 to C$118.00 earlier in the month.

Overall, the stock has garnered a consensus rating of “Buy” from analysts, with two giving it a “Strong Buy” rating, six recommending a “Buy,” and two opting for a “Hold.” According to data from MarketBeat, the average price target now stands at C$113.73.

Quarterly Earnings Report Highlights Challenges

Despite the optimistic projections from analysts, Premium Brands faced some challenges in its recent financial results. The company reported an earnings per share (EPS) of C($0.04) for the quarter ending November 10, 2023. The net margin was noted at 1.55%, with a return on equity of 5.66%. Revenue for the period reached C$1.99 billion.

Looking ahead, analysts expect Premium Brands to achieve an EPS of approximately 6.04 for the current fiscal year, indicating a cautious yet hopeful outlook for the company.

Founded in Canada, Premium Brands engages in specialty food manufacturing and premium food distribution, with operations across provinces such as British Columbia, Alberta, and Quebec, as well as in parts of the United States like Nevada and Washington State. The company’s diverse business segments include Specialty Foods, Premium Food Distribution, and Corporate operations.

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