Loblaw Downgraded to Buy After 30% Run

Analysts at TD Securities downgrade Loblaw (OTC: LBLCF) from "action list buy" to "buy." The target price for LBLCF is set to $51.

TD Securities says, “Year to date, Loblaw has been the best performing stock in our coverage universe by a wide margin – i.e., the share price is up almost 30% since we upgraded on January 20th and up more than 7% since reporting Q2 consensus beating results on July 22. However, this strong performance also means that there is now less of a buffer in the event of temporary IT integration challenges and/or labour strife, both of which are possible in the coming quarters.”

“As a result, we have found it increasingly difficult to pound the table as the price continues to hit new 52-week highs….That said, should the stock pull back meaningfully on these or other temporary events, it could provide a more attractive entry point and an opportunity to upgrade our recommendation again,” the analysts add.

More Analyst Ratings here