Premium Brands at New All-Time Highs After TD Upgrade to Buy
(Bloomberg) -- Premium Brands Holdings rose for second day, up as much as 5.8% and setting a fresh record after TD Securities raised rating to buy from hold on "stronger underlying earnings trends" across all businesses and quality execution. Analyst Derek Lessard also boosted the PT to Street-high C$122 from C$92.
- TD "confident" that PBH on pace to exceed both sales and margin guidance; expects PBH to need to build/acquire more capacity over next two years
- Notes AZ sandwich plant production ~6 quarters ahead of TD’s estimate; Specialty Foods organic revenue growth is exceeding mgmt target and expanding gross margins
- Premium Food Distribution sales "poised to accelerate" in 2H
- Raises annual Ebitda estimates by 6-8.5%, boosts valuation range to 14x-15x Ebitda based on improving sales and margin trends, 2Q beat
- PBH CN has 4 buys, 4 holds, 0 sells, avg PT C$105: Bloomberg data
- PBH CN +45% YTD vs S&P/TSX Capped Consumer Staples Sector Index (SPTSCS) +3%
- PBH CN best-performing stock in SPTSCS today and YTD
To contact the reporter on this story: Kailey Leinz in New York at kleinz1@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Brad Olesen
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers PBH CN (Premium Brands Holdings Corp)
People Derek Lessard (Toronto-Dominion Bank/The)
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