Shoppers Drug Mart: Analysts Bullish

| About: Shoppers Drug (SHDMF)

At Shoppers Drug Mart Corp. (OTCPK:SHDMF), the benefit of a calendar Easter shift might have been tempered by aggressive sales in the second quarter, but the retailer is still the best positioned to succeed as prescriptions rise among aging baby boomers.

That’s the view of Desjardins Securities analyst Keith Howlett, who rates the shares a Buy and has raised his target to C$52 from C$48.

With an 18% share of retail prescriptions in a drug market that continues to grow at over 5% per year, Shoppers is increasing its market share in a growing pharmacy market, Mr. Howlett said.

“Shoppers is the only drugstore chain in Canada with a rapidly growing national platform,” the analyst wrote in a note to clients.

Vishal Shreedhar of UBS Investment Research believes Shoppers will continue to deliver good results but said trends are slowing due to the weak economy.

“Economic recovery is key for higher returns and accelerating growth,” he wrote in a note to clients.

His Buy rating remained unchanged, as did his target price of C$54.