Desjardins: Canadian Tire Is a Solid Investment

Canadian Tire (CDNTF.PK) is a solid investment in faltering times, according to analyst Keith Howlett of Desjardins Securities, and should continue to perform well even if consumer spending weakens on this side of the border as it has in the U.S.

The analyst maintained his buy rating on the stock and target price of C$80.

In a note to clients Mr. Howlett wrote:

Canadian Tire’s business has proven relatively resilient on most economic conditions, short of a grinding 1990s-style recession.

However, he noted the retailer is now more sensitive to economic vagaries than it was in the recessionary period of the early 1990s, given the more recent acquisition of clothier Mark’s Work Wearhouse and the chain’s expansion of housewares and home décor.

"Canadian Tire remains our preferred choice among discretionary retailers," he said.