Canadian Tire gains after BMO Capital calls out attractive entry point
Feb. 01, 2023 10:16 AM ETCanadian Tire Corporation, Limited (CTC.A:CA), CDNAFCDNTFBy: Clark Schultz, SA News Editor1 Comment
Canadian Tire (CTC.A:CA) traded higher on Wednesday after BMO Capital stepped in with an upgrade on the retailer to an Outperform rating from Market Perform. The firm has the view the stock will outperform in 2023.
Analyst Peter Sklar and team think cost-of-living inflation and rising interest rates are already well-priced into the stock, but could soon be easing.
"At the current stock price, the implied value for Canadian Tire Retail is 4x forward EBITDA, below the low end of the historical range (4.5-6.5x), and provides an attractive entry point for this well-managed discretionary retailer."
The firm assigned a price target of C$181. Shares of Canadian Tire broke 1.37% higher in early trading to C$160.36.