Scotia Cuts Empire (TSE:EMP.A) Price Target to C$48.00

Empire (TSE:EMP.A) had its price target decreased by Scotia from C$50.00 to C$48.00 in a report released on Friday,BayStreet reports. Scotia currently has a sector perform rating on the stock.

EMP.A has been the subject of a number of other reports. BMO Capital Markets upgraded Empire from a “market perform” rating to an “outperform” rating and set a C$58.00 target price for the company in a research note on Monday, July 20th. Canadian Imperial Bank of Commerce increased their price target on Empire from C$54.00 to C$58.00 and gave the stock an “outperformer” rating in a research report on Friday, June 19th. TD raised their price target on Empire from C$50.00 to C$53.00 and gave the stock a “hold” rating in a report on Friday, June 19th. Desjardins boosted their price objective on Empire from C$53.00 to C$56.00 and gave the company a “buy” rating in a research report on Sunday, June 21st. Finally, Royal Bank Of Canada upped their price objective on Empire from C$55.00 to C$58.00 and gave the stock a “sector perform” rating in a research note on Friday, June 19th. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of C$53.67.

Empire Price Performance

Shares of EMP.A opened at C$45.61 on Friday. The company has a market capitalization of C$10.20 billion, a price-to-earnings ratio of 53.03, a price-to-earnings-growth ratio of 16.20 and a beta of -0.29. Empire has a fifty-two week low of C$43.81 and a fifty-two week high of C$52.64. The firm has a 50-day simple moving average of C$49.03 and a 200-day simple moving average of C$48.76. The company has a debt-to-equity ratio of 135.51, a quick ratio of 0.29 and a current ratio of 0.79.

Empire (TSE:EMP.A) last posted its quarterly earnings results on Thursday, September 10th. The company reported C$1.04 EPS for the quarter. Empire had a net margin of 2.18% and a return on equity of 12.94%. The business had revenue of C$8.47 billion during the quarter. On average, equities research analysts anticipate that Empire will post 2.9581227 earnings per share for the current year.

Empire Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 31st were given a dividend of $0.2425 per share. This is a boost from Empire’s previous quarterly dividend of $0.22. The ex-dividend date was Wednesday, July 15th. This represents a $0.97 dividend on an annualized basis and a yield of 2.1%. Empire’s payout ratio is presently 102.33%.

Empire News Roundup

Here are the key news stories impacting Empire this week:

• Positive Sentiment: Empire reported first-quarter earnings of C$1.04 per share and revenue of approximately C$8.47 billion. Sales and profit increased as the company added locations and emphasized discount-focused offerings, supporting the stock’s long-term growth case. Empire reports higher sales and profit as it adds locations, focuses on discount
• Positive Sentiment: Desjardins maintained a “buy” rating, although it reduced its price target from C$57 to C$53. National Bank Financial’s revised C$54 target and TD’s C$52 target also remain above the current share price, indicating analysts continue to see potential appreciation.
• Neutral Sentiment: Empire’s quarterly revenue was below the FactSet consensus of C$8.54 billion, coming in at C$8.47 billion. The modest miss may limit the positive impact of the earnings beat and stronger sales narrative. Empire first-quarter revenue report
• Negative Sentiment: TD cut its target to C$52 from C$53 and downgraded its stance to “hold.” National Bank Financial lowered its target to C$54 from C$56 and assigned a “sector perform” rating, while Scotia reduced its target to C$48 from C$50.
• Negative Sentiment: The broad target-price reductions—particularly Scotia’s limited implied upside—signal that analysts see fewer near-term catalysts following the results. This cautious reassessment is likely the main reason EMP.A has decreased despite reporting higher quarterly earnings and sales.

About Empire

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc, and related real estate. With approximately $32 billion in annual sales and $17 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 130,000 people. Additional financial information relating to Empire, including the Company’s Annual Information Form, can be found on the Company’s website at www.empireco.ca or on SEDAR+ at www.sedarplus.ca.