Canaccord Capital lowers the target price on Canadian Tire Corp. Ltd.(CTC-A:TSX) to $208

STA Research
by: STA Research

Canaccord Capital maintains Canadian Tire Corp. Ltd. with an Outperform rating and lowers the target price to $208 from $222 on the company’s stock.

Based on the Canadian Tire Corporation Limited stock forecasts from 13 analysts, the average analyst target price for Canadian Tire Corporation Limited is CAD 225.11 over the next 12 months. Canadian Tire Corporation Limited’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Canadian Tire Corporation Limited is Neutral, which is based on 4 positive signals and 4 negative signals. At the last closing, Canadian Tire Corporation Limited’s stock price was CAD 174.54Canadian Tire Corporation Limited’s stock price has changed by +0.44% over the past week, -8.68% over the past month and -9.30% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

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