Research Alert: CFRA Maintains Hold Opinion On Shares Of Saputo Inc.
04:15 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target by C$6 to C$41, 20.1x our FY 22 (Mar.) EPS estimate of C$2.04 (from C$1.99) and near SAP's historical average. We lift our FY 21 EPS estimate to C$1.82 from C$1.79. SAP posts F3Q (Dec-Q) adj-EPS of C$0.55 vs. C$0.56, above the C$0.47 consensus. Sales fell 3.3%, driven by weakness in the U.S. segment where SAP is over indexed to the foodservice channel. However, in terms of sales volumes, SAP reached similar levels versus last year, a sign that SAP is adapting well and capturing new opportunities. SAP is also managing costs well as adj-EBITDA increased 3.4% and adj-EBITDA margins expanded 80 bps to 11.5%. We expect SAP's recovery to be bumpy given the recent volatility in the commodity markets but are positive on SAP being able to capture new long-term growth opportunities. For example, SAP has begun to roll out almond and oat beverage products and is currently trialing dairy alternative cheese products to use in pizza (very small category today but has strong potential).