Stock price when the opinion was issued
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Have been a good place to hide out in the recent market. EPS is growing by 15% for the next two years. Good for a staples company. Debt is high but not unusual for hte company. Repurchasing shares. Looks fine here. Unlock Premium - Try 5i Free
Likes it for primarily being Loblaws and Choice Properties which has a solid tenant base including Shoppers Drug Mart. Has reasonable growth prospects. The only caveat is politicians complaining about high food prices, but it doesn't bother him. The grocers face costs pressures from energy costs and higher wages.
(Analysts’ price target is $189.86)
Grocery business in Canada has become much, much more competitive with Wal-Mart (WMT-N) coming in. This is an area where everybody is manoeuvring for position, and it is going to be hard to keep margins up.