Opinions
Brooke Thackray
George Weston Ltd.
WN-T
HOLD
Mar 01, 2021
$94.340
Stock price when the opinion was issued
food processing
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PAST TOP PICK
(A Top Pick Mar 17/20, Up 5%) About 64% of its NAV is in Loblaw, and the grocers have done well in the pandemic, but they also invested a lot in home delivery and safety, so that has limited gains. Over 30% of WN is Choice Properties, and that's been steady. Weston Foods segment should pick up again and do very well. Definitely buy and hold.
food processing
BUY
It's had a good run. Was his top pick in March 2020. IN recent quarters, they've been simplying their structure. What's held their valuation was Weston Foods, which they are divesting. So, the company will focus on Loblaw and Choice Properties. Higher costs have impacted the former during the pandemic. But investments in home delivery have done well. He likes consumer staples now.
food processing
BUY
Interesting at these levels. They mostly own Loblaw, which is doing very well. Weston just sold their bakery business. Weston is effectively a holding company for the Weston family. Owning either Loblaw or Weston is good, and Weston is trading around 13x earnings and pays a 2% dividend. He owns no food stocks--it's always been a difficult business.
food processing
BUY
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
food processing
TOP PICK
Low risk. WN owns the Loblaw and Shoppers Drug Mart real estate and accounts for half their earnings. A dull and boring consumer staples business. Trades at a 12% discount to its holdings in Loblaw and Choice REIT. They just raised their dividend by 10% today, though it isn't huge. They just sold their baked-goods business and sit on $3.1 billion. The family will buy a lot more shares in coming years. A well-run company. He sees a 10% rise in the share price. (Analysts’ price target is $170.38)
food processing
TOP PICK
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)
food processing
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WN-T vs. L-T This sector is just not loved right now. Investors just aren't looking at these kinds of stocks right now. Their costs have been moving up but people aren't eating more. Their sweet spot is late April until late May. L-T could be okay so he would hold on to it.