
TSE:WN
This summary was created by AI, based on 4 opinions in the last 12 months.
George Weston Ltd. (WN-T) has received mixed reviews from experts. Some analysts view it as a stable investment, suitable for those looking to reduce volatility in their portfolios, suggesting a potential upside as the company expands its market presence, particularly through its ownership stake in Loblaw. Others consider it defensive but caution that while it may not yield high returns, it serves as a buffer against market instability. Concerns have been raised regarding negative publicity related to pricing, which could damage brand trust, and there have been discussions around a holding company discount affecting the valuation due to the complexities involved in the holding structure. Overall, experts are cautious about fluctuations but see potential due to George Weston’s hard assets and established market share.
WN vs. L A bit like splitting hairs. Weston controls Loblaw. When you buy Weston, you get 95% Loblaw and 5% bakery. A great business. A buy and hold through the cycles. If you get a rip roaring cyclical market, it will probably lag. High single digit or low double digit return. He doesn't like the bakery, so Loblaw gets the nod.
One of the few companies with good newss--people are cleaning out the shelves at Loblaw (and other supermarkets). Shoppers will stay open early for seniors. During worry about the Choice REIT not getting its rent from Loblaw. After a few years of turning around, Weston is improving and coming out with better sales. (Analysts’ price target is $124.00)
(A Top Pick Aug 22/18, Up 10%) They also have the bakery side of the business where they have invested a lot into the business. A lot of it depends on L-T plus exposure to CHP.UN-T. He would highly recommend it at $100. They are the dominant player in the Canadian grocery business.
They just bought Choice Properties reit from Loblaw in a complicated deal. This creates a lot of cash flow that will likely go towards M&A. He suspects WN will invest in healthcare to synergize with the supermarkets. The bakeries, though, make up only 6% of the business and he's not thrilled by them.
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.