Update shared on 13 Nov 2025
Fair value Increased 1.11%Analysts have modestly increased their fair value estimate for Loblaw Companies from $59.48 to $60.14 per share, citing share split adjustments as well as updated expectations for revenue growth and profitability.
Analyst Commentary
Bullish Takeaways- Bullish analysts maintain Outperform ratings for Loblaw, reflecting confidence in the company’s continued operational strength.
- Valuations were adjusted primarily to account for the recent 4-for-1 share split. This adjustment does not reflect any deterioration in business fundamentals.
- Expectations for revenue growth and sustained profitability remain intact. This underscores analysts’ belief in the company’s execution capabilities.
- Ongoing market share and efficiency improvements are credited for supporting positive long-term outlooks.
- Despite share split adjustments, price targets were notably lowered. This indicates some caution regarding upside potential in the near term.
- Bearish analysts highlight a heightened need for Loblaw to deliver on profitability amid evolving market dynamics.
- Potential headwinds such as competitive pressures and cost inflation are viewed as factors that could impact future valuation growth.
What's in the News
- No name mobile and Bell have expanded their prepaid mobile service to all Maxi store locations across Quebec, increasing affordable mobile plan access for Quebecers. (Key Developments)
- Loblaw and Uber Technologies announced a partnership, making Loblaw banner stores available for shopping via the Uber Eats app nationwide by November 12. (Key Developments)
- Loblaw, FortisBC, and partners launched the first sustained commercial demonstration of a hydrogen-powered Class 8 truck in British Columbia. This initiative aims to advance zero-emission heavy-duty trucking. (Key Developments)
- Gatik is expanding its autonomous trucking partnership with Loblaw. The company is deploying up to 50 autonomous trucks across the Greater Toronto Area by the end of 2026. (Key Developments)
- The claims process has begun for a $500 million national settlement involving Loblaw in class action lawsuits over alleged bread price fixing. Affected Canadians can claim compensation by December 12, 2025. (Key Developments)
Valuation Changes
- The Fair Value Estimate has increased slightly from CA$59.48 to CA$60.14 per share.
- The Discount Rate has risen marginally, moving from 6.33% to 6.47%.
- The Revenue Growth forecast has decreased, from 4.11% to 3.92%.
- The Net Profit Margin is up slightly, from 3.45% to 3.48%.
- The Future P/E Ratio has decreased modestly, from 34.09x to 33.62x.
Disclaimer
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