Update shared on 22 Nov 2025
Fair value Increased 6.93%Analysts have increased their price target for Saputo, raising expectations from approximately C$35.41 to C$37.86. This revision is based on higher projected revenue growth and profit margins, as reflected in recent updates to their financial models.
Analyst Commentary
Bullish Takeaways- Bullish analysts have raised their price targets for Saputo, reflecting growing confidence in the company's performance and valuation.
- There is strong optimism regarding Saputo's potential for ongoing revenue growth, supported by updates to financial projections.
- Profit margin improvements have contributed to a more favorable outlook, suggesting enhanced operational execution.
- The Outperform ratings maintained by analysts indicate expectations for Saputo to surpass broader market returns over the next twelve months.
- Some caution remains about the sustainability of recent margin gains, with questions about the impact of rising input costs.
- Bearish analysts are watching for execution risks, particularly as Saputo implements growth strategies in a competitive industry.
- The elevated valuation could face pressure if top-line growth does not materialize as quickly as projected.
What's in the News
- The Board of Directors has authorized a new share buyback plan, allowing Saputo to repurchase up to 5% of its issued share capital by November 2026 (Key Developments).
- Saputo announced a share repurchase program as part of its capital allocation strategy, which balances expenditures, dividends, and debt reduction (Key Developments).
- Between July and September 2025, the company completed the repurchase of nearly 15 million shares, totaling CAD 398.36 million, as part of a previously announced buyback (Key Developments).
- Saputo was newly added to the FTSE All-World Index, highlighting increased recognition in global equity benchmarks (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from CA$35.41 to CA$37.86, reflecting a modest upward revision.
- Discount Rate has risen slightly from 5.97% to 6.12%. This indicates analysts are incorporating a marginally higher risk premium.
- Revenue Growth projections have improved, moving from 2.65% to 3.15% annually.
- Net Profit Margin estimates are now slightly higher at 4.28% compared to the previous 4.17%.
- Future P/E ratio has increased moderately from 18.47x to 18.90x. This signals expectations of higher earnings multiples.
Disclaimer
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