RE:RE:RE:downgraded ! * National Bank’s Ryan Li cut his target for Lassonde Industries Inc. (LAS.A-T) to $135, above the $130 average, from $138 with an “outperform” rating, while Desjardins Securities’ Frederic Trremblay lowered his target to $125 from $140 with a “hold” rating.
“While we were pleased with continued top-line momentum in 3Q (heavily supported by pricing actions), our enthusiasm remains tempered by margin weakness caused by inflation and chronic underperformance from the U.S. business,” said Mr. Li. “With beverage retail prices unlikely to soar forever, we believe patience will be required as Lassonde’s margin recovery will rely heavily on its multi-year Project Eagle in the U.S.. Near-term challenges and execution risk keep us on the sidelines despite LAS.A’s low valuation multiple.”