Hudson's Bay Co. HBAYF

TDW throws in the towel Massive downgrade

[MrBigger]

TD Investment Conclusion Our investment thesis on HBC has been that despite no catalysts to drive the share price in the immediate term, the attractive real-estate portfolio should provide downside protection to the share price until such time that capital investments lead to improving Retail results in F2017. With a further decline in the Retail outlook and the challenging environment looking increasingly likely to continue, we do not see a catalyst for investors to ascribe value to HBC's real-estate portfolio in full over the next 12 months — specifically, its key Saks Flagship. With a carrying value of $12.00 per share in our NAV, this accounts for the majority of our reduced target price.

Target cut to $13 from $26 and downgraded to hold.