RE:CIBC PreviewThis analyst seems massively focused on proving their point. It is rather unlikely that there will be continuous inflation that will never be caught up but what would ever happen if prices went down during a period.
If a company sells 100 units at $1 and makes $0.10 a unit or $10 is it better than one that sells the same 100 units at $1.20 a unit and makes $0.11 or $11. Over the long run PBH has issued shares, convertible bonds and buys companies at a lower multiple than what it trades at.
The analyst also hasnt been grocery shopping the last two years as prices continue to go up and people continue to buy food.
Unless all of North America converts to religions that don't eat beef or pork people are going to continue to eat beef and pork while paying what the sticker price is.