iA Capital IA Capital Markets analyst Chelsea Stellick cut her Neighbourly Pharmacy Inc. to $38 from $40, keeping a “buy” rating. The average is $33.22.
“Following a fourth quarter in line with expectations, NBLY approaches Q1/F23 reporting feeling the effects of a tight labour market but also benefiting from a normalizing retail and prescription environment,” she said. “We are keeping an increasingly close eye on the Company’s human capital as a short-term headwind on margins, this is providing an opportunistic entry point in the stock without changing NBLY’s intrinsic value as costs will eventually flow through to consumers. We believe Neighbourly’s successful M&A strategy and operational excellence will overcome this temporary challenge and position it to capture market share as the Company’s highly scalable platform expands its network. We maintain our Buy recommendation and based on a reduced anticipated percentage growth rate following the large Rubicon acquisition update our target price.”