Hudson's Bay Co. HBAYF

HBC cut to market perform at BMO

[frankstevens17]

Globe says Hudson's Bay Co. cut to "market perform" 2017-12-11 09:06 ET - The Globe and Mail reports in its Saturday, Dec. 9, edition that BMO Nesbitt Burns analyst Wayne Hood, believing Hudson's Bay Co.'s real estate holdings alone will not be enough to hoist the stock higher over the next 12 months, lowered his rating to "market perform"from "outperform." The Globe's David Leeder writes that Mr. Hood says in a note: "We continue to see underlying value in HBC's owned real estate and recognize management's recent moves to unlock value and reposition floor space with strategic partnerships, but our confidence in our same-store sales/EBITDA forecasts in the company's operating segments is lower, as strategies to broadly accelerate SSS across banners and improve margin rate remains challenging, particularly at Lord & Taylor and Europe. In isolation, we don't believe the value of the real estate will be enough to move the stock higher in 12 months, absent sustained stabilization/improvement in the operating segments. ... Management's overall strategies to drive SSS remain largely unchanged. ... Finding the correct promotional and inventory balance has long been a challenge at HBC." Mr. Hood share target is $11. Analysts on average target the shares at $12.21.

[keepgoing67]

The spin-off of the REIT will not happen simply because HBC's poor operational performance. They will continue to sell of some assets to fund operations which is NOT a good idea just look at Sears/Sears Canada. HBC needs to close their entire European operations. The idea from the beginning was horrible because no one cares about the Canadian brand neither do these countries care for another

[seatleslim]

The RBC research is completely useless as can be seen by their historical calls in this name. It possibly does contribute to recent sentiment. He said buy with a target of 35 as recently as April 2017. No he says hold with an 11 target, essentially citing “retail”. this guy along with the others are the most “informed” followers of the company.   Exactly what any deep value stock looks like

[shooter1939]

seatleslim the majority of security analysts have picked a stock price high in the $13 range and although you may not agree with them that's about the peak for HBC during most of 2017, so I would say they made a fairly accurate forecast. Unless the real estate is liquidated and paid out in a special dividend my guess is the 2018 stock price high will be similar to 2017, so this stock is going