RE:RE:downgraded ! * Trimming his estimates due to the impact of inflation, National Bank Financial’s Ryan Li cut his Lassonde Industries Inc. (LAS.A-T) target by $1 to $169 with an “outperform” rating, while Desjardins’ Frederic Tremblay lowered his target to $155 from $170 with a “hold” rating. The average is $162.
“In the near term, we anticipate continued challenges with rising input costs (orange/apple juice concentrate, PET) and higher freight/transportation expenses; however, benefits from pricing initiatives (full run rate of past price increases plus additional actions) and eventual benefits from Project Eagle are anticipated to increasingly aid margins through the remainder of 2022,” he said. “We believe that Lassonde is a mature and historically well-managed company, with potential to grow through continued organic vectors (market share gains) and future acquisitions (over the medium-to-long term).”