On Monday, BMO Capital Markets updated its outlook on High Liner Foods Inc. (HLF:CN) (OTC: HLNFF), increasing the shares target to C$14.50 from the previous C$14.00.
The firm maintained its Market Perform rating on the stock. This adjustment follows High Liner's third-quarter earnings, which surpassed expectations, and the company's confirmation of its 2024 forecast for year-over-year EBITDA growth.
In the third quarter of 2024, High Liner Foods experienced an 8% year-over-year rise in EBITDA. This increase was attributed to an expansion in gross margin and reduced expenses, which helped offset a decrease in revenue.
Despite ongoing consumer pressures that affected demand across foodservice and resulted in declining retail volumes amid intense competition, the company managed to report strong quarterly results.
High Liner's strategy has been to concentrate on profitability, and the company's performance to date in the year supports its ability to meet its projected EBITDA growth for 2024. The company's steadfast focus on maintaining profitability, despite the challenging market conditions, has been a key factor in its solid performance.
The analyst from BMO Capital Markets noted High Liner's robust year-to-date results and its commitment to achieving its 2024 outlook. The firm's decision to raise the price target to C$14.50 reflects confidence in High Liner's ability to continue delivering on its financial targets.
High Liner Foods' emphasis on profitability, even amidst a competitive and pressured market environment, has placed the company in a favorable position to uphold its 2024 EBITDA growth expectation. The company's recent performance and its outlook for the coming year remain a central focus for analysts and investors monitoring its progress.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.