Friday’s analyst upgrades and downgrades

Friday’s analyst upgrades and downgrades DAVID LEEDER PUBLISHED 19 MINUTES AGO UPDATED 5 MINUTES AGO COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Inside the Market’s roundup of some of today’s key analyst actions While Empire Co. Ltd. (EMP-A-T -3.13% decrease ) reported first-quarter fiscal 2027 earnings that fell in-line with the Street’s expectations, National Bank Financial analyst Vishal Shreedhar warns the “underlying trends were mixed.” “EMP gained market share in conventional and maintained position in discount; price perception for EMP improved amid continued search for value by customers,” he said in a client note. “EMP may accelerate square footage growth beyond F2027 as it aims to gain market share in discount (the fastest-growing grocery space), which we view positively The impact related to the tariff dispute with the U.S. is nascent, although Empire does not anticipate significant pressure at this stage.” On Thursday, the Stellarton, N.S.-based retailer, which owns chains including Sobeys, Safeway, IGA, Farm Boy and discounter FreshCo, reported earnings per share of $1.04, matching the projections of both Mr. Shreedhar and the Street and a gain of 13 cents from the same period a year ago. However, he estimates core EPS was flattish year-over-year after excluding several items, including pension gains of 7 cents and improvements of 6 cents from the adjustments to its Voilà e-commerce business. Empire yet to see Buy-Canadian sentiment show up on bottom line Food same-store sales growth of 1.2 per cent was a decline of 0.7 per cent from the same period in fiscal 2026 and missed the analyst’s 1.5-per-cent estimate. “EMP indicated F2027E EPS to be at the high end of its 8-11-per-cent growth target (NBCCM is 11 per cent; the equity interest in Genstar was disposed for a gain of $4-million),” said Mr. Shreedhar. “Greater than 25 new stores are now expected (from more than 20; approximately 2-per-cent square footage growth, including Mayrand acquisition), while new stores are meeting/exceeding expectations.” In response to the quarterly release, Mr. Shreedhar trimmed his 2027 and 2028 EPS forecasts to $3.61 and $3.89, respectively, from $3.64 and $3.99. Keeping a “sector perform” rating for Empire shares, he reduced his target to $54 from $56. The average target on the Street is $55.57. “We remain on the sidelines as we evaluate EMP’s ability to…