Loblaw’s Price Investment Continues Amid Challenging Competition; Shares Fairly Valued
Loblaw reported retail (75% of sales) results that are tracking slightly weaker than our 1% same-store sales, or SSS, forecast for 2016, while trends in its Shoppers Drug Mart division (25%) are in line with our 4% SSS estimate for this year. We may slightly reduce our retail forecast for 2016 by around 0.5%, which will be offset by the time value of money, resulting in no more than a CAD 1 increase to our existing CAD 61 fair value estimate. We see shares of no-moat Loblaw as fairly valued.Sim...
Loblaw is a Canadian food distributor and provider of general merchandise, drugstore and financial products and services. Traditional food offerings remain at the core of Co.'s business. Co. operates conventional, superstore, and hard discount stores. Co. offers products through control label program with famous brands including President's Choice, no name and Joe Fresh Style. Co. also offers President's Choice Financial services and offers the PC points loyalty program.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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