UPDATE: Desjardins Capital Markets Downgrades Tim Hortons to Hold, Raises PT on Mixed Factors

In a report published Thursday, Desjardins Capital Markets analyst Keith Howlett downgraded the rating on Tim Hortons THI from Buy to Hold, but raised the price target from C$53.00 to C$57.00. In the report, Howlett noted, “Tim Hortons had a poor 1Q, with operating EPS of C$0.61, below consensus of C$0.62, due to same‐store sales declines of 0.3% in Canada and 0.5% in the US. The bigger news, in our view, is that management is actively reviewing the capital structure to optimize shareholder value, and that a new CEO has been appointed effective July 2, 2013. The company continues to review how to accelerate US and international expansion. Based on share price appreciation, our rating is now Hold–Average Risk (from Buy) with a C$57 target (up from C$53).” Tim Hortons closed on Wednesday at C$57.13.