UPDATE: Desjardins Capital Markets Downgrades Tim Hortons to Hold on Mixed Factors
In a report published Thursday, Desjardins Capital Markets analyst Keith Howlett downgraded the rating on Tim Hortons (NYSE: 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.”
Tim Hortons closed on Wednesday at C$57.13.
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