UPDATE: BMO Capital Markets Upgrades Tim Hortons to Outperform Post Solid Quarter

BMO Capital Markets raised its rating on Tim Hortons

from Market Perform to Outperform with a reiterated price target of $50 a share. BMO Capital Markets commented, "The following are a few of the principal considerations underlying our research upgrade: Since its May high of almost $58, and after today's decline of almost 3%, Tim Hortons' stock has now retreated to the current level of just under $51. The stock now provides an attractive return to our target. Also, although the company reported decelerating SSS in Canada in Q2/12, the reported number was on very little retail price inflation. We anticipate that rising food commodity costs will result in a re-acceleration of SSS. In addition, with the Kraft announcement, we are encouraged that Tim Hortons is finally beginning to participate in the high-growth single-serve segment." Tim Hortons closed at $50.84 on Thursday.