Loblaw Companies (TSE:L) Sets New 1-Year High on Analyst Upgrade

Loblaw Companies Limited (TSE:L) hit a new 52-week high during trading on Tuesday after TD Securities raised their price target on the stock from C$65.00 to C$75.00. TD Securities currently has a buy rating on the stock. Loblaw Companies traded as high as C$69.27 and last traded at C$69.26, with a volume of 1130900 shares trading hands. The stock had previously closed at C$67.26.

L has been the topic of several other research reports. BMO Capital Markets upped their target price on shares of Loblaw Companies from C$63.00 to C$68.00 and gave the stock a “market perform” rating in a report on Monday. Canadian Imperial Bank of Commerce boosted their price target on shares of Loblaw Companies from C$58.50 to C$67.00 in a research report on Thursday, November 13th. Royal Bank Of Canada upped their price objective on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the stock an “outperform” rating in a research note on Friday, January 23rd. Desjardins upgraded shares of Loblaw Companies from a “hold” rating to a “buy” rating and lifted their target price for the company from C$62.00 to C$67.00 in a research note on Thursday, December 4th. Finally, National Bank Financial boosted their target price on Loblaw Companies from C$62.00 to C$66.00 and gave the stock an “outperform” rating in a report on Wednesday, January 28th. Six analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of C$91.63.

Key Headlines Impacting Loblaw Companies

Here are the key news stories impacting Loblaw Companies this week:

• Positive Sentiment: Q4 results showed rising revenue and traffic as value‑seeking shoppers boosted sales; Loblaw reported C$0.67 EPS on C$15.7B in revenue, which underpins near‑term operating strength. Loblaw 4Q Profit, Revenue Rise as Value‑Seeking Shoppers Boost Traffic
• Positive Sentiment: Company momentum: retail revenue topped C$16B for 2025, signaling scale and sales resilience across formats. Loblaw retail revenue surpasses $16 billion in 2025
• Positive Sentiment: Analyst optimism: TD Securities and BMO published bullish notes expecting further upside, and an analyst upgrade recently helped lift the stock to a 52‑week high — supportive for investor sentiment. Loblaw Companies (TSE:L) Stock Price Expected to Rise, TD Securities Analyst Says
• Positive Sentiment: Expansion strategy: Loblaw plans to open ~70 new stores in 2026 with a focus on pharmacies and a hard‑discount model — a growth initiative aimed at capturing cost‑conscious shoppers. Loblaws Plans 70 New Stores in 2026
• Neutral Sentiment: Large capex and hiring: Loblaw announced a multi‑billion dollar investment program for 2026 and plans to create thousands of jobs; positive for long‑term growth but could increase near‑term cash outflows. Canada’s Loblaw to invest $1.75 billion in 2026, create 9,700 new jobs
• Neutral Sentiment: ESG tie‑up: partnership with Ducks Unlimited Canada on sustainable agriculture supports supply‑chain resilience and ESG positioning but has limited immediate financial impact. Ducks Unlimited Canada and Loblaw Companies Limited partner for a sustainable future for Canadian agriculture
• Negative Sentiment: Consumer reaction risk: a proposed redesign of Loblaw banners drew social‑media criticism, which could create short‑term brand noise. Canadians are roasting proposed glow‑ups at Loblaw‑owned stores
• Negative Sentiment: Why shares fell: despite the positives above, investors appear to be trimming risk after a recent run to new highs and weighing higher planned spending and Loblaw’s leverage profile — factors that can pressure near‑term returns.

Loblaw Companies Price Performance

The firm has a market cap of C$75.36 billion, a P/E ratio of 31.16, a PEG ratio of 3.23 and a beta of 0.30. The company has a debt-to-equity ratio of 166.11, a current ratio of 1.29 and a quick ratio of 0.68. The company’s 50-day moving average is C$63.75 and its two-hundred day moving average is C$67.00.

Loblaw Companies (TSE:L) last released its earnings results on Wednesday, February 25th. The company reported C$0.67 EPS for the quarter. Loblaw Companies had a net margin of 3.71% and a return on equity of 19.90%. The firm had revenue of C$15.70 billion for the quarter. Sell-side analysts anticipate that Loblaw Companies Limited will post 9.1225541 EPS for the current fiscal year.

Loblaw Companies Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 30th were given a dividend of $0.1411 per share. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, December 15th. Loblaw Companies’s payout ratio is currently 26.31%.

About Loblaw Companies

Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President’s Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.