MTY Food Group Target Lowered to $51, Outperform Rating Maintained at National Bank

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MTY Food Group Target Lowered to $51, Outperform Rating Maintained at National Bank

, MT Newswires - 1:08 PM ET 4/14/2025 default

01:08 PM EDT, 04/14/2025 (MT Newswires) -- National Bank has trimmed its target by $3 to $51 but reiterated its Outperform rating on MTY Food Group ( MTYFF ) after the company reported first-quarter normalized adjusted EBITDA of $60.2 million beating National Bank estimate at $58.5 million. Last year was $59.5 million.

"We view results to be functionally in line vs. NBF," notes analyst Vishal Shreedhar. First quarter performance was pressured by adverse weather, particularly in U.S. frozen treats, while Canada performance was consistent. Early second-quarter trends point to more normal operating conditions and MTY indicated consumer behaviour has not materially changed. Still, the macroeconomic backdrop remains volatile and consistent execution will be key, Shreedhar adds.

Other points -- capex is expected to be lower, and an improving balance sheet and FCF generation support tuck-in acquisitions. Also, given low valuation MTY expects to execute on its NCIB.

Maintain Outperform rating; price target lowered to $51 from $54.

Price: 38.55, Change: -0.70, Percent Change: -1.78

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