Goldman Raises Price Target on Tim Hortons (THI), Continues To Post High-Teens EPS Growth
Tweet
Share
E-mailGet Alerts THI Hot Sheet
Price: $85.92 --0%
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Join SI Premium – FREE
Goldman Sachs is maintaining its Buy rating on shares of Tim Hortons (NYSE: THI) following a recent meeting with management. The analysts comment that they are more confident in the company's performance and are raising their 2011, 2012, and 2013 EPS estimates to $2.45, $2.95, and $3.49 from $2.42, $2.87, and $3.35 as a result. To go inline with its new estimates, Goldman is raising their price target to $57 from $52.
In the Canadian market, the firm sees the potential for near double-digit top-line growth as pricing is likely to drive 5%-6% SSS growth. Goldman believe that the company's U.S. EBIT will double to $20 million in 2011 and has the potential to grow to $50 million plus as franchisee assistance wanes.
The firm predicts that THI has the potential for a multiple expansion as investors increasingly appreciate the potential for sustained high-teens EPS growth. The company is also exploring partnership options for a single serve strategy which could drive $0.10-plus of EPS.
THI announced a buyback plan for $445 million of its shares in 2011. Goldman believes that a repurchase may sustain at a similar $300-$400 million pace in out-years.
For more ratings news on Tim Hortons click here and for the rating history of Tim Hortons click here.
Shares of Tim Hortons closed at $46.08 yesterday.
In the Canadian market, the firm sees the potential for near double-digit top-line growth as pricing is likely to drive 5%-6% SSS growth. Goldman believe that the company's U.S. EBIT will double to $20 million in 2011 and has the potential to grow to $50 million plus as franchisee assistance wanes.
The firm predicts that THI has the potential for a multiple expansion as investors increasingly appreciate the potential for sustained high-teens EPS growth. The company is also exploring partnership options for a single serve strategy which could drive $0.10-plus of EPS.
THI announced a buyback plan for $445 million of its shares in 2011. Goldman believes that a repurchase may sustain at a similar $300-$400 million pace in out-years.
For more ratings news on Tim Hortons click here and for the rating history of Tim Hortons click here.
Shares of Tim Hortons closed at $46.08 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
- GameSquare Holdings Inc (GAME) PT Lowered to $5 at Roth/MKM
- BMO Capital Reiterates Outperform Rating on Metals Acquisition Ltd. (MTAL)
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
