On Friday, BMO Capital Markets increased its price target on shares of CCL Industries Inc. (CCL/B:CN) (OTC: CCDBF) to Cdn$83.00, up from the previous Cdn$81.00, while maintaining an Outperform rating on the stock. The adjustment follows the company's first-quarter performance, which surpassed expectations, largely due to significant contributions from its Checkpoint and Innovia divisions.
The company's management expressed a positive stance during the earnings call, anticipating an uptick in earnings growth for the year 2024. The optimism is supported by several factors across the company's diverse segments.
The CCL division is expected to see positive developments, thanks to strong consumer demand, growth in GLP-1-focused Healthcare, a rebound in Design, and easier Secure segment comparisons starting in the second quarter. The Avery segment is projected to remain stable.
Checkpoint, known for its RFID solutions and apparel labeling, is another division where growth is expected to continue. Innovia, which specializes in label materials, has also been performing well year-to-date. The expected cost savings from a plant closure have further bolstered the positive outlook for Innovia.
The raised stock target price to Cdn$83 reflects the firm's confidence in CCL Industries' potential for accelerated earnings growth. The Outperform rating has been reiterated, signaling BMO Capital Markets' positive expectation for the stock's performance relative to the market.
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