blue-chip

Business Insights on One Consumer Staples Stock – MRU

Jun 27, 2024 | Team Kalkine

Read Time :5 min

Business Insights on One Consumer Staples Stock – MRU

MRU:TSX

Investment Type

Large-cap

Risk Level

Action

Rec. Price (CA$)

Section1: Company Overview

Metro Inc. (TSX: MRU) is one of the largest grocery retailers in Canada. It utilizes an array of business models, but it most frequently acts as either a retailer, operating individual stores, or a franchiser, licensing its trademarks and supplying merchandise to franchisees. The firm also acts as a distributor, leveraging its supply chain capabilities to service smaller neighborhood grocery stores.

This Report covers the Key Recommendation Rationale, Key Financial Metrics, Valuation, Target Price, and Recommendation on the stock.

1.1 Key Recommendation Rationale

Section2: Financial Highlights

2.1 Key Financial Highlights

Section 3: Stock Recommendation Summary

3.1 Valuation Methodology

Valuation Methodology (Illustrative): EV to Sales based

3.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~3.47% and ~4.15% over the last 1 week and 1 month respectively. Moreover, the stock is trading above the average 52-week high price of CAD 76.38 and 52-week low price of CAD 65.425, providing an opportunity to exit. Furthermore, the prices are trading near the resistance and could make some correction.

3.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of June 27, 2024). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, and currency as of June 27, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

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