The Globe and Mail reports that Montreal-based Metro Inc. shares are experiencing all-time highs despite increasing competition in the grocery industry, a flat profit, and a one per cent increase in same-store sales. Analysts pointed out that rivals Walmart, Target and Loblaw and their competitive prices might pose a threat for Metro.
Metro shares have doubled in the last five years, with the stock trading at an all-time at just below $76 in July.
“Metro continues to be impacted by the highly competitive grocery environment. It’s a steady story, but not something we’re super-excited about,” Accountability Research analyst Kevin Chu told Grocery Business.
The Globe and Mail reports that CIBC World Markets analyst Perry Caicco says Metro Inc. continues to engineer its earnings but needs to improve its performance and position in Ontario. This follows the recent news that Metro appointed Carmen Fortino as its new senior vice-president for its Ontario division.
