Analysts Set Average Price Target of C$95.71 for Stella-Jones

Stella-Jones Inc. (TSE:SJ) has garnered an average rating of “Moderate Buy” from analysts, with a consensus twelve-month price target of C$95.71. This information comes from a report by Marketbeat Ratings, which analyzed the views of seven research firms currently covering the company. The ratings reveal a balanced outlook, with three analysts recommending a hold and four advocating for a buy.

Several financial institutions have recently adjusted their price targets for Stella-Jones. For instance, on November 6, 2023, TD Securities raised its target from C$90.00 to C$97.00 while maintaining a buy rating. The Royal Bank of Canada also increased its price objective from C$78.00 to C$87.00, designating the stock as a “sector perform” in a report dated October 8, 2023. National Bankshares took a more optimistic stance, elevating their target from C$95.00 to C$107.00 and issuing an “outperform” rating on December 15, 2023. Desjardins set a target of C$102.00 with a buy rating on December 12, 2023. Conversely, CIBC lowered its target slightly from C$90.00 to C$89.00 on November 7, 2023.

Recent Financial Performance

Stella-Jones released its quarterly earnings report on November 5, 2023, revealing an earnings per share (EPS) of C$1.59 and total revenue of C$958 million for the quarter. The company reported a return on equity of 18.36% and a net margin of 9.43%. Analysts predict that the company will achieve an EPS of approximately 6.45 for the current fiscal year, reflecting a solid performance amid market fluctuations.

In a related development, Director Michelle Annette Banik purchased 472 shares of Stella-Jones stock on November 12, 2023, at an average cost of C$84.60 per share, amounting to a total investment of C$39,931.20. Following this transaction, Banik’s overall ownership increased, signaling confidence in the company’s future prospects. Currently, company insiders hold approximately 0.14% of the stock.

Company Overview

Stella-Jones Inc. specializes in the production and sale of lumber and wood products, operating primarily in two segments: Pressure-treated wood and Logs & Lumber. The Pressure-treated wood segment, which includes utility poles, railway ties, and residential lumber, accounts for the bulk of the company’s revenue. The Logs & Lumber segment involves the sale of logs deemed unsuitable for utility poles and excess lumber directed to local home-building markets.

As the demand for sustainable wood products continues to grow, Stella-Jones is well-positioned to capitalize on market opportunities. Investors and analysts alike will be watching closely as the company navigates the challenges and opportunities ahead.