MTRAF - Loblaw: Modest Growth Expected But Shares Fairly Valued
Investment Thesis
Loblaw (LBLCF) [TSX:L] delivered low single-digit top and bottom line growth in Q1 2019. The company has a digital strategy to help defend its market share. In addition, it also has several notable cost saving initiatives that will help it to control its operating expenses. Loblaw currently pays a 1.75%-yielding dividend. However, its shares are fairly valued. We believe investors may want to wait on the sideline for a better entry point.
Recent Developments: Q1 2019 Highlights
Loblaw delivered about 3.1% revenue growth in Q1 2019. Similarly, its EBITDA only grew