Empire Company stock price target raised to C$55 by BMO Capital

BMO Capital raised its price target on Empire Company to C$55, citing sequential shopper strengthening and improved Q4 FY25 selling, general, and administrative expenses, while cautioning against assuming continued acceleration in same-store sales. Separately, Nike received multiple price target increases from analysts including UBS, Truist, and Piper Sandler, reflecting cautious optimism driven by improved inventory levels, progress in turnaround efforts, and better-than-expected sales trends, although some firms noted lingering concerns like potential tariff impacts.

Analysis

BMO Capital has raised its price target for Empire Company to C$55.00, citing observed sequential strengthening in shopper behavior from the fourth-quarter fiscal 2025 results. However, this optimism is tempered by a maintained 'Market Perform' rating and caution against assuming further acceleration in same-store sales, given the company faces more challenging comparable sales in the second half of fiscal 2026. BMO remains confident in its projection of a 20 basis point annual gross margin expansion but notes that consistent improvement in selling, general, and administrative expenses is required to achieve the firm's target of 8-11% EPS growth. Separately, Nike has garnered a series of upward price target revisions from multiple Wall Street firms, indicating a cautiously optimistic consensus. Analysts at UBS, Truist, and Piper Sandler raised their targets to $63.00, $85.00, and $80.00, respectively, driven by factors such as improved inventory levels, progress in turnaround efforts, and better-than-expected wholesale demand. Williams Trading identified Q4 FY25 as a potential turning point for sales and margins. Despite this positive momentum, some analysts, notably UBS, retain a 'Neutral' rating, flagging risks from potential tariffs and expressing skepticism about the sustainability of the fundamental improvements.

Key Decisions for Investors

• For Empire Company, while the improved Q4 SG&A and shopper behavior are positive, the 'Market Perform' rating suggests investors should await evidence of sustained same-store sales growth against tougher second-half comparables before increasing exposure.
• Investors could view the broad-based analyst price target upgrades for Nike as an indicator that its turnaround is gaining traction, with improved inventory and sales trends suggesting a potential inflection point.
• Despite the optimism surrounding Nike, it is prudent to weigh potential rewards against documented risks such as future tariff impacts and the need for the company to demonstrate sustained, not just temporary, fundamental improvement.
• A key validation for Nike's recovery will be whether management's outlook aligns with the emerging Wall Street consensus for full-year EPS in the $1.60-$1.80 range.