TD Securities raised its price target on Saputo Inc. (SAP.TO) to $49 from $44 on Friday.

Analyst Michael Van Aelst maintained a Buy rating on shares of the Montreal-based dairy company.

"Despite a superior earnings outlook, SAP trades at a meaningful discount to many CPG peers," Van Aelst said in a note to clients.

"With management executing well on the controllables, Canada firing on all cylinders, ARG hyperinflation impact diminishing, ARG/EUR milk costs declining, and USA profits moving higher (led by capital project returns), we see 16% NTM EBITDA growth plus modest valuation expansion pushing shares to our $49 PT," the analyst said.

"After several disruptive years (COVID, labor shortages, GSP ramp-up) improving execution is now evident. Capacity expansion and better order fill rates (back to traditional high standards) are driving vol growth and enabling price discipline."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)