Loblaw Cos. Ltd. (L.TO) was upgraded to Buy from Hold at Desjardins on Thursday.

Analyst Chris Li raised his price target on shares of the Canadian grocery retailer to $67 from $62.

After market close on Wednesday, Loblaw announced an agreement to sell PC Financial to EQB Inc. (EQB.TO) in a cash and share transaction.

"The transaction will expand and strengthen the PC Optimum program by accelerating growth of its PCO linked financial products and providing L access to EQB's 800k customers," Li said in a note to clients.

"While the sale of PC Financial is not material to L's overall scale, it will simplify its operational structure," the analyst said.

"We believe this is yet another way L is creating value for shareholders," Li said.

(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)