An equity research analyst for BMO Capital Markets predicts that the Toronto Raptors’ NBA championship win will mean good things for Canadian Tire’s bottom line.
Analyst Peter Sklar has raised his profit outlook for CTC, as fans flock to stores to snap up team merchandise.
“Both SportChek and Canadian Tire will be positively impacted by the Raptors’ successful win this season,” he wrote in a report released on Tuesday.
Sklar raised his estimate for Canadian Tire’s fiscal second-quarter earnings-per-share two per cent to $3.06, based on a 10 per cent annual increase in same-store-sales for the company’s sport-themed stores and a 4.5 per cent rise in Canadian Tire same-store-sales.
He pointed out that when one searches ‘Raptors merchandise’ in Google, both SportChek and Canadian Tire have prominent ads in the search results.
Sklar has a Market Perform rating on Canadian Tire and a price target of $158 per share.