Saputo shares drop post Spruce Point's strong-sell opinion

Saputo

29/11/2022 19:35

** Dairy product manufacturer Saputo Inc's shares  SAP.TO 
fall 4% to C$32.8 following a strong-sell opinion by Spruce
Point Capital Management
    ** Brokerage believes co's previous acquisitions have not
contributed to co's core earnings, while noting that it
estimates a significant erosion in earnings, on EBITDA basis,
over the past five years 
    ** Saputo requires to be more financially transparent where
it needs to disclose quantitative impact on results; co's lack
of consistent financial and environmental reporting shows
financial stress - Spruce Point 
    ** Spruce made its observations in a detailed report,
according to the brokerage's statement
    ** Spruce Point sees inflation and the Russian-Ukraine
conflict to negatively impact co's business in Argentina 
    ** Seven of nine brokerages rate the stock "buy" and two
"hold"; their median PT is C$39.5 - Refinitiv
    ** Stock had risen 12% YTD 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))