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The Jean Coutu Group (PJC) (TSE:PJC.A) has earned an average rating of “Hold” from the eight brokerages that are presently covering the stock, Analyst Ratings News reports. Seven research analysts have rated the stock with a hold recommendation, The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is C$20.50.
Separately, analysts at RBC Capital raised their price target on shares of The Jean Coutu Group (PJC) from C$23.00 to C$24.00 in a research note on Tuesday. They now have a “sector perform” rating on the stock.
Jean Coutu has been adding small-sized stores and adding new products, especially to its private label brands.
Prices of generics are generally lower than branded drugs as companies compete to sell medicines that are essentially interchangeable.
Price-controls for generic drugs, aimed at cutting costs for government and private health programs, have also hurt Jean Coutu and rivals such as Shoppers Drug Mart, owned by Loblaw companies
Generic drugs accounted for 68.1 percent of prescriptions in the second quarter, compared with 67.2 percent, a year earlier, Jean Coutu said today.
“We are very satisfied with the results of the second quarter of fiscal 2015 realized in spite of a restrictive regulatory context and an environment that is growingly competitive. Our performance demonstrates the strength of our business plan,” the company’s chief executive officer, François Coutu, said in the statement.
“We are confident that the effective implementation of our strategies and the commitment of our affiliated pharmacist owners and of their employees will allow us to pursue our growth and remain the leader in our sector.”
Net profit fell to C$53.6 million, or 28 Canadian cents per share, from C$208.2 million, or 99 Canadian cents per share, a year earlier. The company had a gain of C$158.3 million related to the investment in drugstore chain Rite Aid Corp a year earlier.
Gross sales of Pro Doc generic drugs rose to $48.1 million from $44.6-million a year earlier.
Same-store sales rose 2.4 per cent in the quarter, compared with a 0.1 percent fall a year earlier.
Agencies/Canadajournal
