{"id":644196,"date":"2010-01-26T15:13:00","date_gmt":"2010-01-26T20:13:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:386918"},"modified":"2010-01-26T15:13:00","modified_gmt":"2010-01-26T20:13:00","slug":"cautious-optimism-about-rona","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/644196","title":{"rendered":"Cautious optimism about Rona"},"content":{"rendered":"<p>An analyst day hosted by home improvement giant Rona Inc. has paved the way for a slew of consolidations in the market, setting its market share target to 20% by 2011 from a current level of 17.5%.<\/p>\n<p>\u201cWe interpret management\u2019s tone as cautiously optimistic,\u201d analyst Vishal Shreedhar UBS Investment Research wrote in a note to clients, maintaining his neutral rating on the shares and raising his price target to $18 from $17. <\/p>\n<p>\u201cRona\u2019s valuation is adequate. It currently trades at 12.9 times forward per share earnings, in line with its historical average,\u201d and trades at a 21.6% forward price to earnings discount to rival Home Depot, he added. <\/p>\n<p>Keith Howlett of Desjardins Securities maintained his buy rating and $17.50 price target on the shares, but reduced his 2010 estimate to $1.23 from $1.34. <\/p>\n<p>\u201cBased on management\u2019s projections of sales and margin growth excluding acquisitions, operating leverage to sales growth will be more muted in 2010 than we had previously projected,\u201d he said.  <\/p>\n<p>With an aggressive phase of market consolidation projected to begin, \u201cwe would stay on board as the story unfolds.\u201d&nbsp; <\/p>\n<p><a href=\"mailto:hshaw@nationalpost.com%20\">Hollie Shaw<\/a><a href=\"mailto:dpett@nationalpost.com%20\"><br \/><\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=386918\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An analyst day hosted by home improvement giant Rona Inc. has paved the way for a slew of consolidations in the market, setting its market share target to 20% by 2011 from a current level of 17.5%. \u201cWe interpret management\u2019s tone as cautiously optimistic,\u201d analyst Vishal Shreedhar UBS Investment Research wrote in a note to [&hellip;]<\/p>\n","protected":false},"author":2571,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-644196","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2HAg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/644196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/2571"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=644196"}],"version-history":[{"count":0,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/644196\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=644196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=644196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=644196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}