Loblaw Companies Limited: An Effective Rx

Research evidence excerpt

Loblaw Companies Limited: An Effective Rx

Global Research

31 July 2026ab

Loblaw Companies Limited Equities

CanadaAn Effective Rx

Food Retailers & Wholesalers

12-month rating Buy

Loblaw's 2Q results were mixed, with strong pharmacy growth offsetting

softness elsewhere

12m price target C$76.00

We think Loblaw's results contained pluses and minuses. Its food retail comp came in Prior : C$73.00

slightly light, but the retailer outperformed the broader marketplace in both its hard

Price (30 Jul 2026) C$65.70

discount and conventional grocery businesses. It was able to keep its internal inflation

metric meaningfully lower than grocery CPI, reflecting its success in pushing back on RIC: L.TO BBG: L CN

supplier cost increases and providing trade down opportunities for consumers. We think

Trading data and key metrics

this should help keep it front of mind for consumers who remain pressed on costs. Its

52-wk range C$69.26-53.46

pharmacy business came in strong, with the retailer benefitting from the sale of branded

and generic GLP-1s. Its front store still lagged a bit, but the retailer is making progress Market cap. C$76.8b/US$54.8b

with its food refresh test and continues to see solid results in beauty. Plus, it continued to Shares o/s 1,170m (COM)

make progress on its longer term growth opportunities, including T&T (its opening in Free float 47%

California was Loblaw's strongest, chainwide to date) and alternative profit streams Avg. daily volume ('000) 1,325

(e.g. retail media, freight as a service, LifeMark). We believe the stock's risk/reward Avg. daily value (m) C$83.8

skews favorably from here. Common s/h equity (12/26E) C$11.5b

P/BV (12/26E) 6.6x

Loblaw's Food Retail SSS growth slowed as it faced a tough compare.

Net debt to EBITDA (12/26E) 0.6x