Best Smidcap Ideas: PBH Looks Ready to Break Out of the Penalty Box

研报英文原文证据摘录

Best Smidcap Ideas: PBH Looks Ready to Break Out of the Penalty Box

TD Cowen Consumer Staples

Global Research

Premium Brands Holding Corp.

TD SECURITIES INC. - CANADA BEST SMIDCAP IDEAS 2026

Price: C$86.56 (06/17/2026) Best Smidcap Ideas: PBH Looks Ready to

Price Target: C$140.00 Break Out of the Penalty Box

BUY (1)

ESG SCORE: 59/100

Derek J. Lessard^ THE TD COWEN INSIGHT

514 289 0384

PBH is our top Smidcap idea, with record U.S. organic growth reinforcing our conviction. At

derek.lessard@tdsecurities.com

8.9x forward cons. EBITDA - a 10-year low - the valuation looks increasingly compelling as

Ryan Neal^ Specialty Foods sustains strong growth, the sales pipeline builds visibility, FCF inflects higher,

416 308 2213 and targeted divestitures support deleveraging and a sharper portfolio focus.

ryan.neal2@tdsecurities.com

Key Data Summary Of Our Thesis

Symbol TSX: PBH-T

We expect PBH’s margins to improve over our forecast horizon, driven by strong sales

12-Month Div (Est.): C$3.49

momentum, pricing, commodity normalization, improving labor efficiency, and volume-driven

Beta: 0.89

operating leverage. With high incremental margins, the capex cycle largely behind it, and

12-Month Total

65.8% working capital normalizing, we forecast total leverage declining below 3.0x by YE2026 andReturn:

52-Week Range: C$106.12-C$78.90 approaching 2.0x by YE2027. This should support a re-rating from decade-low valuation levels

Market Cap: C$4.5B and drive the shares closer to our $140 target, with a material monetization event offering

Dil. Shares Out (MM): 52.4 additional upside.

Float Shares (mm): 49.5

What Is Underappreciated Or Misunderstood?

Float Cap ($mm): C$4,285

Dividend: C$3.40 Investors remain overly focused on PBH’s elevated leverage and below-potential FCF, both