Canada NewsWire
NEW YORK, Dec. 5, 2019
NEW YORK, Dec. 5, 2019 /CNW/ -- Report entitled "Kicking The Tire Down The Road" outlines how Canadian Tire Corporation ("CTC") faces 35-50% downside risk to approximately C$77 to C$100 per share. The full contents of the report can be reviewed at www.sprucepointcap.com. Spruce Point believes that Canadian Tire is a challenged brick-and-mortar retailer perceived as a dependable mid-single-digit grower on an increasingly precarious foundation of unsustainable debt and recent financial results dependent on aggressive accounting practices. We also believe the market has failed to realize multiple signals of financial stress.
Despite these clear risks, the sell-side has only one sell recommendation on CTC and sees only 11% upside to C$167 in the next 12 months. We believe that investors will be surprised and disappointed by the risk to capital return plans and the poor underlying earnings growth of the business. Spruce Point sees 35% - 50% downside risk in CTC shares when each of these factors is considered.
Spruce Point Capital has a short position in Canadian Tire Corporation (CTC) and stands to benefit if its share price falls.
About Spruce Point Capital
Spruce Point Capital Management, LLC, is a forensic fundamentally-oriented investment manager that focuses on short-selling, value and special situation investment opportunities.
Contact
Sean Donohue
Spruce Point Capital Management
[email protected]
212-519-9813
Spruce Point Capital Management, LLC is a member of the Financial Industry Regulatory Authority, CRD number 288248.
View original content:http://www.prnewswire.com/news-releases/spruce-point-capital-management-releases-a-strong-sell-research-opinion-on-canadian-tire-corporation-tse-ctca-300970097.html
SOURCE Spruce Point Capital Management, LLC
View original content: http://www.newswire.ca/en/releases/archive/December2019/05/c7506.html
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