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Analysts Offer Insights on Consumer Cyclical Companies: Lear (LEA), O'Reilly Auto (ORLY) and Chipotle (CMG)

Analysts Offer Insights on Consumer Cyclical Companies: Lear (LEA), O'Reilly Auto (ORLY) and Chipotle (CMG)

Globe and Mail25-07-2025
There's a lot to be optimistic about in the Consumer Cyclical sector as 3 analysts just weighed in on Lear (LEA – Research Report), O'Reilly Auto (ORLY – Research Report) and Chipotle (CMG – Research Report) with bullish sentiments.
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Lear (LEA)
Bank of America Securities analyst John Murphy maintained a Buy rating on Lear yesterday and set a price target of $135.00. The company's shares closed last Wednesday at $108.79.
According to TipRanks.com, Murphy is a 5-star analyst with an average return of 7.8% and a 58.2% success rate. Murphy covers the NA sector, focusing on stocks such as Penske Automotive Group, Magna International, and Group 1 Automotive. ;'>
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lear with a $115.50 average price target, which is a 7.3% upside from current levels. In a report issued on July 9, TR | OpenAI – 4o also upgraded the stock to Buy with a $119.00 price target.
O'Reilly Auto (ORLY)
In a report released today, Simeon Gutman from Morgan Stanley reiterated a Buy rating on O'Reilly Auto, with a price target of $105.00. The company's shares closed last Wednesday at $95.42.
According to TipRanks.com, Gutman is a 4-star analyst with an average return of 3.0% and a 60.1% success rate. Gutman covers the NA sector, focusing on stocks such as Petco Health and Wellness Company, Ollie's Bargain Outlet Holding, and Academy Sports and Outdoors. ;'>
Currently, the analyst consensus on O'Reilly Auto is a Strong Buy with an average price target of $100.50, a 5.7% upside from current levels. In a report issued on July 15, Wells Fargo also maintained a Buy rating on the stock with a $103.00 price target.
Chipotle (CMG)
Morgan Stanley analyst Brian Harbour maintained a Buy rating on Chipotle today and set a price target of $65.00. The company's shares closed last Wednesday at $52.78.
According to TipRanks.com, Harbour is a 3-star analyst with an average return of 1.5% and a 54.0% success rate. Harbour covers the NA sector, focusing on stocks such as Restaurant Brands International, Brinker International, and Darden Restaurants. ;'>
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Chipotle with a $61.20 average price target, representing a 16.7% upside. In a report issued on July 17, BMO Capital also upgraded the stock to Buy with a $65.00 price target.
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Slow US demand drags Starbucks despite optimism over revamp
Slow US demand drags Starbucks despite optimism over revamp

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time03-08-2025

  • Canada News.Net

Slow US demand drags Starbucks despite optimism over revamp

SEATTLE, Washington: Starbucks expressed confidence this week that a combination of streamlined store operations and new menu offerings—such as a cold foam protein drink—will soon help revive its struggling U.S. business. However, lackluster demand in its home market continues to weigh down overall performance. In its fiscal third quarter (April–June), Starbucks reported a four percent year-over-year revenue increase to US$9.5 billion, surpassing Wall Street's forecast of $9.3 billion, according to FactSet. Despite this, the company's same-store sales, which measure performance at locations open at least a year, fell two percent, marking the sixth consecutive quarter of decline in the U.S. The drop was worse than analysts had expected. U.S. customers are spending more per visit, but making fewer trips, with transactions down 4 percent in the quarter. Meanwhile, Starbucks saw growth in China, its second-largest market, where same-store sales rose. CEO Laxman Narasimhan (not Brian Niccol; Niccol is CEO of Chipotle) said Starbucks is exploring around 20 partnership offers to help expand deeper into smaller Chinese cities. "We remain committed to our China business and want to retain a meaningful stake," he told investors, calling the high level of interest a "vote of confidence." To address U.S. performance, Starbucks plans to roll out its new "Green Apron Service" model nationwide starting mid-August. Tested in 1,500 locations over eight weeks, the initiative sets clearer staffing and service standards to handle peak periods more efficiently. Alongside this, new order-management software is helping reduce wait times; 80 percent of in-store orders are now prepared in under four minutes, a benchmark the company set last fall. "I think Green Apron Service will define the Starbucks customer experience going forward," Narasimhan said. The company believes this operational reset is essential before adding more items to the menu. Starbucks also plans to streamline its offerings while introducing new ones: high-protein drinks, gluten-free snacks, baked goods, a new dark roast coffee, and experimental beverages using coconut water and customizable energy blends are on the horizon for 2025. Unlike past product rollouts, which were often conceived at corporate headquarters with little input from stores, the new strategy involves frontline employees in developing recipes that are quick and consistent to prepare. "Those days are over," Narasimhan said of the old top-down approach. Starbucks is also shifting its store design philosophy to encourage customers to spend more time in cafés. It's modifying or closing many of its roughly 90 mobile order-only outlets and is prototyping a new café layout with 32 seats and a drive-thru, which costs 30 percent less to build than the current design. The company is investing heavily in its transformation. One significant expense in the quarter was a large-scale leadership summit in Las Vegas that brought together 14,000 store managers and regional staff. Despite the revenue growth, Starbucks reported a sharp drop in profits. Net income fell 47 percent to $558 million, and adjusted earnings per share declined to 50 cents, well below analysts' expectations of 65 cents.

Businesses owners in P.E.I. and N.B. say cuts to bridge tolls, ferry fees will give them a boost
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time29-07-2025

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Business leaders around the Maritimes are feeling optimistic over the news that the cost of crossing the Confederation Bridge and using the Northumberland ferry service is being reduced. Prime Minister Mark Carney announced Monday that the toll to use the bridge, which connects Prince Edward Island with New Brunswick, will be reduced to $20 as of this Friday. The rates to travel by ferry between Wood Islands, P.E.I., and Caribou, N.S., are also going down by 50 per cent on Aug. 1. The move fulfilled an election campaign promise from Carney, who pledged to reduce the cost of travelling between provinces and barriers to interprovincial trade. Marc Pelletier, director of membership and business support at the Chamber of Commerce for Greater Moncton, said the announcement is good news for New Brunswick and P.E.I. "The high bridge tolls have really acted as an interprovincial tariff, so to speak, between the two provinces, increasing the cost of transport and final costs of goods on both sides," he said. "You just have to scan the parking lot of Costco and other retailers in Moncton on a weekend to see how many Islanders make the trek across the bridge to shop." 'It will drive more business' Ben Murphy, CEO of P.E.I.-based Murphy Hospitality Group and Whitecap Entertainment, agrees. His companies have business interests on both sides of the bridge that include retaurants, breweries and hotels. "Anytime anything's cheaper, it will drive more business," Murphy said. "It's tremendous news for Islanders because obviously we're back and forth all the time." Whitecap Entertainment also produces the Sommo Festival held in September in Cavendish, P.E.I., which draws concertgoers from around the Maritimes. Murphy said he's already seen people who are set to attend the festival commenting on social media about the savings the toll reductions will bring. "It's cheaper than it was to come to P.E.I., and hopefully that will continue to drive tourism," he said. "I think there will be big crowds at Sommo either way, but I'm expecting a few more people because of this announcement." WATCH | Islanders and tourists excited about reduced price to leave P.E.I.: Islanders and tourists excited about reduced price to leave P.E.I. 1 day ago Starting Aug. 1, Islanders and visitors will save some money when they leave Prince Edward Island. The toll for the Confederation Bridge is being reduced to $20, while the cost to take ferries is being cut by half. CBC's Tony Davis spoke with people in Charlottetown about what it means for their travel plans. Murphy said the changes will cut costs for Islanders travelling to New Brunswick and Nova Scotia, and will also put money into the pockets of P.E.I. consumers. "There's no question that... the price of food at grocery stores or at restaurants [has] gone up a lot over the last five years," he said.

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time29-07-2025

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