Shares in Cott Corp., the world’s largest supplier of store-brand soft drinks, rose by 3.23% on the Toronto stock exchange yesterday. More than 75,000 shares changed hands on Monday after investment bank UBS upgraded Cott’s stock from “neutral 1” to “buy 1”.
“We believe Cott’s proven track record of beating even the top-end of management’s annual EPS guidance, coupled with the high probability of new retailer wins and share gains in existing customers justifies this level,” UBS analysts wrote in a research note.
Earnings per share estimates for 2003 were increased by UBS analysts from C$1.00 ($1.31) to C$1.08 ($1.42). They also increased their medium-term earnings growth forecast from 15% to 16-18%, and sales growth from 8% to 10%.
