National Bank Keeps a Buy Rating on Roots Corporation (ROOT)

By Carrie Williams

Roots Corporation (ROOTResearch Report) has received a rating update from a Wall Street analyst today. Analyst Vishal Shreedhar from National Bank remains bullish on the stock and has a C$6 price target.

According to TipRanks.com, Shreedhar is a 1-star analyst with an average return of -5.1% and a 40.0% success rate. Shreedhar covers the Services sector, focusing on stocks such as Loblaw Companies Limited, Canadian Tire Corp Ltd, and Dollarama Inc.

Roots Corporation has an analyst consensus of Moderate Buy, with a price target consensus of C$8.44, implying a 140.5% upside from current levels. In a report issued on December 4, BMO Capital also reiterated a Buy rating on the stock with a C$9 price target.

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Based on Roots Corporation’s latest earnings release for the quarter ending October 31, the company reported a quarterly net profit of C$2.8 million. In comparison, last year the company had a net profit of C$4.98 million.

Roots Corp. engages in the provision of leather goods, apparel, and accessories. It operates through the Direct-to-consumer ( DTC); and Partners and Other segments. The Direct-to-consumer segment comprises of sales through its corporate retail stores, and e-commerce.

The company’s shares closed on Thursday at C$3.51, close to its 52-week low of C$3.21.