Saputo Inc

SAP: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 11.50	Jsdm	Ckqvnbjnl

No-Moat Saputo Succumbs to Inflationary Headwinds; Shares Slightly Overvalued

Erin Lash , Grace Na

Feb 11, 2022

After digesting Saputo’s third-quarter results, we don’t anticipate a material change to our CAD 25.50 fair value estimate, or our long-term projections (low-single-digit annual sales growth and high-single-digit operating margins), even after incorporating the reversal of our prior expectations for a U.S corporate tax rate increase in 2022 and time value. However, shares still trade north of our valuation, and we’d suggest investors remain on the sidelines.

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