Jan 30, 2018
By Michael Kramer
A long-awaited deal to reduce generic drug costs has led to Desjardins Group and R-B-C downgrading their outlook for Loblaw Companies stock.
Desjardins has lowered its target price for the grocery-and-pharmacy retailer to 76-dollars per share from 84-dollars – and cut its recommendation to hold.
An analyst with R-B-C Dominion Securities also dropped her target price from 87 to 84-dollars.
The change comes after the alliance representing the provinces, territories and federal government reached an agreement with the Canadian Generic Pharmaceutical Association – that will see the prices of nearly 70 generic drugs discounted by up to 90 per cent – of their brand name equivalents.