01:56 PM EDT, 07/10/2024 (MT Newswires) -- Maple Leaf Foods ( MLFNF ) this week announced the spin-off of its pork business, which is expected to be completed early next year. Maple Leaf will retain a 19.9% stake in the new company.

National Bank's Vishal Shreedhar writes that the split is expected to support a closing of the value gap between RemainCo and other CPG peers, and sharpen focus on growth opportunities at the two companies. That said, prior guidance is unchanged, he adds.

"Assuming an EV/EBITDA multiple of ~6x for NewCo and ~11x for RemainCo, we calculate >15% upside, all else equal (re-rating potential). Notwithstanding a possible re-rate, we view execution to be the key value driver for MFI."

Maintain Outperform rating; price target is $29.

Price: 24.48, Change: +0.08, Percent Change: +0.33