12:52 PM EST, 01/29/2025 (MT Newswires) -- Metro reported first-quarter EPS of $1.10 versus NBF and consensus at $1.09; last year was $1.02.

National Bank analyst Vishal Shreedhar sees the results as largely neutral. A lower tax rate aided EPS by ~$0.03 vs. NBF. Also first-quarter SG&A rate was lower y/y when adjusted for Christmas, Moi Rewards launch and tax-related professional fees, he added.

"We believe a tax holiday of ~$66 million over three years (related to DC investments; larger share in F2025) suggests upside to MRU's 8-10% medium/long-term annual EPS growth target."

National is modeling 13% EPS growth in F2025, noting that EPS expectations are revised slightly higher, primarily reflecting lower tax: F2025 goes to $4.86 from $4.76 and F2026 goes to $5.36 from $5.30.

Maintain Sector Perform rating; price target is $94.

Price: 91.25, Change: +2.69, Percent Change: +3.04