The CAD 75 target price, we have set on 17 July, has been reached. The stock is back to an opportune entry point and the technical and fundamental configuration remains interesting for a long strategy.
The stock is still undervalued with a P/E ratio estimated at 10.7x for 2013 (vs sector : 27.8x). Further, the group is in a healthy financial situation with a leverage ratio of only 1.05x in 2012 (vs sector : 1.6x).
Technically, the stock is moving in a bullish trend, fully supported by the 100-day moving average and a bullish trend line. The recent comeback on the latter argue in favor of a rebound toward USD 75. However, the technical recovery would be confirmed only in case of breakout of the 100-day moving average.
Thus, a long position can be opened on crossing the moving average, confirmed in daily closing price. The main objective is USD 75. A stop loss must be placed below the USD 68.7 support.
Metro Inc. is a food and pharmacy retailers and distributors company. The Company, through its activities as a retailer, franchisor or distributor, and manufacturer operates or supplies a network of supermarkets, discount stores and drugstores. It operates 975 food stores under several banners, including Metro, Metro Plus, Super C and Food Basics, as well as 645 drugstores primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners. The Metro banner, with its 328 stores including 120 Metro Plus stores in Quebec is a supermarket chain. The Super C banner operates 102 discount stores in Quebec and offers a range of grocery products. Food Basics is a discount store providing quality products to customers in 143 locations across Ontario. The Food Basics Pharmacy banner is located in 30 Food Basics grocery stores. Its Food Basics Pharmacy is a full-service pharmacy and offers professional services, such as health reminders and medical profiles, among others.
METRO INC. 
