Shoppers Drug Mart seen as defensive buy

From the Financial Post:
Continued growth at Shoppers Drug Mart Corp. in the first quarter with no discernible impact from an economic slowdown has analysts pegging the drug retailer as a good defensive buy.

"If anything, they are seeing increased market share" in the face of a dwindling economy, said analyst Robert Gibson of Octagon Capital in a note to clients, raising his per share earnings estimates in fiscal 2009 to $2.72 from $2.67 and target price to $51.90. He maintained his hold recommendation.

Vishal Shreedhar at UBS Investment Research noted Shoppers "continues to perform in a moderating consumer environment" in a note to clients.

"We view Shoppers as a high-quality company with a defensive earnings stream. Margins continue to benefit from improved mix, increased private label, global sourcing, purchasing power and maturing real estate." ...more