The Globe and Mail reports in its Friday edition that Desjardins analyst Chris Li has reaffirmed his "buy" recommendation for Canadian Tire. The Globe's David Leeder writes that Mr. Li trimmed his share target by $10 to $160. Analysts on average target the shares at $157. Mr. Li suggests that challenging discretionary spending will weigh on Canadian Tire's revenue for the next few quarters based on its fourth quarter 2023 financial results and management commentary. Mr. Li says in a note: "Given revenue pressures, continuing good margin management and expense control are key to keeping earnings stable. Management expects to keep retail margins largely in line vs 2023, helped by lower freight and product costs, partly offset by increased promotional intensity. While SG&A expenses surprised positively, declining 4 per cent year-over-year, we model expense being up 1 per cent in 2024, with headcount reduction, lower supply chain costs, productivity savings, one digital platform, etc, offsetting growth investments and inflation. We expect financial services earnings to decline by 5 per cent in 2024 due to higher net impairment losses. ... we expect further share price volatility until earnings visibility improves."