The Globe and Mail reports in its Friday, Dec. 5, edition that Desjardins Securities analyst Chris Li has upgraded Loblaw to "buy" from "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Li gave his share target a $5 boost to $67. Analysts on average target the shares at $63.79. Mr. Li says while Loblaw's $800-million sale of PC Financial is not material to its overall scale, he thinks the move will lead to notable benefits from the simplification of its operational structure. Mr. Li says in a note: "Against a backdrop of ongoing macro uncertainties, we believe Loblaw's premium valuation is supported by its consistent execution, high earnings visibility (8– to 10-per-cent EPS growth) and attractive asset mix. Tailwinds from genericization of GLP-1 drugs, distribution centre efficiencies, supply chain as a service, T&T, etc also make the story appealing. ... We believe Loblaw's premium valuation (23 times forward P/E vs 19 times/15 times for Metro/Empire) is supported by its consistent execution, high earnings visibility (8– to 10-per-cent EPS growth) and attractive asset mix. ... Funds flow out of defence is a key risk. But as discussed above, we believe there is valuation support."