Dipsy, Tinky Winky, Laa-Laa and Po are returning to the small screen. DHX Media of Halifax has signed a deal to produce 60 new episodes of Teletubbies for broadcast in the U.K.
Inside the Market's roundup of some of today's key analyst actions. This file will be updated often during the trading day so check back for new details.
DHX Media Ltd.'s loss of Disney content sparked a massive sell-off of the stock on Thursday that was overly harsh, according to TD Securities.
"We believe that the market has essentially assumed the worst on a number of recent developments," said analyst Bentley Cross.
The loss of Disney content to Corus Entertainment, according to the analyst, is comparable to the situation TSN was in after the massive Rogers Communications Inc.'s deal with the National Hockey League.
"We will not know how the economics work out until we get through the first couple of seasons, but TSN has been able to protect its rating base (ratings were up year over year in Q4/14, even without World Juniors) through highlighting other content (NFL, World Juniors, Grey Cup, etc.)," he said.
By sending shares down 7.5 per cent on Thursday, the market has assumed that DHX TV division's earnings before interest, taxes, depreciation, and amortization will fall by about 30 per cent, according to Mr. Cross's calculations.
As such, the shares are attractively priced.
The analyst upgraded the stock to "buy" from "hold" and maintained a $10 (Canadian) price target.
The average analyst price target is $9.84.
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Canaccord Genuity analyst Dvai Ghose is reducing 2015 and longer-term forecasts for Rogers Communications Inc., expecting larger-than-forecast costs for wireless customer retention and difficulties in meeting cable primary service unit (PSU) results.
Mr. Ghose expects "strong" revenue growth in the first quarter of 2015 driven by Rogers' new National Hockey League contract. However, a consolidated adjusted EBITDA of $1.17-billion is only a year-over-year increase of 0.8 per cent.
Going forward, the analyst said Rogers will face "unusual" pressure from cable subscribers in the wake of the CRTC's decision to eliminate a 30-day notice period for the cancellation of services. Mr. Ghose forecasts a loss of 38,503 PSUs, compared to 10,000 net adds in the first quarter of 2014.
He also expects high wireless churn with a net loss of 20,000 subscribers due to "poor service and overly aggressive multi-year promos in 2013." He forecasts a 1.9 per cent year-over-year increase in network revenue but an adjusted wireless EBITDA of $786-million, a decrease of 0.5 per cent year over year based on increased retention expenses.
"While longer term shareholders may be rewarded, especially given RCI's discernible discount to peers, we remain cautious over the near to medium term," said Mr. Ghose.
He reduced his price target to $46 from $48 (Canadian) and maintained a "hold" rating. The consensus price is $45.43, according to Thomson Reuters.
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Raymond James analyst Kurt Molnar has revised his forecasts for Peyto Exploration & Development Corp. following the closing of its previously announced bought deal, worth $172.5-million.
Peyto plans to utilize the proceeds from the offer to pay down debt.
"We would anticipate a higher level of spending from Peyto for more drilling or perhaps acquisitions but we have no clarity to order of magnitude or timing in the short term at least," said Mr. Molnar.
Adjusting for the higher share count and a lower interest expense, he reduced his price target from $44 from $43.50 (Canadian). The analyst consensus is $40.32. Mr. Molnar maintained his "outperform" rating.
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Pembina Pipeline Corp. (PPL-T;PBA-N;) was initiated with a "neutral" rating at Credit Suisse.
Keyera Corp. (KEY-T) was initiated with a "neutral" rating at Credit Suisse.
Trilogy Energy Corp. (TET-T) was rated a new "underperform" at Credit Suisse.
Bonterra Energy Corp. (BNE-T) was raised to "buy" from "hold" at TD Securities. The 12-month target price is $45 (Canadian) per share.
Africa Oil Corp. (AOI-T) was raised to "outperform" from "sector perform" at RBC Capital. The 12-month target price is $4.50 (Canadian) per share.
Blackbird Energy Inc. (BBI-X) was rated new "buy" at Dundee. The 12-month target price is 35 cents (Canadian) per share.
AMC Entertainment Holdings Inc. (AMC-N) was rated new "sector perform" at RBC Capital. The 12-month target price is $40 (U.S.) per share.
Carmike Cinemas Inc. (CKEC-Q) was rated new "outperform" at RBC Capital. The 12-month target price is $41 (U.S.) per share.
Cinemark Holdings Inc. (CNK-N) was rated new "outperform" at RBC Capital. The 12-month target price is $55 (U.S.) per share.
EMC Corp. (EMC-N) was raised to "outperform" from "market perform" at Sanford Bernstein. The target price is $32 (U.S.) per share.
Goldman Sachs Group Inc (GS-N) was lowered to "market perform" from "outperform" by KBW. The target price was raised from $210 to $195 (U.S.) per share.
Splunk Inc (SPLK-N) was rated "buy" by DA Davidson. The 12-month target price is $83.00 (U.S.) per share.
Xcel Energy Inc (XEL-N) was raised to "buy" from "hold" at Argus. The target price is $42.00 (U.S.) per share.
USG Corp (USG-N) was downgraded to "buy" from "strong buy" at CL King. The 12-month target price is $38 (U.S.) per share.
With files from Bloomberg News