Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day. For breaking analyst actions prior to market open every day, read our Before the Bell morning report.
Street analysts are a bullish lot when it comes to Twitter Inc., but at least one thinks the stock frenzy has gotten out of hand.
Pivotal Research analyst Brain Wieser downgraded Twitter two notches, from a "buy" to a "sell" today, according to Bloomberg data. He did raise his price target after Twitter shares surged in its first day of trading – but only by $1 to $30 (U.S.)
According to the Bloomberg terminal, he's the only analyst recommending investors ditch the stock. As of late Thursday, there were seven analysts rating the social media darling as a "buy" and only one as a "hold."
The average target price is $39.22. That suggests the analyst community as a whole has been taken by surprise by Twitter's performance on the stock market today, where it jumped nearly 73 per cent to $44.90 (U.S.)
The stock is retreating a little in the post market, down 1.4 per cent at last check.
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RBC Dominion Securities analyst Greg Pardy downgraded Talisman Energy Inc. to "sector perform" from "outperform," citing the natural gas producer's "tepid progress" on asset sales and dampened hopes for a corporate split.
Talisman reported third-quarter results this week that were generally in line with expectations as the company committed to selling $2-billion to $3-billion in assets by mid-2014.
"On its third-quarter conference call, Talisman candidly indicated that it has assessed a corporate split with the assistance of external advisors," commented Mr. Pardy in a research note. "The company has concluded that a split would be very challenging to execute at this juncture, given concerns surrounding credit ratings, tax leakage, and legal considerations."
"In our view, with a corporate split less likely - at least for now, despite Carl Icahn's 7 per cent stake in the company - Talisman's risk/reward opportunity is less attractive," he said.
Mr. Pardy cut his price target to $13 (U.S.) from $14. The average target among analysts is $13.49, according to Bloomberg data.
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Several brokers have downgraded Iamgold Corp. after the producer reported a big drop in third-quarter earnings and revenue earlier this week due to lower prices for gold and higher operating costs.
Iamgold earnings fell 68 per cent during the quarter and revenues slid 13 per cent. The producer also announced it is re-developing its mine plan for the Westwood project in Quebec, resulting in a one-year delay in commercial production to the third quarter of 2014. Its dividend policy is also now under review.
HSBC lowered its rating to "neutral" from "overweight" and cut its price target to $5.30 from $6.20. Barclays lowered its rating to "underweight" from "equalweight" and cut its price target to $5 from $7. TD Securities cut its rating to "hold" from "buy" and slashed its price target to $6 from $7.50. Canaccord Genuity cut its price target to $6 as it downgraded its rating to "hold" from "buy."
"Overall, given the increasing lack of clarity with respect to the mine plans for all three of the company's core assets, we have lowered our target multiple from 0.70x net asset value to 0.65x NAV," commented Canaccord Genuity analyst Tony Lesiak.
"Current holders should note that IMG remains strongly levered to the gold price and the new mine plans may exceed current subdued expectations," he added.
The average target among analysts is $6.33.
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Great Canadian Gaming Corp. was downgraded from "outperform" to "neutral" by Credit Suisse analyst Colin Moore despite strong third-quarter earnings.
With the company's solid stock performance, up 42 per cent over the past three months, there is no longer "sufficient upside to warrant an outperform rating," he said.
In addition to steady earnings, the announced slot and racetrack extensions at existing Ontario facilities also helped to brighten the company's outlook.
"We remain constructive on the GC story, a company that has valuable assets in River Rock, generates significant free cash flow ($1.50 per share before redevelopment projects) and has capital flexibility to continue buying back shares or to participate in new Ontario gaming options," he said.
Mr. Moore increased his target to $14 (Canadian) from $11. The average analyst target is $14.19.
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Based upon the assumption that interest rates are as low as they're going to go, Desjardins Securities analyst Michael Goldberg maintained a "buy" rating on Industrial Alliance Insurance and Financial Services Inc.
The company's shares have enjoyed a steady incline over the past year, buoyed by positive earnings as the insurance sector recovers from the global financial crisis. So far in 2013, the company is leading the pack on investor return ahead of larger insurance giants such as Manulife Financial Corp. and Sun Life Financial Corp.
"With the likely prospect that interest rates have bottomed, we believe IAG's earning power and capital position support a shift to capital deployment mode, including a modest dividend increase," he said.
Mr. Goldberg raised his target to $52 (Canadian) from $44.50. Elsewhere, Credit Suisse raised its target to $49 from $45 and maintained a "neutral" rating, and CIBC World Markets raised its target to $52 (Canadian) from $46 and reiterated a "sector performer" rating.
The average analyst target is $49.22.
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CIBC World Markets analyst Robin Manson-Hing reaffirmed a "sector outperformer" rating on Avigilon Corp. after its third-quarter earnings beat expectations.
CIBC also aggressively raised its price target, to $32 (Canadian) from $20.
The company was able to generate strong sales in what is usually a seasonally weak quarter while operating costs were down quarter-over-quarter, generating strong margins.
"Unexpected enterprise penetration and growth rate increases in the U.S. and EMEA (Europe, the Middle East and Africa) were the primary reasons for the sales beat," the analyst said.
In the two years that the Vancouver-based tech company has been publically traded, shares have gone up over 300 per cent and that ride may not be over.
"Investors that have been sitting on the fence need to buy the shares as the risk/return is now more attractive," the analyst said.
The average analyst target is $26.36.
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In other analyst actions today:
Raymond James upgraded North American Energy Partners to "outperform" from "market perform" and hiked its target to $7.50 (Canadian) from $5.50.
BMO Nesbitt Burns upgraded Agrium to "outperform" from "market perform" and raised its price target to $100. CIBC World Markets maintained a "sector outperformer" rating but trimmed its price target to $109 (U.S.) from $113.
CIBC World Markets raised its price target on Magna International to $100 (U.S.) from $90 and maintained a "sector outperformer" rating.
RBC Dominion Securities cut its price target on Penn West Petroleum to $13 (Canadian) from $14 and maintained a "sector perform" rating.
Desjardins Securities hiked its target on Home Capital Group to $93.50 (Canadian) from $76.50 and maintained a "top pick" rating. RBC was less enthusiastic, maintaining a "sector perform" rating and nudging up its price target to $80 from $78.
RBC Dominion Securities raised its price target on Enbridge to $55 (Canadian) from $52 and maintained an "outperform" rating.
Canaccord downgraded Colossus Minerals to "hold" from "speculate buy" and cut its price target to 60 cents (Canadian) from $1.60.
CIBC World Markets raised its price target on Intact Financial to $73 (Canadian) from $70 and maintained a "sector outperformer" rating.
CIBC World Markets raised its price target on Franco-Nevada to $49 (Canadian) from $46 and reiterated a "sector outperformer" rating.
Industrial Alliance Securities cut its price target on Wi-Lan to $4.60 (Canadian) from $7.70 but maintained a "strong buy" rating.
RBC Dominion Securities initiated coverage on Pattern Energy Group with a $28 (U.S.) price target and an "outperform" rating.
Credit Suisse downgraded Devon Energy to "neutral" from "outperform" and cut its price target to $74 (U.S.) from $82.
Credit Suisse downgraded Ritchie Bros Auctioneers to "underperform" from "neutral" and cut its price target to $17 from $18.
UBS cut its price target on Whole Foods Markets to $65 (U.S.) from $71 and maintained a "buy" rating.
RBC Dominion Securities downgraded Aimco to "sector perform" from "outperform" and cut its price target to $31 (U.S.) from $34.
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For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities