Reuters
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.
Canaccord Genuity upgraded Tiffany & Co. to "hold" from "sell" while boosting its price target to $83 (U.S.) from $65 on the belief that the recent trend of improved margins at the high-end retailer will continue.
"TIF has generated notable margin expansion in the last two quarters after seven consecutive periods of contraction," commented Canaccord analyst Laura Champine in a research note. "We think our prior gross margin outlook for Q4 and beyond was conservative given persistent metal and diamond cost deflation and price increases that have only recently begun flowing through the P&L (profit and loss statement)."
She raised her earnings per share estimate for fiscal year 2014 by 41 cents to $4.51, which is well above consensus of $4.25.
"Our longer-term projections also reflect further margin opportunity through fixed cost leverage and product mix as new products aim to revive the silver business," she added.
The average analyst target is $89.57 (U.S.).
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Bernstein Research issued a "cautious upgrade" for BlackBerry Ltd. to "market perform" from "underperform" with a price target of $5.50 (U.S.).
While pointing out that downside risk is limited, senior analyst Pierre Ferragu said areas of concern remain, particularly cash-burn rates.
"As we expected, Fairfax's attempt to take out Blackberry has failed, driving the stock to all-time lows. We believe the near term will be very challenging, and we model almost 800-million burnt in this quarter alone," said Mr. Ferragu.
Mr. Ferragu believes an inability to accurately attach a value to the company's assets -- estimates of which range from $6-billion to $13-billion -- is holding the company back.
Mr. Ferragu explains that this wide valuation range is mainly a result of confusion over how much BlackBerry Messenger is worth (between $500-million and $5.5-billion). His advice for BlackBerry: Sell BBM now, before the "messaging bubble" bursts.
He previously had a $4.50 price target on BlackBerry. The average analyst target is $7.10 (U.S.), according to Thomson Reuters.
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RBC Dominion Securities analyst Stephen D. Walker treated Lake Shore Gold Corp. to an upgrade after the company successfully completed its mill expansion in Timmins, Ont., delivered two months of solid operating results, and raised its 2014 production guidance.
Mr. Walker elevated his rating to "sector perform" from "underperform" and also hiked his price target to 75 cents (Canadian) from 50 cents.
"With an improvement in grades, now in line with reserve grades, we forecast sufficient free cash flow to repay debt obligations and strengthen the balance sheet," he commented.
Last week, Lake Shore said its gold production should come in between 160,000 and 180,000 ounces in 2014, which was above its previously forecasted range of 140,000 to 160,000 ounces.
The average analyst target is 63 cents.
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Alaris Royalty Corp. is having a rough day - both in the stock market and in the analyst community - after announcing late Friday that its partner SHS Services Management has filed for receivership due to operational challenges.
Shares are down 4 per cent at mid-morning - and at least two analysts cut their price targets on the stock.
Alaris is a private equity investment firm that provides alternative financing to a diversified range of private businesses in North America. SHS Services Management is just one of many its many investments, but the news still signals caution for investors, said analysts.
"While SHS has an insignificant impact to Alaris' financials, it marks Alaris' first partner to enter receivership and serves as a test of Alaris' model," said Raymond James analyst Theoni Pilarinos, who downgraded the stock to "market perform" from "outperform" while cutting the price target to $34.50 (Canadian) from $39.75.
"While SHS has no debt, it also has very little assets and consequently Alaris does not expect a meaningful recovery of its contribution. Based on this case, we believe it is fair to say that Alaris' investment values are tied to the fate of its partners' profitability," the Raymond James analyst said.
Alaris' diversification will continue to serve as a steady source of cash flows, but as the company continues to grow, it will inevitably face its share of challenges, the analyst said. "The key, of course, is to ensure that there are more winners than losers."
RBC Dominion Securities also cut its price target on Alaris, to $42 from $44, but reiterated an "outperform" rating.
"This is a disappointing outcome, which we believe will likely have a greater impact on investor sentiment than on actual financial performance (SHS represented about 3 per cent of invested assets)," said RBC analyst Anthony Jin. "Despite the setback, we continue to like the long-term risk/reward and view further share weakness as a buying opportunity."
The average analyst target is $40.14.
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An agreement that will once again give Theratechnologies Inc. U.S. marketing rights to the Egrifta drug is a significant positive for the company, providing it with improved economics and full control over the marketing strategy, said Canaccord Genuity analyst Neil Maruoka.
Mr. Maruoka raised his price target to 65 cents (Canadian) from 30 cents. But he maintained a "hold" rating, commenting that "continued uncertainty around the potential for additional global approvals, and limited visibility of US Egrifta sales, tempers our view."
The drug is being proposed for the treatment of excess abdominal fat in some HIV patients.
The average analyst target is 55 cents.
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In other analyst actions:
RBC Dominion Securities raised its price target on Secure Energy Services to $20 (Canadian) from $17 and reiterated a "sector perform" rating.
Goldman Sachs upgraded ExxonMobil to "buy" from "neutral" and raised its price target to $109 (U.S.) from $96.
Evercore Partners upgraded Citigroup to "overweight" from "equal weight" and raised its price target to $58 from $53.
Jefferies raised its price target on Apple to $650 (U.S.) from $600 and reiterated a "buy" rating. Morgan Stanley raised its target to $630 from $585 and maintained an "overweight" rating.
Bernstein upgraded Yum Brands to "outperform" from "market perform" and raised its price target to $85 (U.S.) from $75.
Evercore Partners upgraded Charles Schwab to "equal weight" from "underweight" and raised its price target to $25 (U.S.) from $19.50.
BMO Nesbitt Burns downgraded Nielsen Holdings to "market perform" from "outperform" but raised its price target to $45 (U.S.) from $43.
SunTrust Robinson Humphrey downgraded Twitter to "neutral" from "buy" and reaffirmed its $50 (U.S.) price target. Wells Fargo also downgraded the stock, moving to an "underperform" rating from "market perform," with a price target range of $36 to $39.
BMO Nesbitt Burns hiked its target on Noble Energy to $75 (U.S.) from $62 and reiterated a "market perform" rating.
UBS raised its price target on Expedia to $74 (U.S.) from $70 and maintained a "buy" rating.
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For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities