A FedEx driver carts packages in New York in this file photo.Mark Lennihan/The Associated Press
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day.
Raymond James analyst Frederic Bastien is upbeat on Brookfield Infrastructure Partners L.P. 's plan for 2014, which will focus on increasing funds from operations per unit in a "stable and sustainable manner".
After meeting with Brookfield CFO Bahir Manios in San Francisco last week, Mr. Bastien noted that the partnership's plan includes seeking out value investments, fully exploiting organic growth initiatives and recycling capital away from non-controlled assets and into ones offering potential for greater returns, as it did successfully last year with the sale of its PowerCo stake.
"Management is adamant it can still buy new transportation assets for value," writes Mr. Bastien, in a research note. "We know for example that BIP aspires to acquire European toll roads from large construction firms, assets that are non-core to commodity producers in Australia and South America, and more shipping terminals across the Americas. Given the success of its outreach program, we like BIP's chances."
Mr. Bastien maintains his "outperform" rating and $44 (U.S.) price target. The analyst consensus price target over the next year is $43.43, according to Thomson Reuters.
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CIBC World Markets analyst Paul Holden is resuming coverage of Element Financial Corp., calling the stock a "steal."
The analyst likes Element's position following its recent acquisition of PHH Corp.'s auto fleet leasing business.
Mr. Holden believes the PHH acquisition improves Element's financial and strategic positioning, and that the stock is not expensive at 13x 2015E.
He maintains his "sector outperformer" rating and $17.50 (Canadian) price target. The analyst consensus price target over the next year is $17.21, according to Thomson Reuters.
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An analysis of well data at Enerplus Corp.'s North Dakota operations shows an improved production outlook over the long term, RBC Dominion Securities analyst Greg Pardy said.
Enerplus updated investors with an audited assessment of its Bakken/Three Forks operation on Wednesday, showing a higher contingent resource estimate, expanded planned future drilling, and improved well economics.
"In the wake of solid execution and improved production growth visibility over the past couple of years which have fuelled cash flow multiple expansion, Enerplus's share price has risen appreciably since the end of 2012," Mr. Pardy said.
He raised his price target on Enerplus to $27 (Canadian) from $25, while maintaining a "sector perform" rating. He noted that the stock's run has moved the shares into fair value territory, but that either a pullback in share price or a dividend increase could make for a more bullish case on Enerplus. The analyst consensus price target over the next year is $26.23, according to Thomson Reuters.
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The past few months have seen a shift in tone among FedEx Corp.'s management to emphasize greater discipline on costs, RBC Dominion Securities analyst John Barnes said.
"This change in strategy gives us greater confidence in the company's ability to deliver the bulk of its profit improvement targets and ultimately significant earnings growth over a multi-year timeframe," Mr. Barnes said.
Cost reductions are driving FedEx's earnings estimates higher, said Mr. Barnes, who upgraded FedEx stock to "sector perform" from "underperform" and raised his price target to $155 (U.S.) from $125. The analyst consensus price target over the next year is(U.S.) $154.61, according to Thomson Reuters.
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Gildan Activewear Inc.'s acquisition of Doris Inc., a Montreal-based hosiery company, should help to boost Gildan's earnings outlook, Desjardins Securities analyst Chase Bethel said.
Gildan announced the $110-million (Canadian) deal on Thursday, which should prove complementary to Gildan's apparel strategy, Mr. Bethel said.
"It enables Gildan to better target the women's branded basic apparel market. Moreover, Doris also offers Gildan the potential to open doors from a distribution channel perspective in both Canada and the US."
Mr. Bethel is maintaining his "buy" rating and $75 price target on Gildan, but said he will refine his earnings estimates once more information on the acquisition is available. The analyst consensus price target over the next year is $60.64, according to Thomson Reuters.
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In other analyst actions:
CIBC World Markets has raised its target price for Canadian Natural Resources to $54 (Canadian) from $52.
Canaccord Genuity is downgrading Parex Resources to "hold" from "buy".
CIBC World Markets is raising its target price for Asanko Gold to $3.25 (Canadian) from $3.
Raymond James is downgrading Cameco Corp. to "market perform" from "outperform".
Canaccord Genuity is raising its price target for Canacol Energy to $12.50 (Canadian) from $12, maintaining "buy" rating.
RBC Capital Markets is raising its price target for Canyon Services Group to $23 (Canadian) from $20, maintains "outperform" rating.
Cequence Energy : NBF is raising its target price for Cequence Energy to $3.85 (Canadian) from $3.60, maintaining "outperform" rating.
Raymond James has cut its target price for Denison Mines Corp. to $2 (Canadian) from $2.30, maintains "outperform" rating.
Raymond James cut its target price for Kivalliq Energy Corp. to $0.30 (Canadian) from $0.50.