New Flyer Industries Canada ULC, Winnipeg. Heavy-duty truck manufacturing; 1,288 employees; average age: 42. Holds an annual staff wellness week that includes flu shots and nutrition classes.
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day.
Bird Construction Inc. is looking expensive because of its exposure to the oil sands and mining, said Canaccord Genuity analyst Yuri Lynk.
"Management remains best in class, and investors can continue to expect attractive dividend payments of 6.33 cents per month (a 5.7 per cent annualized yield) and the downside protection afforded by Bird's solid balance sheet ($63-million in net cash)," he wrote in a research note. "However, the company's greater relative exposure to oil sands and general mining causes us to reduce our earnings before interest, taxes, depreciation and amortization (EBITDA) forecast as we believe backlog likely peaked this year."
Bird trades at 7.1 times estimated 2015 EBITDA, compared with Aecon Group at 5.6 times and Stuart Olson at 5.2 times, Mr. Lynk said.
He downgraded Bird to "hold" from "buy" and lowered his target price to $14 from $16. The analyst consensus price target over the next year is $15.67, according to Thomson Reuters estimates.
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Eastern Platinum Ltd. faces "many questions" after Hebei Zhongbo reportedly offered to buy some of its South African assets for $225-million (U.S.), said Raymond James analyst Alex Terentiew.
"The deal, if it indeed closes, implies a price of $3 per share, representing a whopping 241 per cent premium to the November 6th close and a further 69 per cent upside to where the stock closed on Friday," he noted. "We have several reservations, however, about the deal and have thus placed our rating Under Review until we can clarify them. Failure to close the deal or provide further clarity on it may expose ELR to litigation risk."
Mr. Terentiew earlier rated the stock "market perform." The analyst consensus price target over the next year is $0.94, according to Thomson Reuters estimates.
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IGM Financial Inc. shares are poised to rise after it surprised investors with a dividend hike on Friday, said Desjardins analyst Gary Ho.
"In our view, the 5 per cent dividend increase showed confidence in management's earnings and free cash flow outlook. In addition, clarity around regulatory changes should improve sentiment on the stock," he wrote in a research note. The stock offers a 4.8 per cent dividend yield.
"Management believes Investors Group fees remain competitive in the advice channel, signalling no imminent pricing pressure, in our view. That said, expenses could trend higher over the next two quarters, partly driven by higher seasonal spending in the fourth quarter and the first quarter."
Mr. Ho raised his price target to $54 from $53 and rates the stock "buy." Canaccord Genuity analyst Scott Chan also raised his target price to $54.00 from $51.00. National Bank analyst Shubha Khan raised his rating to "outperform" from "sector perform," with a 12-month target price of $55.00 per share.
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New Flyer Industries Inc. posted decent quarterly results last week, but muted demand could restrain the company's growth over the next year, Canaccord Genuity analyst David Tyerman said.
New Flyer, which is the biggest heavy-duty bus manufacturer in North America, is likely to experience static production rates, the analyst said.
"Both bus manufacturing and aftermarket businesses remain highly competitive, as competitors still try to rebuild backlogs. The outlook may be brightening, but not enough to enable production rate increases."
Mr. Tyerman downgraded New Flyer to "hold" from "buy" and maintained a $14 (Canadian) target price. The analyst consensus price target over the next year is $12.90, according to Thomson Reuters estimates.
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Artis Real Estate Investment Trust looks more like a blue-chip REIT each day, says Desjardins Capital Markets analyst Michael Markidis.
"We continue to like this name for its (1) geographic focus on western Canada and the US, (2) continuing efforts to improve the overall quality of the portfolio, (3) strengthening balance sheet, and (4) reasonable valuation."
Mr. Markidis said third-quarter 2014 results were in line with his expectations and that a currency tailwind will likely abate in 2015, potentially moderating same-property net operating income growth.
He maintained his "buy" rating and $17.50 (Canadian) target price. The analyst consensus price target is $17.16, according to Thomson Reuters.
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In other analyst actions:
-- Alderon Iron Ore Corp. was downgraded to "sector perform" from "outperform" at RBC Capital by equity analyst Fraser Phillips. The 12-month target price is $0.60 per share.
-- Ainsworth Lumber Co. Ltd. (ANS CN) was downgraded to "market perform" from "outperform" at Raymond James by equity analyst Daryl Swetlishoff. The 12-month target price is $2.75 per share. Read more in Today's Small-cap Stocks To Watch.
-- AuRico Gold Inc. was raised to "buy" from "hold" at Canaccord Genuity by equity analyst Rahul Paul. The 12-month target price is $5.00 per share.
-- Big Rock Brewery Inc. was downgraded to "market perform" from "buy" at Cormark Securities by equity analyst Marc Robinson. The 12-month target price is $14.50 per share.
-- CAE Inc. was downgraded to "market perform" from "buy" at Cormark Securities by equity analyst David Newman. The 12-month target price is $15.75 per share.
-- Canadian Energy Services & Technology Corp. was downgraded to "hold" from "buy" at Industrial Alliance by equity analyst Elias Foscolos. The 12-month target price is $9.00 per share.
-- Emera Inc. was downgraded to "hold" from "buy" at TD Securities by equity analyst Linda Ezergailis. The 12-month target price is $38.00 per share.
-- Essential Energy Services Ltd. was raised to "strong buy" from "outperform" at Raymond James by equity analyst Andrew Bradford. The 12-month target price is $3.00 per share.
-- High Liner Foods Inc. was downgraded to "hold" from "buy" at Beacon Secs by equity analyst Michael Mills. The 12-month target price is $25.00 per share.
-- Interfor Corp. was raised to "action list buy" from "buy" at TD Securities by equity analyst Sean Steuart. The 12-month target price is $24.00 per share.
-- Perpetual Energy Inc. was downgraded to "hold" from "buy" at TD Securities by equity analyst Aaron Bilkoski. The 12-month target price is $1.70 per share.
-- Stella-Jones Inc. was downgraded to "sector Perform" from "outperform" at RBC Capital by equity analyst Sara O'brien. The 12-month target price is $35.00 per share. It was
was raised to "action list buy" from "buy" at TD Securities by equity analyst Michael Tupholme. The 12-month target price is $41.00 per share.
-- West Fraser Timber Co. Ltd. was downgraded to "sector perform" from "sector outperform" at CIBC by equity analyst Mark Kennedy. The 12-month target price is $64.00 per share.
-- WesternZagros Resources Ltd. was downgraded to "sector perform" from "outperform" at RBC Capital by equity analyst Al Stanton. The 12-month target price is $1.00 per share.
- With files from Bloomberg News