A roundup of some of the North American equities making moves in both directions today
On the rise
MAG Silver Corp. (MAG-T) jumped 0.8 per cent in early afternoon trading on Tuesday a day after announcing the discovery of a northeast-oriented “Venadas Vein” within its Minera Juanicipio joint venture property, which the company said suggests “considerable depth potential.”
MAG owns a 44-per-cent stake in the Mexican venture, which it shares with Fresnillo plc.
In a research note released Tuesday morning, Raymond James analyst Tara Hassan said: “The drill results reported by MAG Silver continue to demonstrate the potential within the Juancipio land package with the discovery of two new mineralized veins. We are particularly encouraged by the discovery of the Venadas which is the first east-oriented vein sitting within the Juanicipio land package, presenting another exploration target. While we continue to focus on the project’s production timeline, the substantial exploration potential at the project may contribute further upside to the LoM economics. With a construction decision for Juanicipio on the horizon, we believe MAG is positioned to attract a market re-rating as the company’s flagship project transitions to production.”
Shares of Aurora Cannabis Inc. (ACB-T) rose 9 per cent after an equity analyst at Cowen initiated coverage of the stock with an “outperform” rating. Cronos Group Inc. (CRON-T) was up 4.6 per cent after receiving a “market perform” recommendation.
A pair of U.S. retailers jumped in the morning trading after releasing annual earnings forecasts that exceeded expectations.
Target Corp. (TGT-N) rose 5.1 after reporting better-than-anticipated sales from the key holiday season.
For the fourth quarter, the Minneapolis-based company said comparable online sales grew 31 per cent year-over-year, while in-store traffic rose 4.5 per cent. Its overall comparable sales, that included both in-store and digital sales, rose 5.3 per cent, exceeding the Street’s consensus estimate of 5.08 per cent.
The company now projects 2019 adjusted profit between US$5.75 and US$6.05 per share, above analysts’ estimate of US$5.61 per share.
“Target’s strategic initiatives ...are clearly bearing fruit, with its online push continuing to generate impressive gains,” Moody’s analyst Charlie O’Shea told Reuters.
On the better-than-expected quarterly results, driven partially by new partnerships with popular apparel brands, Kohl’s Corp. (KSS-N) was up 7.1 per cent.
The Wisconsin-based company is projected fiscal 2019 earnings of between US$5.80 and US$6.15 per share, topping the Street’s US$5.77 estimate.
Crew Energy Inc. (CR-T) rose 4.8 per cent after receiving an upgrade from an equity analyst at Raymond James. “The combination of strong recent well results, the concentration of capex early in the calendar year and the backstopping of that aggressive capital with a non-core asset sale gives us reason to upgrade the stock,” said Kurt Molnar.
Papa John’s International Inc. (PZZA-Q) sat 4.2 per cent higher after founder John Schnatter has agreed to leave the board as part of a settlement agreement, ending an acrimonious battle for control.
Chevron Corp. (CVX-N) increased 0.3 per cent after announcing Tuesday morning it expects its annual production to grow between 3 per cent and 4 per cent through 2023. The company is projecting shale production from the Permian basin to reach 600,000 barrels per day (bpd) by the end of 2020, and 900,000 bpd by the end of 2023.
In the fourth quarter, the company’s production in Permian, the top shale region in the United States, was 377,000 barrels per day, up 84 per cent year-over-year.
“Chevron is in an exceptional position to deliver industry-leading value to shareholders,” said chairman and chief executive officer Michael Wirth in a release. “Our advantaged portfolio is driving strong production growth with lower execution risk, higher cash flow and increased cash returns to shareholders.”
On the decline
General Electric Co. (GE-N) plunged 5.9 per cent after it on Tuesday it expects free cash flow from its industrial business to be negative in 2019, due largely to continuing weakness in its power unit.
Already down 10 per cent since Friday, shares of Tesla Inc. (TSLA-Q) continued to fall on Tuesday as China suspended customs clearance for its Model 3 electric cars, citing various irregularities, including improper labeling of the vehicles, according to a report from financial publication Caixin.
The electric carmaker later announced authorities had accepted its plan to remedy the problems.
“Selling into China has clear hurdles and this is a reminder of the pitfalls when betting on growth in the region,” Wedbush Securities analyst Daniel Ives said.
“The hope is this issue can be smoothed out quickly otherwise it becomes more of a black eye for Tesla and agita for investors.”
With files from staff and wires