Inside the Market’s roundup of some of today’s key analyst actions
RBC Dominion Securities’ Sam Crittenden thinks First Quantum Minerals Ltd.’s (FM-T) recent financing deals provide “the balance sheet relief to focus on near term copper growth with the S3 expansion at Kansanshi and recover value in Panama in the form of a restart or through arbitration.”
While he emphasized the dispute around its Cobre Panama mine ”remains the key wildcard,” calling it “the $20-billion question,” the equity analyst sees “see more upside risk than downside” in the company’s current valuation, leading him to upgrade its shares to “outperform” from “sector perform” on Monday.
“We estimate FM shares are currently pricing in roughly 25 per cent of the full potential value of Cobre Panama,” said Mr. Crittenden in a research note. “If the mine were to restart, our NAVPS [net asset value [er share] for FM would be approximately $30 ($23/share for CP using 8 per cent and $4.00/lb copper). This suggests substantial upside potential if FM is able to negotiate a restart of the mine (this may require concessions which could reduce our estimate). If not, we also see the potential to re-coup value through international arbitration.
“There is still considerable uncertainty around the outcome in Panama and the upcoming election on May 5th could provide more direction. The first debate happened this week and the candidates’ responses on the mine ranged from keeping it shutdown to ‘putting it to work for the people’ following a public consultation. We expect a steady flow of news and quotes over the next 2 months and we could get a better sense of the odds of a restart post the election. At the same time, the international arbitration proceedings are underway with FM seeking US$20-billion (C$32/share) plus damages and interest. This could take several years to play out and the amount recovered is uncertain; however, we believe this provides some backstop in value.”
Mr. Crittenden thinks the expansion of its Kansanshi mine in northwestern Zambia can provide a “path” to positive free cash flow by 2026, projecting the company’s copper production will rise to 427,000 tons in 2025 from 370,000 in 2023, excluding any contributions from Cobre Panama.
“We estimate FCF of negative $62-million in 2024, negative $238-million in 2025 and $313-million in 2026 (at spot prices and assuming CP at zero), with adequate liquidity and covenant headroom until then,” he said.
The analyst raised his target for First Quantum shares by $1 to $18 to reflect the impact of its fourth-quarter results and financing deals announced last week, which included the close of both a $1.150-billion bought deal offering and $1.6-billion senior secured second lien notes offering. The average target on the Street is $16.03, according to LSEG data.
Elsewhere, BMO’s Jackie Przybylowski raised her target to $17.50 from $17 with an “outperform” rating.
“The comprehensive refinancing package announced February 21, 2024 immediately removed the near-term financing overhang that had weighed on the First Quantum outlook and share price since Panama overturned Law 406 in late October 2023,” she said. “Stronger balance sheet allows management to negotiate from a position of strength going forward — both with Panama (in terms of mine restart and/ or arbitration) and with further asset sales or debt restructuring.”
======
Following “strong” fourth-quarter 2023 financial results and “impressive” guidance for the current fiscal year, AtkinsRéalis (ATRL-T) is “entering 2024 with flying colours,” according to Desjardins Securities analyst Benoit Poirier.
“We see several catalysts ahead for this turnaround story that are not accessible to its peers in the engineering space — incremental investors, multiple re-rating, LSTK completion, divestiture of Linxon, balance sheet deleveraging following the Highway 407 sale and elevated public work exposure vs peers, as well as nuclear expertise,” he said. “ATRL remains our preferred E&C name.”
On Friday, the Montreal-based professional services and project management company, formerly known as SNC-Lavalin Group Inc., announced its Engineering Services and Operation & Maintenance (O&M) segments will be merged and managed by region. The moved came as it revealed guidance that Mr. Poirier said displayed “the strongest organic growth in our E&C coverage universe.”
“ATRL introduced its formal 2024 guidance, with Engineering Services (with O&M) organic growth of 8‒10 per cent (above consensus of 6.7 per cent) and Nuclear organic growth of 12‒15 per cent (above consensus of 6.2 per cent),” he said. :This is extremely impressive on three fronts: (1) above Street expectations; (2) above 2024 organic growth targets for WSP and STN; and (3) above ATRL’s previously targeted 2022–24 range. Additionally, the Nuclear segment had stagnated somewhat since ATRL acquired the CANDU IP from the Canadian government, so this new growth guidance signals a clear turning point in demand.
“Operating cash flow [is] expected to be more than $400-million in 2024; intent to sell Linxon business confirmed. While the MONARK investment capex will be a bigger drag on cash, we continue to forecast the inflection point for positive FCF occurring in 2024 (at C$233m) after inputting the new targets in our model, with the stronger organic growth offsetting the slight uptick in capex investment and LSTK drag.”
After increasing his earnings per share projection for 2024 by 40 cents to $2.66, Mr. Poirier hiked his target for AtkinsRéalis shares to $65 from $53, reiterating a “buy” recommendation. The average is $57.33.
“We see significant potential for value creation if ATRL can successfully demonstrate the FCF generation potential of its Engineering Services business,” he said.
Other analysts making target adjustments include:
* National Bank’s Maxim Sytchev to $57 from $53 with an “outperform” rating.
“It’s been a number of quarters in a row now that the company has produced clean results,” he said. “$205-million of FCF in 2024 based on our calculation is a marked improvement vs. what we have seen over the last decade and sets up a GE-type revival that we discussed in Is there still ‘value’ in SNC? Depends on the path of FCF / engineering margin improvements). The big question is whether generalist investors who have stayed away from the name for years will now feel compelled to come back as an 11 times 2024 estimated EV/EBITDA multiple stands in contrast to peers at 15 times plus. We think some FOMO will start to materialize … margin improvements (nice to see the engineering guide / COO function intro), consistent FCF conversion and capital deployment are other big “buckets” of consideration for the market, at the moment.”
* Canaccord Genuity’s Yuri Lynk to $57 from $51 with a “buy” rating.
“ATRL finished the year strong, delivering industry-leading organic growth, substantial operating cash flow (OCF) that left its balance sheet with a 1.8 times debt/EBITDA ratio, and very encouraging guidance for 2024,” said Mr. Lynk. “Ex. Capital, ATRL trades at 17.9 times our 2024 PS&PM EPS estimate vs. peers at 20.5 times. We expect ATRL to continue to close this valuation gap as it completes its exit from LSTK legacy contracts and begins a tuck-in acquisition program. The increase to our target price is due to our upwardly revised estimates and six-month valuation period roll forward to our 2025 PS&PM EPS estimate. We use a 18 times P/E multiple before adding $15.00 for the Capital assets to set our target price, up from 17 times previously to reflect a steady narrowing with the peer group.”
* Scotia’s Michael Doumet to $66 from $57 with a “sector outperform” rating.
“The higher losses at LSTK was the only (minor) negative,” said Mr. Doumet. “Outside that, there is evidence across the board that ATRL is not only able to exceed investor expectations, but outgrow its peers. While there is history to consider, more and more, ATRL is looking like a premium asset trading at a discount multiple. ATRL’s Services trades at an implied multiple of 10 times EV/EBITDA on our 2024E, compared to its Canadian peers at 15 times. At some point a ‘catch-up’ story can go from trading at a discount (to reflect its inferior fundamentals) to a premium (as investors price-in the potential for more rapid growth). Right now, we think ATRL reflects too much of the former. ATRL continues to make progress in its transformation into a professional services pureplay. LSTK losses are winding down and, in 2024, net cash flow expectations are expected to near normalization as LSTK headwinds abate. As detractors to the story move into the background, what moves into the foreground is a company able to deliver double-digit organic growth in 2024, continue its journey of (catch-up) margin expansion, and recycle capital from non-core asset divestitures into accretive M&A.”
* Raymond James’ Frederic Bastien to $62 from $55 with an “outperform” rating.
“AtkinsRéalis closed out a pivotal year with better-than-expected 4Q23 results and in solid financial footing. Just as importantly, the firm pointed to industry-leading organic growth for 2024, healthy margin expansion for its combined Engineering Services and O&M segments, and the sale of its interest in Linxon (whose fixed-price assignments are misaligned with management’s focus on low-risk value-added work),” said Mr. Bastien. “From our perspective, these positive markers/catalysts are inappropriately reflected in today’s valuation. ATRL may not be put in the same category as engineering stalwarts WSP Global and Stantec for some time, but it is sure having success playing catch-up.”
* ATB Capital Markets’ Chris Murray to $60 from $53 with an “outperform” rating.
“ATRL delivered an impressive quarter, driven by high levels of organic growth in Engineering Services (ES) and Nuclear,” said Mr. Murray. “The Company issued 2024 guidance calling for organic growth and margin expansion, particularly in Engineering Services, with backlog growth indicative of a strong demand environment in key segments. Leverage levels are back below 2.0 times, positioning the Company to initiate M&A activity as part of its land & expand strategy over the near term, which we expect to be a focus on its investor day on June 13, 2024. Strong results and guidance reaffirm why ATRL remains our preferred name across our E&C coverage. While shares trade a discount to peers, we expect the gap to close in 2024 as ATRL delivers stronger FCF and begins to execute on inorganic growth opportunities.”
* RBC’s Sabahat Khan to $63 from $53 with an “outperform” rating.
“AtkinsRéalis delivered Q4 results well ahead of Street expectations and provided 2024 guidance reflecting revenue and earnings above our expectations heading into the print. We believe the company remains well positioned to deliver strong results through 2024, which should reflect continued progress in the base business + a number of potential catalysts (potential dispositions of 407 ownership interest/Linxon, LSTK recoveries). Improved balance sheet and the outlook for positive FCF in 2024 also highlight improving execution,” said Mr. Khan.
* BMO’s Devin Dodge to $55 from $46 with a “market perform” rating.
* TD Securities’ Michael Tupholme to $65 from $55 with a “buy” rating.
* CIBC’s Jacob Bout to $64 from $57 with an “outperformer” rating.
=====
National Bank Financial analyst Vishal Shreedhar thinks investors will be “looking to evaluate growth vectors” when Alimentation Couche-Tard Inc. (ATD-T) reports its third-quarter financial results on March 20.
“While fuel margins expansion has been a traditional driver for growth, ATD’s $10-billion F2028 EBITDA ambition looks to increasingly deliver growth through alternative vectors,” he said. “Last quarter, ATD suggested that pressure in cigarettes was a significant factor in softening merchandising sssg [same-store sales growth] in the U.S. We expect mitigating factors (growth in higher margin categories such as food, positive mix impact and solid beverage performance) to more than offset cigarette pressure.
“Our review of results/management commentary from Altria, a major tobacco industry participant, points to ongoing pressure in the category (trade-down, higher price sensitivity and negative cigarette volume growth, etc.). Excluding cigarettes, ATD suggested that U.S. merchandise sssg would have been 2 per cent last quarter (instead of negative 0.1 per cent reported). All else equal, we estimate that an additional 1 per cent of U.S. merchandise sssg could add $0.01 to Q3/F24 EPS.”
For the quarter, Mr. Shreedhar is earnings per share of 88 cents, rising from 74 cents during the same period a year ago and 2 cents higher than the current consensus forecast on the Street with Canadian merchandising same store sales growth of 1.5 per cent (versus 2.3 per cent in fiscal 2023) His projection of 20.0-per-cent year-over-year growth “largely reflects aggregate higher fuel margins/volume, aggregate merchandising growth, slight acquisition contribution and share repurchases, partly offset by higher SG&A, higher D&A and higher interest expense.”
“We expect higher year-over-year U.S. fuel margin and a fuel delta slightly below the recent historical average,” the analyst noted. “We expect North American fuel volume performance to be positive. U.S. government data on finished motor gasoline indicates volumes were higher by 1.7 per cent year-over-year during Q3/F24 while vehicle miles travelled increased by 2.2 per cent year-over-year (up to Dec. 2023). StatsCan data (up to Nov. 2023) indicates finished motor gasoline and distillate fuel oil volumes grew 1.1 per cent year-over-year. We model higher year-over-year Europe fuel margin; recall, fuel margin was pressured last year due to FX (approximately 3.0 cents per litre) and fuel market volatility.”
Seeing “multiple avenues for growth, Mr. Shreedhar raised his target for Couche-Tard shares to $89 from $87 to reflect an update his valuation period, maintaining an “outperform” rating. The average target on the Street is $86.81.
“If ATD achieves its F2028 targets, significant upside remains,” he said. “Although our estimates fall short of ATD’s goals, they still suggest significant growth. We model a five-year EBITDA CAGR [compound annual growth rate] of 5.7 per cent ending F2028.
“Our favourable view on ATD is driven by expectations of organic growth supported by various improvement initiatives (fuel, food/beverage, private label, data analytics/loyalty, procurement, organic network growth, cost optimization, etc.) as well as acquisition capture/synergies and capital return to shareholders. ATD is trading at 18.4 times our NTM [next 12-month] EPS vs. the five-year average of 17.8 times.”
Elsewhere, TD Securities’ Michael Van Aelst increased his target to $94 from $88 with a “buy” rating.
=====
Desjardins Securities analyst Doug Young sees the current valuation for Canadian Western Bank (CWB-T) as “compelling,” believing it is ”attractively positioned to deliver further NIM expansion, cost control, and disciplined credit and capital management.”
“Adjusted pre-tax, preprovision (PTPP) earnings were 2 per cent above our estimate (up 14 per cent year-over-year),” he said. “Some will be disappointed with the flat NIM this quarter, but it was flat for good reason— deposit growth outpaced loan growth. Expense management was a positive surprise, underscoring management’s commitment to delivering positive operating leverage for the year.”
On Friday, shares of the Edmonton-based bank slipped 1.8 per cent despite reporting earnings per share of 93 cents, which exceeded Mr. Young’s estimate by 2 cents and the consensus forecast on the Street by a penny.
“The beat was driven by lower-than-expected expense growth, resulting in an expense ratio of 49.2 per cent (vs our estimate of 50.4 per cent) and strong operating leverage of 7 per cent,” the analyst said. “While management’s confidence in delivering positive operating leverage for the full year has increased, expense growth for this year is still expected to be around mid-single digits. The 10.0-per-cent CET1 ratio was above our estimate of 9.8 per cent (consensus of 9.7 per cent). Management’s focus remains on organic growth. Share buybacks are not currently in the cards.”
After trimming his EPS estimate for 2024 and raising his 2025 expectation, Mr. Young lowered his target for the bank’s shares to $35 from $37, maintaining a “buy” recommendation. The average on the Street is $34.09.
Elsewhere, RBC’s Darko Mihelic cut his target to $32 from $34 with an “outperform” rating.
“CWB had a relatively clean quarter with a good expense result relative to our estimates, but PCLs [provisions for credit losses] were higher than we expected and there was a larger quarter-over-quarter increase in CWB’s impaired PCLs versus the other banks. Loans also declined quarter-over-quarter impacting loan growth. We move our estimates a sizable step down to reflect lower loan growth (bouncing later this year) and stable to declining NIMs with elevated losses for the near future,” said Mr. Mihelic.
=====
Canaccord Genuity analyst Mike Mueller thinks Highwood Asset Management Ltd.’s (HAM-X) “strong shareholder alignment with the high level of insider ownership and recent operational success should warrant a higher multiple” than its shares currently trade at.
Seeing recent acquisitions providing a “foundation for meaningful growth,” he initiated coverage of the Calgary-based oil and gas exploration and production company with a “buy” rating on Monday.
“Last year marked a transformative year for Highwood, closing three concurrent acquisitions for total consideration of $139-million in August 2023,” he said. “Through these acquisitions, Highwood added 4,000 boe/d [barrels of oil equivalent per day] of oil-weighted production in Alberta, with this year’s production expected to average 5,200 boe/d (reflecting growth of more than 25 per cent). Longer term, HAM plans to build on its existing production base towards the 30,000 boe/d mark, both organically through the drill bit and inorganically via M&A. While we expect the company to remain diligent in its assessment of potential acquisition targets to improve its FCF profile, outside of any transactions, we believe the current assets can generate meaningful FCF with over 10 years of drilling inventory while deleveraging in the near-term to exit this year with 1.1 times D/CF.
“Everything old is new again? Modern techniques unlocking value With this year’s production expected to average 5,200 boe/d, individual well results can have a meaningful impact on Highwood’s overall production base and FCF outlook. We believe the company’s recent developments have provided a glimpse into the potential the assets bring as it employs modern drilling and completion techniques, including multi-lateral, open-hole well designs and longer laterals with increased frac intensity.”
Mr. Mueller’s bullish stance centred on management having a significant “skin in the game.”
“As a relatively new entrant in the junior E&P space, it is worth noting Highwood’s strong level of insider ownership, better aligning management with shareholders,” he noted. “Collectively, Highwood’s management and directors own 35.5 per cent of the company’s fully diluted shares and 36.0 per cent of the basic shares outstanding with Executive Chairman Joel MacLeod controlling 29.6 per cent on a fully diluted basis, or 31.9 per cent of basic shares.”
He set a target of $8.75. The average is currently $8.88.
“Highwood will report Q4/23 results after market on April 16, 2024,” said Mr. Mueller. “Additionally, the company has an active H1/24 drilling program with three wells at Wilson Creek, one MLOH well at Brazeau, and one MLOH well being drilled on its legacy lands in eastern Alberta. Further, given the focus on acquisition-driven growth, we believe the potential for Highwood acquiring assets this year would be a meaningful catalyst for the stock considering the impact any significant acquisition would have to a producer of its size.”
=====
In other analyst actions:
* RBC’s Jimmy Shan lowered his target for Artis REIT (AX.UN-T) units to $6.50 from $7.50 with a “sector perform” rating, while TD Securities’ Jonathan Kelcher trimmed his target to $6.50 from $7 with a “hold” rating. The average is $7.
“Artis REIT reported FFO/unit of $0.25, down 17 per cent year-over-year, vs. RBC/Consensus of $0.27/0.27,” said Mr. Shan. “Not surprisingly, AX cannot find a buyer for entire REIT and is continuing with its disposition program with $572-million held for sale. Distribution was unchanged despite Q4 payout ratio at 107 per cent and Q4 reported AFFO declining 25 per cent year-over-year. We estimate distribution could survive ‘til ‘25 if we see lower rates, further asset sale closings to pay down debt and higher contribution from 300 Main. In the meantime, liquidity is tight but manageable as long as facilities are extended.”
* Desjardins Securities’ Chris MacCulloch increased his target for Athabasca Oil Corp. (ATH-T) to $5.50 from $5.25 with a “buy” rating, while Stifel’s raised his target to $5.75 from $5 with a “buy” rating. The average is $5.61.
“While acknowledging that valuation has begun to stretch as the stock continues rallying ahead of TMX line fill next month, we believe there is further upside to the extent that the company provides attractive organic growth visibility, peerleading capital returns, a pristine balance sheet and future optionality to ramp thermal production at Leismer and Corner toward 80,000 bbl/d,” he said.
* Mr. MacCulloch also hiked his target for Imperial Oil Ltd. (IMO-T) to $86 from $77 with a “hold” recommendation and . The average is currently $84.96.
On Imperial, he said: “Stellar mine performance at Kearl and improving crack spreads should lay the foundation for another year of robust capital returns, with visibility to exhausting another NCIB and a $1.5–2.0-billion SIB in 2H24 based on current strip prices after funding the recent 20-per-cent quarterly dividend increase. “However, we maintain our Hold rating given the limited potential return to our $86 target.”
* CIBC’s Krista Friesen raised her Badger Infrastructure Solutions Ltd. (BGDI-T) target to $50 from $46 with a “neutral” rating. Other changes include: Scotia’s Michael Doumet to $48 from $42.50 with a “sector perform” rating and Canaccord Genuity’s Yuri Lynk to $60 from $52 with a “buy” rating. The average is $49.61.
“The macroeconomic environment remains very supportive for Badger, with robust utility and construction spending that we believe should remain as such for the foreseeable future, driven by infrastructure renewal and expansion, the energy transition, and the trend towards safe digging,” said Mr. Lynk. “At the company level, management just delivered 2023 results that featured 20-per-cent revenue growth and 450 basis points (bps) of EBITDA margin expansion. We see growth moderating in 2024, but remaining in double digits, with margin expansion continuing such that our 2024 EPS estimate implies 73-per-cent growth and a further 26 per cent in 2025. Importantly, our 2025 EBITDA margin assumption of 26 per cent is conservatively 200 bps below the low end of management’s long-term target of 28-29 per cent.”
* Canaccord Genuity’s Matthew Lee increased his Black Diamond Group Ltd. (BDI-T) target to $11 from $9.50 with a “buy” rating, while Acumen Capital’s Trevor Reynolds bumped his target to $12.50 from $12 with a “buy” rating. The average is $11.67.
“On Friday, BDI reported Q4 numbers with results largely in line with our expectations,” Mr. Lee said. “Coming out of the quarter, we are more optimistic about the firm’s outlook on both sides of the business with MSS [Modular Space Solutions] benefitting from a more benign competitive environment and WFS [Workforce Solutions] expected to see progressively improving utilization. On the call, management highlighted the benefits of recent industry consolidation, suggesting that a more disciplined pricing environment could act as a tailwind for F24 rate expansion. On the WFS side, BDI’s Q4 results excepted revenues from the TMX or Coastal pipeline projects, which we believe gives the firm a solid base to grow from. While BDI has historically been open to the sale of WFS assets at sub 60 per cent utilization levels, we note that management appeared more optimistic about redeploying its fleet, suggesting strong demand in the segment. Overall, our estimates are increased post quarter.”
* CIBC’s Mark Jarvi reduced his Boralex Inc. (BLX-T) target by $1 to $40 with an “outperformer” rating, while BMO’s Ben Pham bumped his target to $37 from $26 with an “outperform” rating. The average is $39.80.
“The Q4/23 earnings report illustrates improved renewable production trends (101 per cent of LTA vs. 98 per cent last year) and a continued robust growth backlog (three new projects added totalling 162MW). At the same time, the development pipeline was boosted 5 per cent and 290MW of projects are expected to be commissioned this year (9 per cent vs. 3,078MW existing capacity). Combined with undemanding valuation (approximately 10.5 times vs. renewable peers ranging from 10-17 times) and strong balance sheet/conservative balance sheet, we’re maintaining our Outperform rating,” said Mr. Pham.
* Ahead of its March 20 earnings release, Stifel’s Daryl Young hiked his Boyd Group Services Inc. (BYD-T) target to $355, exceeding the $313.71 average, from $295 with a “buy” rating.
“We expect a solid Q4/23 and are optimistic for Boyd’s prospects in 2024, as it has now flipped the switch from post-pandemic recovery mode to playing offense, investing in both location growth and new scanning and calibration (’S&C’) services,” he sai. “In our view, the industry trends favouring Boyd, and the MSO/DRP business model, have arguably never been stronger, and we expect the cadence of industry consolidation to be front-and-center once again in 2024 (the year kicked off with CollisionRight, an 85+ location MSO, changing PE hands and industry leaders Caliber and Crash Champions both in the market issuing new credit). Furthermore, lingering investor concerns around Boyd’s ability to combat industry-wide labour shortages and insurer rate pressures appear to have abated, and the narrative has flipped from ‘Can Boyd ever get back to pre-pandemic margins?’ to, ‘How high can Boyd’s margins go with S&C?’.”
* Raymond James’ Michael Barth raised his CES Energy Solutions Corp. (CEU-T) target to $6.75 from $6.50 with a “strong buy” rating. The average is $5.54.
“CEU put up another strong quarter with revenue and margins coming in higher than both our expectations and consensus. The company continues to do little things well, with clear market share gains across most of their subsidiaries, increasingly efficient NWC management, and prudent capital allocation,” said Mr. Barth.
* RBC’s Keith Mackey bumped his Ensign Energy Services (ESI-T) target to $4 from $3.75 with an “outperform” rating. Other changes include: BMO’s John Gibson to $3.50 from $3 with an “outperform” rating and Stifel’s Cole Pereira to $2.75 from $2.50 with a “hold” recommendation. The average is $3.71.
“Ensign’s 4Q23 adj. EBITDA was 7 per cent ahead of consensus,” said Mr. Mackey. On the conference call, Ensign reiterated its focus on debt reduction, which the market may be beginning to appreciate given Friday’s strong share price reaction [up 13.4 per cent]. We have modestly raised our FY24/25 EBITDA (up 2 per cent/up 1 per cent) estimates on improved margins.”
* RBC’s Greg Pardy raised his MEG Energy Corp. (MEG-T) target to $32 from $31, above the $30.82 average, with an “outperform” rating. Other changes include: BMO’s Randy Ollenberger to $35 from $30 with an “outperform” rating, National Bank Financial’s Travis Wood to $32 from $30 with a “sector perform” rating and Desjardins Securities’ Chris MacCulloch to $30 from $27.50 with a “hold” recommendation.
“The stock continues building momentum with several important catalysts on the horizon, including the commissioning of TMX and achievement of the US$600-million corporate net debt floor,” said Mr. MacCulloch. “Although neither event should come as a surprise, both should be highly supportive of capital returns. Longer-term, we also expect the reintroduction of modest growth at Christina Lake to be favourably received.”
* Stifel’s Cody Kwong cut his Parex Resources Inc. (PXT-T) target to $31 from $32.75 with a “buy” rating. The average is $32.88.
* CIBC’s John Zamparo increased his Park Lawn Corp. (PLC-T) target to $21 from $20 with a “neutral” rating. The average is $25.25.
* BMO’s Devin Dodge bumped his Stantec Inc. (STN-T) target to $126 from $118 with an “outperform” recommendation, while TD Securities’ Michael Tupholme increased his target to $130 from $125 with a “buy” rating. The average is $124.
* Mr. Dodge also raised his WSP Global Inc. (WSP-T) target to $244 from $215 with an “outperform” rating, while Mr. Tupholme increased his target to $255 from $250 with a “buy” rating. The average is $236.93.
* Jefferies’ Lloyd Byrne raised his Suncor Energy Inc. (SU-T) target to $50 from $47 with a “hold” rating. The average is $51.74.
David Leeder