June 25, 2022

Contained in the Market’s roundup of a few of at present’s key analyst actions

ATB Capital Market analyst Chris Murray thinks a “extra cautious stance” on NFI Group Inc. (NFI-T) is important following its weaker-than-anticipated 2022 steerage, believing “the dangers and the binary nature of outcomes round covenant reduction alongside the unsure timing surrounding provide chains normalizing is more likely to weigh on the investability of shares for a while.”

Although he stays “optimistic on the longer-term demand surroundings,” Mr. Murray lowered his advice for its shares to “speculative purchase” from “outperform.”

On Thursday, the Winnipeg-based bus producer dropped 22.5 per cent after saying it expects adjusted earnings earlier than curiosity, taxes, depreciation and amortization of US$100-$130-million for the 12 months, nicely under the forecasts of each Mr. Murray (US$195-million) and the Road (US$191-million). It additionally slashed its quarterly dividend by 75 per cent (to 31 per share to five.31 cents).

“The stunning and far weaker-than-expected steerage displays administration’s expectations that offer chains are more likely to stay constrained all through 2022 with a extra significant restoration not anticipated till 2023,” stated Mr. Murray.

“A 75-per-cent dividend lower got here with This autumn/21 outcomes reflecting better uncertainty across the money circulate profile with administration confirming that discussions regarding additional covenant reduction stay ongoing with lenders. After the current debt/fairness deal, we see the Firm sustaining satisfactory liquidity to bridge itself to 2023 assuming the forbearance of lenders, that are described as supportive, though probably at an unknown price, which provides to the uncertainty for fairness holders.”

After its fourth-quarte 2021 outcomes exceeded expectations, Mr. Murray did emphasize a optimistic demand outlook helps NFI over the long run, noting: “Administration reaffirmed its 2025 steerage whereas reiterating that the reserving surroundings stays stronger than ever, underpinned by secular tailwinds round ZEBs and demand for public transit which is able to lengthen past present provide chain challenges with NFI Ahead led price reductions and aftermarket demand supporting a stronger margin profile over the medium time period.”

Decreasing his monetary estimates to account for the steerage, Mr. Murray lower his goal for NFI shares to $21 from $28. The common on the Road is $20.19.

Elsewhere, others making adjustments embrace:

* Scotia’s Mark Neville to $22 from $28 with a “sector outperform” ranking.

“NFI’s 2022 steerage got here in considerably under expectations as the corporate continues to face an unreliable/unpredictable provide chain, which is leading to decrease automobile deliveries and important manufacturing inefficiencies,” he stated. “Compounding the matter is a extremely specialised product and ‘Purchase American’ content material guidelines, making it more durable to seek out substitute suppliers. With a heavy debt load and the probability of one other near-term covenant breach, the corporate decreased its quarterly dividend by roughly 75 per cent and began negotiations with its lenders (re: additional reduction). The corporate additionally recognized different alternatives to cut back leverage (e.g., A/R factoring) that would present incremental help. Now we have made important downward revisions to our forecasts.”

* Nationwide Financial institution’s Cameron Doerksen to $19 from $26 with an “outperform” ranking.

“We concede that the This autumn report and 2022 outlook supplied up a lot to be detrimental about and few positives,” stated Mr. Doerksen. “Nonetheless, we nonetheless see worth within the inventory underpinned by sturdy demand drivers. We anticipate the inventory to stay pressured till there may be extra visibility on the availability chain, however our new goal nonetheless gives 28-per-cent upside from the present share worth.”

* Stifel’s Maggie MacDougall to $11.50 from $22 with a “promote” ranking.

“The unlucky conflict in Ukraine has compounded world provide chain points that have been already current. Moreover, inflation in uncooked materials costs seems to be accelerating, which must be thought-about and is more likely to current a tough pricing surroundings for NFI. Now we have decreased our 2022 forecast to be on the low finish of 2022 steerage,” she stated.

* CIBC’s Kevin Chiang to $18 from $25 with a “impartial” ranking.

* TD Securities’ Daryl Younger to $18 from $22.

* BMO Nesbitt Burns’ Jonathan Lamers to $21 from $27 with an “outperform” ranking.

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In response to current share worth weak point, Raymond James analyst Stephen Boland upgraded Goeasy Ltd. (GSY-T) to “sturdy purchase” from “outperform” ranking, seeing its enterprise remaining “pretty agnostic to any near-term charge will increase” and believing a “poorer financial backdrop may create further alternatives.”

“Importantly, administration lately highlighted that rates of interest would want to extend by 2 per cent earlier than any materials affect could be felt within the enterprise (resulting from ground agreements and stuck charges in place on present funding sources),” he stated. “As well as, extra prime publicity is predicted to result in decrease funding prices over time.”

“We additionally spotlight the potential of conventional lenders tightening up their credit score strains in periods of market downturns, forcing some debtors to hunt various sources of financing. Now we have supplied an EPS sensitivity to a change in Internet charge-offs (NCO) and located {that a} 1-per-cent change solely impacts our EPS estimate by 9 per cent so not overly materials. Our present NCO estimate is 9 per cent for 2022 in the course of administration’s 8-10-per-cent steerage.”

Believing the Mississauga-based agency’s inventory “seems oversold and is now buying and selling under historic ranges regardless of a powerful progress outlook,” Mr. Boland maintained a $207 goal. The common goal is $228.13.

“With GSY down 30 per cent year-to-date — versus the TSX at up 1.1 per cent — and now buying and selling at a reduction to historic averages, we see little change within the narrative and as soon as once more remind traders to benefit from what we view as a really engaging entry level for the inventory,” he stated. “Regardless of the current bout of market volatility, our outlook for the basics of this enterprise stay largely unchanged. Administration lately reiterated its 3-year steerage and expects to ship 20-per-cent CAGR mortgage progress (on the midpoint) by way of 2024. We imagine the enterprise is nicely insolated from considerations concerning rate of interest will increase and any deterioration in credit score circumstances.”

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Within the wake of the discharge of its largely in-line fourth-quarter 2021 monetary outcomes, a trio of fairness analysts on the Road lowered their suggestions for Wesdome Gold Mines Ltd. (WDO-T).

After the bell on the Thursday, the Toronto-based miner reported adjusted money circulate per shares of 26 cents, lacking the consensus forecast by 3 cents. It had earlier pre-released in-line manufacturing outcomes.

Citing share worth appreciation after a soar of 43 per cent year-to-date, iA Capital Markets analyst George Topping moved his ranking to “purchase” from “sturdy purchase” whereas noting the improved sentiment towards gold.

“Wesdome might be a 200-270Koz producer at sub-US$1,000 per ounce AISC [all-in sustaining cost], probably inside two years or be a part of the Val-d’Or consolidation,” he stated.

Mr. Topping raised his goal to $20 from $16.50 on valuation a number of enlargement. The common on the Road is $15.05.

Elsewhere, Canaccord Genuity’s Michael Fairbairn lowered Wesdome to “maintain” from “purchase” with a $17 goal, up from $13.50.

“Since we resumed protection on January 31, 2022, WDO has considerably outperformed its friends, up 49 per cent vs. the junior peer common of 36 per cent,” stated Mr. Fairbairn. “Essentially we proceed to love Wesdome for its portfolio of high-quality property in low-risk jurisdictions, sturdy administration group, and anticipated near-term progress however flag WDO is now getting costly relative to friends and its historic buying and selling vary. Wesdome now trades on the prime of the junior group at 1.8-times NAV and 9.4-times EBITDA (junior friends at 0.9-times NAV and 6.9-times EBITDA) and its historic buying and selling vary of 5.4-13.4-times EBITDA and 0.68-1.24-times NAV.”

Echelon Companions’ Ryan Walker moved the inventory to “maintain” from “purchase” with a $13.50 goal.

“We anticipate WDO shares to proceed to commerce in tandem with gold (with potential additional upside related to gold worth spikes not mirrored in our PT given the excessive volatility owing to the battle in Ukraine,” stated Mr. Walker.

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Nationwide Financial institution Monetary analyst Cameron Doerksen sees “higher days forward” for Transat A.T. Inc. (TRZ-T), pointing to “optimistic” reserving traits whereas warning leverage “stays excessive.”

On Thursday, the airline reported first-quarter income of $202-million, under Mr. Doerksen’s $231-million estimate and the consensus forecast of $239-million. An adjusted EBITDA lack of $36-million was higher than anticipated (losses of $54-million and $40-million, respectively).

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“There are encouraging indicators that bookings for journey each for the rest of the winter and the summer time are strengthening,” stated Mr. Doerksen. “With the lifting of border restrictions in mid-February, Transat famous bookings soared to close 2019 ranges. Restoration has continued into March, and system-wide bookings have been at 87 per cent of 2019 ranges as of March tenth. Transat’s projected capability for Q2 is roughly 48 per cent of 2019 ranges and for summer time 2022 capability is deliberate to be at 91 per cent of 2019 ranges over its total community, though transatlantic might be barely slower to get well (78 per cent of 2019 capability for summer time).”

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The analyst additionally sees “much less urgency” on Transat’s stability sheet, noting: “Transat negotiated an extra $43 million with the federal authorities on its credit score facility for refunding passengers (at a charge of 1.22 per cent). Transat has additionally renegotiated some phrases of its authorities LEEFF unsecured credit score facility that sees the step-up in rate of interest (presently 5 per cent however stepping as much as 8 per cent) deferred to December 2023 versus April 2022 beforehand. These measures give Transat further respiratory room to seek out longer-term refinancing options. Nonetheless, the stability sheet stays considerably levered and the chance of shareholder dilution stays, in our view.”

Conserving an “underperform” ranking, Mr. Doerksen raised his goal for Transat shares to $4 from $3.50. The common is $3.65.

“As famous, there are encouraging indicators that bookings are strengthening, and we’re assured that Transat’s EBITDA and money circulate can inflect positively within the coming quarters. Nonetheless, leverage stays excessive, and we proceed to see a threat of future shareholder dilution,” he concluded.

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Predicting “important inflationary price stress (together with uncooked supplies, freight, and labour) might be a big headwind transferring ahead, RBC Dominion Securities analyst Paul Quinn downgraded KP Tissue Inc. (KPT-T) to “sector carry out” from “outperform” following in-line quarterly outcomes.

“Administration famous that inflationary pressures elevated through the second half of 2021, with related pressures anticipated to proceed into 2022,” he stated. “Vital This autumn price will increase year-over-year included the doubling of pure gasoline costs, 15-per-cent enhance in packaging prices, and quickly rising labour prices. Given these substantial will increase,the corporate launched lower-than-expectedQ1 EBITDA steerage and famous that they’re exploring further choices to stability their price profile with pricing and productiveness in 2022.”

“The corporate beforehand introduced worth enhance within the AFH phase efficient January 1, however the results of quickly growing inflationary stress on uncooked supplies and logistics price has required additional incremental worth will increase that are efficient in Q2 2022. The newest set of worth will increase are anticipated to step by step enhance profitability within the struggling phase. Regardless of worth will increase, the corporate famous that these mitigating actions may have a lagged impact in comparison with the affect of inflation. We word that the worth hikes could also be troublesome to realize given the NA tissue capability will increase in 2022.”

Additionally noting freight points “appear to be worsening,” Mr. Quinn lower his goal for KP Tissue shares by $1 to 11, under the $11.17 common on the Road.

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Following a “usually in line” fourth quarter of 2021, Canaccord Genuity analyst Aravinda Galappatthige expects the affect of provide chain disruptions to weigh on VerticalScope Holdings Inc. (FORA-T) by way of the primary half of 2022.

“As we had anticipated, administration feedback counsel ongoing headwinds resulting from world provide chain challenges, notably within the auto sector,” he stated. “Nonetheless, the current acquisitions are serving to decrease the automotive publicity of VerticalScope to sub 20 per cent. Importantly, whereas headwinds stay going into Q1, they don’t appear to be worsening, primarily based on the digital promoting numbers we noticed in This autumn. Actually, we estimate digital advert progress was close to double digits on an natural foundation.”

Mr. Galappathige anticipates the digital media firm will see natural progress from ecommerce returning within the second half of the 12 months following current a current slowdown, suggesting acquisitions may doubtlessly drive good points beginning within the second quarter.

“The aforementioned provide chain-related components and the excessive pandemic-led comp interval are the primary causes [of the declining growth rate],” he stated. “Nonetheless, we anticipate to return to sturdy progress by Q3. We anticipate VerticalScope to see tailwinds from a collection of initiatives which can be presently being rolled out that would come into full impact as we progress by way of the 12 months. This contains Sponsored Marketplaces which might additional drive eCommerce revenues and the seller self-serve (VSS) product. Second, we imagine there may be materials synergistic good points from the current acquisitions. Specifically with respect to Hometalk, we imagine there may be substantial upside by way of introducing eCommerce to the property, whereas The Streamable may see accelerated progress by way of elevated viewers routing as soon as built-in with VerticalScope’s 1,200+ properties.”

Although he decreased his income and earnings expectations to mirror “extra prolonged headwinds from provide chain/stock points, in addition to normal macro uncertainty,” Mr. Galappatthige added “We proceed to anticipate optimistic natural EBITDA progress in 2022, forward of a steeper acceleration in fiscal 2023. Moreover, as we play out the total 12 months, on a ‘no acquisition assumption’ our mannequin leads us to only 1.1 instances web debt/EBITDA by year-end, suggesting significant room for future acquisitions. Actually, if we work off year-end F2021 ranges, we estimate $75-$125-million in acquisition capability, assuming a 2.5-3-times leverage ratio limitation, with no new fairness issuances.”

Conserving a “purchase” ranking, he lower his goal for VerticalScope, which went public final June, to $28 from $32 with a view to “issue within the re-rating within the public markets over the previous three months, notably within the smaller cap and tech leaning sectors.” The common on the Road is $37.44.

“We nonetheless see FORA-TSX as a compelling choose in our sector within the present circumstances resulting from its well-rounded funding thesis that hits all the appropriate notes; from underlying natural progress alternatives, accretion from M&A, excessive margins, excessive FCF conversion to engaging valuations,” he stated. “Crucially, we additionally imagine that VerticalScope is much less inclined to privacy-related adjustments within the digital media ecosystem than lots of its friends.”

Elsewhere, RBC’s Drew McReynolds lower his goal to $32 from $35 with an “outperform” ranking, whereas TD Securities’ Vince Valentini decreased his goal to $31 from $40 with a “purchase” ranking.

“Given sturdy execution, a compelling enterprise mannequin and engaging outlook, we proceed to imagine the inventory is mispriced and we’d be consumers at present ranges. Factoring in a decrease terminal a number of in a better rate of interest surroundings, our worth goal decreases,” stated Mr. McReynolds.

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Seeing it “rising responsibly,” ATB Capital Markets analyst Martin Toner stays “assured” in Docebo Inc.’s (DCBO-T) potential to ship excessive charges of enlargement within the close to time period.

“Docebo’s progress algorithm stays sturdy, it’s including new, bigger prospects at a fast charge, and its progress with current prospects is enhancing,” he stated.

On Thursday, shares of Toronto-based on-line studying firm dropped 4.7 per cent after reporting its fourth-quarter 2021 monetary outcomes. Consolidated income grew 58.9 per cent year-over-year to $29.8-million, topping the Road’s forecast of $29.2-million, whereas annual recurring income jumped 59.1 per cent to a document $117.7-million, up $14.2-million from the third quarter. An adjusted earnings per share lack of 4 cents was smaller than anticipated by 3 cents.

“This autumn/21 outcomes have been very in line with the present narrative, fast, but capital environment friendly progress,” stated Mr. Toner.” Docebo continues to execute at a excessive degree, and is rising quickly relative to the broader SaaS universe. The largest change this quarter was establishing the expectation of reaching EBITDA and FCF optimistic exiting 2022, which is forward of our expectations. On condition that this announcement comes with no change to the expansion outlook, we view it as a optimistic, notably within the present surroundings. The ACV of latest prospects continues to return in nicely forward of the Firm common. ACV of latest prospects was near $60,000, about the identical as Q3/21, and roughly 45.0 per cent of latest prospects had over $100,000 in ACV. When enterprises are consolidating distributors, and require a powerful exterior use case providing, Docebo performs very nicely, and is experiencing sturdy win charges, nicely above common business common. We anticipate exterior use instances will proceed to turn into a extra essential studying precedence, and that this tailwind will enhance going ahead.”

The analyst increase his near-term EBITDA estimates to “mirror the accelerated path to optimistic free money circulate (FCF) and EBITDA,” whereas he lowered his income progress estimates to “incorporate a extra conservative outlook for 2023 (32.7-per-cent income progress from 2022 to 2023), which interprets right into a barely decrease 10-year income progress compounded annual progress charge (CAGR).”

Sustaining an “outperform” ranking, Mr. Toner raised his goal for Docebo shares to $115 from $110. The common is $101.76

“We imagine that Docebo’s low cost to the valuation of different fast-growing SaaS corporations implies even quicker deceleration for Docebo’s income, and that rising quicker, for longer, might be a catalyst for additional share worth appreciation,” he stated. “We imagine this miscategorization is pushed by the dearth of publicity the inventory has had throughout the SaaS universe given its dimension, liquidity, and geography, versus a detrimental view on any basic components.”

Others making goal changes embrace:

* Canaccord Genuity’s Robert Younger to US$65 from US$80 with a “purchase” ranking.

“We imagine a powerful enterprise pipeline helps our view of 43-per-cent ARR progress in 2022, albeit decelerating with rising scale,” stated Mr. Younger. “Alternatively, scale and working leverage additionally help a 2022 exit with optimistic EBITDA and FCF, which is a optimistic message out there’s present mind set. Administration did reiterate its concentrate on accountable progress. Regardless of the current tech sell-off, we stay optimistic on Docebo shares given a strong progress profile, sturdy gross sales effectivity metrics, quickly rising enterprise cohort and a strong stability sheet.”

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* Scotia’s Paul Steep to US$54 from US$79 with a “sector carry out” ranking.

“Our thesis on DCBO stays that the long-term alternative relies upon largely on the corporate’s potential to maintain or speed up natural progress, because it continues to spend money on rising its gross sales sources to drive progress in North America and Europe over the medium time period,” he stated. “We proceed to see M&A as having potential to drive worth in addition to administration’s potential to take care of the agency as a ‘Rule of 40′ SaaS firm.”

* Stifel’s Suthan Sukumar to US$85 from US$100 with a “purchase” ranking.

“DCBO delivered a strong set of outcomes for FQ4, with document web new ARR contribution from document buyer wins underscoring power and sturdiness of the corporate’s pipeline as the corporate continues to execute nicely towards an increasing market alternative,” he stated. “In our view, this units the stage for a powerful progress outlook mixed with stronger working leverage forward. Now we have up to date our estimates to mirror modestly larger progress and margin assumptions. Early days traction within the companion channel, world enlargement, and land

and broaden exercise hold us bullish on potential for additional progress upside.”

* CIBC’s Stephanie Worth to $70.50 from $102 with an “outperformer” ranking

* TD Securities’ Daniel Chan to $90 from $130 with a “purchase” ranking.

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In different analyst actions:

* TD Securities analyst Sam Damiani raised Granite Actual Property Funding Belief (GRT.UN-T) to “motion checklist purchase” from “purchase” with a $115 goal, whereas CIBC’s Sumayya Syed elevated her goal to $110 from $109 with an “outperformer” ranking. The common is $109.82.

* TD’s Craig Hutchison lower First Majestic Silver Corp. (FR-T) to “maintain” from “purchase” with a $19 goal, up from $18 and above the $18.80 common.

* TD’s Aaron MacNeil downgraded Shawcor Ltd. (SCL-T) to “maintain” from “purchase” with a $6 goal, down from $8.50, whereas RBC’s Keith Mackey lowered his goal to $8 from $9, above the $7.46 common, with an “outperform” ranking.

* Stifel analyst Robert Fitzmartyn downgraded Journey Power Inc. (JOY-T) to “maintain” from “purchase” with a $5.75 goal, rising from $2.75 and above the $4.17 common.

“Journey reported fourth quarter outcomes in step with our expectations,” he stated. “It’s lifting 2022 capital funding by $6-million to $42-million, including 3x wells to its drilling slate. We refine our forecast with AFFO technology muted by the incorporation of upper royalty burden forward. Inventory worth efficiency within the final 12 months has been superlative providing the very best return in our Canadian E&P protection suite. Sustaining our prior valuation we reluctantly discover ourselves lowering our ranking to HOLD on a considerably larger 12-month goal worth, although a return to drilling wells (bear in mind Journey didn’t drill any wells in 2020 or 2021) may derive quite a few operational catalysts forward.”

* Canaccord Genuity’s Aravinda Galappatthige decreased his goal for shares of AcuityAds Holdings Inc. (AT-T) to $7 from $13, protecting a “purchase” ranking, whereas Desjardins Securities’ Kevin Krishnaratne lower his goal by $1 to $6 with a “maintain” ranking and TD Securities’ Vince Valentini lowered his goal to $6 from $8 with a “purchase” ranking. The common is $8.07.

“Whereas 4Q income was in line, the near-term outlook requires continued headwinds resulting from provide chain disruptions and lower-than-normal journey advert spend,” stated Mr. Krishnaratne. “Whereas illumin has been forward of expectations, rather more significant traction with Enterprise purchasers just isn’t more likely to materialize till 2H. Within the meantime, AT is ramping up gross sales efforts, inflicting margins to compress. We preserve our Maintain ranking as we await proof of higher traits and income beats earlier than getting extra constructive on the identify.”

* Nationwide Financial institution Monetary’s Michael Robertson raised his Ag Progress Worldwide Inc. (AFN-T) goal to $49 from $46, protecting an “outperform” ranking. The common is $50.67.

“We just like the quarter and related outlook, reinforcing our optimistic stance,” he stated. “The buildout of AGI’s world platform has confirmed useful in limiting the affect of extreme climate or geopolitical turmoil in a particular geographic area, and with margins reaching inflection factors in progress markets, AGI continues to focus on a 100-200 bps in EBITDA margins relative to current ranges over the medium time period. With our forecasts nudged larger, we enhance our goal.”

* Desjardins Securities’ Gary Ho raised his Alaris Fairness Companions Revenue Belief (AD.UN-T) goal by $1 to $24 with a “purchase” ranking.

“Alaris reported a strong quarter which confirmed the early success of its pivot to frequent fairness investments (10 per cent of whole portfolio), demonstrated by sturdy FV good points. Two near-term catalysts for AD — Kimco redemption/crystallizing of unpaid distributions and the following deployment right into a follow-on funding. AD pref collars additionally provide charge reset advantages in an elevated inflationary surroundings. We upped our forecasts and bumped our goal worth,” stated Mr. Ho.

* Scotia’s Orest Wowkodaw raised his Altius Minerals Corp. (ALS-T) goal to $25, above the $23.86 common, from $19 “to mirror commodity costs which can be monitoring nicely above our present forecast, notably for potash.” He stored a “sector carry out” ranking.

* Canaccord Genuity’s Matthew Lee lower his Bragg Gaming Group Inc. (BRAG-T) goal to $19 from $21, exceeding the $17.40 common, with a “speculative purchase” ranking.

“2021 was an eventful 12 months for BRAG, with a number of important achievements considerably dampened by challenges in Germany and the resignation of its CEO,” stated Mr. Lee. “Whereas some uncertainties stay, we anticipate that an action-packed F21 has set the desk for the corporate to benefit from ample business tailwinds and drive excessive double-digit progress over the close to to medium time period. Whereas This autumn monetary outcomes have been largely in step with these pre-announced in its buying and selling replace, our key takeaway was the color BRAG supplied on steerage. On the decision, administration highlighted that the Ontario market was a negligible contributor to their forecasts, implying {that a} foray into the province (which opens April 4th) would solely be upside to their present 17-per-cent income progress trajectory. BRAG’s steerage, in tandem with its This autumn efficiency, improves our confidence in income visibility and, in consequence, drives a rise in our forecasts.”

* Wells Fargo’s Roger Learn raised his targets for Canadian Pure Assets Ltd. (CNQ-T, “equal weight”) to $79 from $61 and Suncor Power Inc. (SU-T, “obese”) to $51 from $42. The averages are $77.50 and $45.09, respectively.

“Now we have considerably raised our crude oil worth deck for 2022,” stated Mr. Learn. “Thus, our EPS and CFFO forecasts are nicely above consensus. It’s our view that near-term consensus estimates mirror a worth deck under the strip. Due to this fact, even when the present strip is a greater indication of precise costs, then consensus expectations would rise whereas ours would decline in 2022. Our 2024 worth deck is roughly $5/bbl under the strip. This helps our view of a costlier incremental barrel sooner or later and underpins our valuation outlook as cheap relative to the commodity.”

* BMO’s Peter Sklar lower his Canadian Tire Corp. Ltd. (CTC.A-T) goal to $187 from $206 with a “market carry out” ranking. The common is $232.80.

“Whereas we imagine Canadian Tire demonstrated that it is without doubt one of the most progressive Canadian retailers by way of adopting digital/omnichannel methods, the inventory was down $1 on the day,” he stated. “We imagine this was due to some components, together with the upper degree of capex spend out to 2025, the indication that earnings progress might be back-end loaded by way of the aspiration interval, and an anticipated 8.3-per-cent EPS CAGR by way of 2025, which, whereas is a wholesome progress charge, doesn’t seem like ample to deliver incremental traders into the inventory.”

* Nationwide Financial institution’s Zachary Evershed lowered his goal for Dexterra Group Inc. (DXT-T) to $13 from $14.50 with an “outperform” ranking. The common is $11.57.

* Calling its third-quarter outcomes a “satisfying meal,” RBC’s Irene Nattel elevated her Empire Firm Ltd. (EMP.A-T) to $48 from $46 with a “sector carry out” ranking. Others making adjustments embrace: BMO’s Peter Sklar to $46 from $41 with a “market carry out” ranking, CIBC’s Mark Petrie to $50 from $49 with an “outperformer” ranking and TD Securities’ Michael Aelst to $50 from $44 with a “purchase” ranking. The common is $46.89.

“FQ3 strong with meals retailing EBITDA as forecast, EPS $0.77 (RBC CM $0.71, consensus $0.66) benefited from larger contribution from Investments & Different Operations. EMP on monitor to understand the 15-per-cent three-year EPS CAGR goal of Challenge Horizon however slower progress in F22,” he stated. “The important thing caveat, in our view, is the depth and period of inflation — not simply in meals however throughout the board — that would deepen client commerce down, speed up the shift to low cost the place EMP below indexes, and enhance aggressive depth at a time of heightened investments for the corporate.”

* CIBC’s Cosmos Chiu bumped up his goal for Endeavour Silver Corp. (EDR-T) to $9 from $8 with a “impartial” ranking. The common is $7.21.

* CIBC’s Anita Soni elevated her Equinox Gold Corp. (EQX-T) goal to $10.75 from $10, protecting a “impartial” ranking. The common is $12.59.

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* Canaccord Genuity’s Yuri Lynk lower his Greenlane Renewables Inc. (GRN-T) goal to $2.25 from $3 with a “purchase” ranking, whereas TD’s Aaron MacNeil decreased his goal to $2 from $2.25 with a “speculative purchase” advice. The common is $2.68.

“Greenlane reported one other document income quarter and its fifth consecutive optimistic adjusted EBITDA quarter,” he stated. “Income elevated 146 per cent in 2021 whereas EBITDA turned optimistic. A document backlog of $50 million anticipated to be delivered over the subsequent 9-18 months displays growing demand for Greenlane’s biogas upgrading methods and factors towards progress persevering with in 2022. Nonetheless, we trim our goal worth on a extra conservative valuation a number of to mirror sector-wide a number of compression.”

* Scotia Capital’s Phil Hardie lowered his goal for Lifeworks Inc. (LWRK-T) to $28 from $32 with a “sector outperform” ranking. Different adjustments embrace: BMO’s Étienne Ricard to $29 from $34 with an “outperform” ranking, Nationwide Financial institution’s Jaeme Gloynto $28 from $32 with a “sector carry out” ranking, TD’s Graham Ryding to $27 from $36 with a “purchase” ranking and CIBC’s Stephanie Worth decreased her goal to $24 from $36.50 with an “outperformer” ranking. The common is $31.50.

“Within the near-term, LWRK has and can expertise margin stress as surging demand for psychological well being help drives elevated utilization of the corporate’s costlier third-party community,” stated Mr. Gloyn. “To offset this development, we anticipate LWRK to rent extra in-house counselors and renegotiate larger charges on buyer contract renewals. However this course of takes time and certain received’t resolve within the near-term. Furthermore, natural progress stays under the mid-single digit steerage, suggesting that LWRK might not seize as a lot income upside on the surging demand as we beforehand anticipated (not less than within the near-term).”

* CIBC’s Stephanie Worth raised her Magnet Forensics Inc. (MAGT-T) by $1 to $34, under the $43.90, common with an “outperformer” ranking, whereas RBC’s Paul Treiber lower his goal to $42 from $48 with an “outperform” advice and BMO’s Thanos Moschopoulos moved his goal to $38 from $45 with an “outperform” ranking.

“Whereas Magnet’s shares, together with high-growth software program friends, have been unstable of late, the corporate’s momentum has exceeded expectations. Wanting ahead, we see continued greater than 30-per-cent progress, as a result of excessive precedence being positioned on digital investigations within the public sector and rising adoption inside personal enterprises. Magnet is presently buying and selling at 8 instances FTM EV/S [forward 12-month enterprise value to sales], under cybersecurity friends at 11 instances, regardless of larger estimated FTM income progress (32 per cent vs. 23 per cent),” stated Mr. Treiber.

* Nationwide Financial institution’s Endri Leno raised his Medical Services Corp. (DR-T) to $12.75 from $11.50 with an “outperform” ranking. Others making adjustments embrace: RBC’s Douglas Miehm to $12 from $10 with a “sector carry out” ranking; iA Capital Markets’ Chelsea Stellick to $12 from $11.75 with a “purchase” ranking and Leede Jones Gable’s Douglas Loe to $13 from $10.50 with a “purchase” ranking . The common is $11.81.

“This autumn is a seasonally sturdy quarter for MFC and This autumn/21 outcomes handily beat Road estimates for each income and EBITDA leading to an upward rerating of the inventory [Friday] morning,” stated Ms. Stellick. “Given $61-million money readily available, MFC has expanded its NCIB to repurchase as much as 10 per cent of its excellent frequent shares till November thirtieth and having lately accomplished the enlargement at ASH we anticipate capital deployment in 2022 for growth of latest services or acquisitions. Regardless of Omicron sweeping by way of the nation in This autumn there was continued enchancment in surgical case volumes and we preserve our outlook for more and more normalized surgical case volumes and phasing out of stimulus.”

* Scotia’s Mark Neville lowered his Neo Efficiency Supplies Inc. (NEO-T) goal to $27, above the $26.69 common, from $29 with a “sector outperform” ranking, whereas Stifel’s Ian Gillies lower his goal to $21 from $26 with a “purchase” ranking.

“Given the magnitude of the rise in uncommon earth costs, now we have elevated our 2022/2023 estimates by 5 per cent/13 per cent,” Mr. Neville stated. “Importantly, the corporate additionally indicated its facility in Estonia has been unaffected (to this point) by the Russia/Ukraine battle – i.e., the corporate continues to be capable of supply materials (for uncommon earth separation) from Russia (70 per cent of the feedstock), whereas working to speed up shipments from Power Fuels (UUUU-US; not coated) and exploring alternatives with different suppliers. Whereas onerous to handicap the percentages of a disruption to the Russian feedstock, it doesn’t sound just like the affect could be overly punitive because the uncommon metals enterprise could be unaffected (50 per cent of the capability), the corporate has a number of months (i.e., extra tha n 3 months) of stock readily available, and Magnequench may supply magnetic supplies from different suppliers (relatively than from Estonia).”

* JP Morgan analyst Tien-Tsin Huang initiated protection of Nuvei Corp. (NVEI-Q, NVEI-T) with an “obese” ranking and US$65 goal. The common is US$104.75.

* With Thursday’s launch of weaker-than-anticipated quarterly outcomes, Canaccord Genuity’s Robert Younger lower his Pollard Banknote Ltd. (PBL-T) goal to $30 from $48 with a “maintain” ranking, whereas Acumen Capital’s Jim Byrne decreased his goal to $42 from $58 with a “purchase” ranking and Raymond James’ Stephen Boland lowered his goal to $47 from $51.50 with an “outperform” ranking. The common is $39.63.

“This autumn outcomes fell quick our expectations primarily resulting from inflationary pressures on the corporate’s inputs,” stated Mr. Byrne. “The corporate continues to be seeing very sturdy demand for its immediate ticket merchandise and charitable gaming operations within the first few months of 2022. Sadly, lots of the pressures from This autumn will affect Q1/22. The corporate has quite a few methods in place to assist mitigate the impacts as they enter the 12 months.”

“We imagine the underlying fundamentals for PBL stay very sturdy, and the corporate is poised to ship sturdy progress and important free money within the coming years.”

* Although he stated its quarterly outcomes impressed, Stifel analyst Martin Landry lowered his goal for Premium Manufacturers Holdings Corp. (PBH-T) to $140 from $150 with a “purchase” ranking primarily based on inflation considerations. Others making adjustments embrace: BMO’s Stephen MacLeod to $142 from $156 with an “outperform” ranking; Scotia’s George Doumet to $145 from $150 with a “sector outperform” ranking; CIBC’s John Zamparo to $120 from $135 with a “impartial” ranking and Desjardins Securities’ David Newman to $160 from $157 with a “purchase” ranking.. The common is $145.30.

“Premium Manufacturers continues to see sturdy momentum throughout its companies with demand outpacing capability in lots of segments,” stated Mr. Landry. “This dynamic might assist the corporate climate inflation dangers and will easy the potential of demand destruction. Administration charted a path to $600 million in EBITDA by 2023 which appears achievable given the CAPEX enlargement plans and up to date acquisitions. The corporate is predicted to introduce a brand new 5-year plan later this 12 months which could possibly be a near-term catalyst, offering traders with long-term visibility.”

“In our view, client sentiment as shifted considerably within the final month, resulting from rising inflation, rising rates of interest, rising gasoline costs, the inventory market correction and the Russian/Ukraine battle. We’re involved that decreased client confidence might make it troublesome to go on worth will increase with out an affect on demand. There are psychological threshold ranges comparable to ($9.99 or $19.99) the place previous these worth factors, demand destruction may happen, in our view. Therefore, we imagine that there’s a threat that demand could also be extra elastic than in earlier recession given the “excellent storm” nature of the macro-economic headwinds.”

* Nationwide Financial institution’s Shane Nagle raised his goal for Sherritt Worldwide Corp. (S-T) to $1 from 65 cents with a “sector carry out” ranking. The common is 83 cents.

“We’re using a revised goal a number of ascribing some worth to near-term money circulate as shares are anticipated to profit from elevated nickel, cobalt and fertilizer pricing,” stated Mr. Nagle. “Our Sector Carry out ranking accounts for Sherritt’s focused publicity to Nickel and Cobalt enhancing the outlook for distributions within the close to time period offset by the necessity to service debt commitments below our Base Case commodity worth assumptions.”

* CIBC’s Hamir Patel lower his Stella-Jones Inc. (SJ-T) goal to $50 from $51 with an “outperformer” ranking. The common is $52.31.

* Canaccord Genuity’s Yuri Lynk raised his goal for WSP International Inc. (WSP-T) to $200 from $190 with a “purchase” ranking. Others making adjustments embrace: Stifel’s Ian Gillies to $190 from $200 with a “purchase” ranking; Desjardins Securities’ Benoit Poirier to $192 from $185 with a “purchase” ranking. and RBC’s Sabahat Khan to $201 from $197 with an “outperform” ranking. The common is $196.64.

“Whereas we had excessive expectations for the upcoming strategic plan, administration outpaced our expectations with spectacular margin targets and inspiring feedback with respect to M&A … Contemplating WSP’s success with its two earlier strategic plans, we’re fairly assured in administration’s potential to satisfy, and doubtlessly exceed, sure targets by 2024. WSP is our most well-liked E&C identify,” stated Mr. Poirier.