September 26, 2022
Contained in the Market’s roundup of a few of right this moment’s key analyst actions

Contained in the Market’s roundup of a few of right this moment’s key analyst actions

Nationwide Financial institution Monetary analyst Zachary Evershed sees Boyd Group Companies Inc. (BYD-T) approaching an “inflection level” as “the business regularly recovers and value will increase speed up.”

Accordingly, following Wednesday’s launch of better-than-expected first-quarter outcomes that displayed accelerated same-store gross sales development, he raised his advice for the Winnipeg-based firm’s shares to “outperform” from “sector carry out” beforehand.

“Administration signifies that to date in Q2, SSSG is on observe to exceed Q1′s 14.7 per cent (13.1 per cent on a per-day foundation), which might put Boyd above pre-pandemic ranges on a same-store foundation,” stated Mr. Evershed. “We imagine that is pushed primarily by pricing, as we estimate Boyd secured 6.4 per cent in hikes as on the This autumn name, bringing charges as much as par with inflation seen to Q3/21, and administration commentary signifies that pricing will increase since then are bigger in magnitude. This means to us that labour reimbursement charges are catching as much as wage strain, as hourly wages elevated 2.3 per cent in March 2022 vs. September 2021.”

The analyst thinks Boyd is more likely to push its aggressive M&A method to a “assist function” within the medium time period, specializing in same-store development and bettering pricing. He’s lowered his new areas acquired forecast to 40 in 2022 and 80 in 2023, down from 100 and 125 beforehand.

“We stay assured in Boyd’s potential to satisfy its 2025 development aim as we suspect the corporate can compensate for M&A later,” he stated. “As seven of the highest eight gamers within the business are PE-backed, rising rates of interest are more likely to hit competitor shopping for energy extra immediately. Thus, Boyd can afford to be affected person on the acquisition entrance, probably buying extra retailers at extra engaging multiples additional down the road, and focus efforts on core challenges within the instant time period.”

Citing compression in each peer multiples and the broader market, Mr. Evershed lowered his goal for Boyd shares to $170 from $200. The typical on the Avenue is $190.15, in response to Refinitiv information.

“Although value hikes are following a transferring goal and provide chain points persist, we improve to Outperform as we imagine we’re closing in on the margin restoration inflection level,” he stated. “Visibility on value hikes stays restricted within the close to time period, however we imagine they’re inevitable in the long run given provider incentive alignment, and Boyd is proving itself able to navigating detours with the potential to return out stronger on the M&A entrance.”

Different analysts making goal changes embody:

* Desjardins Securities’ Gary Ho to $205 from $225 with a “purchase” ranking.

“BYD reported a 1Q beat, pushed by sustained momentum in SSSG and success with value enhance negotiations with insurers,” he stated. “Nevertheless, extra is required to restore margins over the close to to medium time period. Therefore, margin strain will possible persist. Whereas M&A might take a again seat as administration focuses on fixing near-term points impacting margins, it stays dedicated to doubling the enterprise by 2025.”

* Scotia’s Michael Doumet to $220 from $240 with a “sector outperform” ranking.

“Since labour inflation/constraints and provide chain challenges emerged within the 2H21, we (and traders) have been attempting to evaluate when the various transferring components, together with increased labour charges from insurers, increased technician capability, and components provide chain enhancements can be ample to maneuver margins within the optimistic course,” he stated. “Based mostly on what we heard on the decision (and the CPI information), we imagine margins have now bottomed. For 2Q, we expect margins shall be flattish (possible up) as fee will increase from insurers outpace labour inflation and as opex leverage improves with increased throughput. Whereas the cadence of the margin enchancment continues to be “anyone’s guess”, the truth that demand far outstrips provide, to us, means that insurers will proceed to lift costs to draw extra restore capability and cut back lead occasions. Additional, and perhaps most significantly, we imagine slowing financial development and decelerating inflation performs play into BYD’s favor. We predict BYD exiting this era of depressed margins and accelerating its M&A in 2023 (PE-owned operators that carry extra leverage are dealing with increased curiosity prices) will set off a number of enlargement. We’d be shopping for on weak spot.”

* BMO’s Jonathan Lamers to $165 from $188 with a “market carry out” ranking.

* Stifel’s Maggie MacDougall to $150 from $185 with a “maintain” ranking.

* Jefferies’ Bret Jordan to $180 from $225 with a “purchase” ranking.

* TD Securities’ Daryl Younger to $200 from $220 with a “purchase” ranking.

* CIBC’s Krista Friesen to $168 from $175 with a “impartial” ranking.


Following “weaker” first-quarter outcomes and a “disappointing” disclosure of the anticipated transition to IFRS17, BMO Nesbitt Burns analyst Tom MacKinnon downgraded Manulife Monetary Corp. (MFC-T) to “market carry out” from “outperform.”

“Our downgrade displays two objects (1) Whereas MFC factors to maybe a bigger than anticipated 20-per-cent decline in BVPS/10-per-cent decline in core EPS upon transition to IFRS17 in 2023, its disclosure offered little element to evaluate MFC’s development/earnings profile below IFRS17, significantly with respect to the all-important CSM [contractual service margin] (2) Q1/22 missed/low high quality/with estimates revised 6 per cent downwards,” he stated.

“Given this, and the truth that MFC has outperformed friends by 10 per cent plus year-to-date, we imagine it’s finest to pause after which reassess how MFC’s KPI’s [key performance indicators], together with the CSM, really unfold in 2023 below IFRS17.”

Mr. MacKinnon reduce his goal for Manulife shares to $27 from $37. The typical is $29.82.

Elsewhere, others making modifications embody:

* TD Securities’ Mario Mendonca to $34 from $37 with an “motion checklist purchase” ranking.

* Nationwide Financial institution Monetary’s Gabriel Dechaine to $26 from $28 with a “sector carry out” ranking.

Mr. Dechaine additionally lowered his Solar Life Monetary Inc. (SLF-T, “sector carry out”) to $72 from $76, under the $74.54 common, whereas Mr. Mendonca additionally reduce his goal to $72 from $76 with a “maintain” advice.


Following “respectable” first-quarter outcomes, RBC Dominion Securities analyst Greg Pardy maintained his “bullish stance” on Imperial Oil Ltd. (IMO-T), citing its “succesful management crew, favorable long-term working outlook, robust stability sheet and dedication to shareholder returns.”

Exiting the quarter, Mr. Pardy emphasised the Calgary-based firm now possesses “ample” free money movement, projecting $8.5-billion in 2022 (earlier than dividends of $868-million) primarily based on US$100 per barrel WTI and “anchored” by a $1.4-billion capital program.

“Factored into our outlook is a $2.1 billion (pre-tax) downstream money movement contribution and money taxes of $210 million over the last three quarters of 2022,” he stated. “We perceive that Imperial’s present taxes had been restricted to about $200 million within the first quarter (a $692 million revenue assertion line merchandise was partially off-set in working capital changes). In complete, the corporate expects to pay about $400-million of taxes ’out-the-door’ in 2022, that are anticipated to extend steeply in 2023. Imperial possesses a powerful stability sheet, which ought to transfer right into a internet money place through the second half of 2022.”

With the outcomes and announcement of its substantial issuer bid to buy as much as $2.5-billion of its widespread shares, Mr. Pardy raised his goal for Imperial Oil shares by $1 to $66, reiterating an “outperform” ranking. The typical is $66.42.

“Imperial is buying and selling at a debt-adjusted money movement a number of of three.8 occasions (according to our world built-in peer group avg.) in 2022 and a free money movement yield of 20 per cent (according to our peer group avg.) below our base outlook,” he stated. “In our opinion, Imperial ought to command an above common a number of given its low-decline long-life upstream portfolio, spectacular operational efficiency, robust stability sheet and rising shareholder returns profile.”


Canaccord Genuity analyst Mark Rothschild expects Summit Industrial Earnings REIT (SMU.UN-T) to proceed benefitting from rising rental charges for industrial area in its core markets.

Now seeing an “engaging” entry level following in-line first-quarter outcomes, he raised his advice to “purchase” from “maintain.”

“Industrial fundamentals stay exceptionally sturdy in Summit Industrial Earnings REIT’s (Summit) core markets of the GTA (50 per cent of gross leasable space) and Montreal (22 per cent of GLA), and there was extra upward strain on rental charges” he stated. “Within the quarter, the REIT achieved leasing spreads of, on common, 51.5 per cent and, with quarterly outcomes, introduced a 3-per-cent enhance within the month-to-month distribution.”

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“Yr-to-date, Summit’s models have returned unfavorable 17.6 per cent, and the implied cap fee has risen 50 bps from 3.6 per cent firstly of the 12 months to 4.1 per cent at present. Industrial fundamentals stay extraordinarily robust in Canada at simply 1.6-per-cent availability, in comparison with 4.9 per cent within the U.S., in response to CBRE, and given the excessive demand and low provide of commercial area, the hole between in-place and market lease throughout Summit’s portfolio is exceptionally excessive and leasing spreads are extensive. Due to this fact, we imagine the REIT is nicely positioned for robust FFO and NAV development for a number of years.”

Reiterating his bullish view, Mr. Rothschild maintained a $22 goal for Summit Industrial models. The typical is $24.50.

Others making goal modifications embody:

* CIBC’s Sumayya Syed’s to $22.50 from $24 with a “impartial” ranking.

* Desjardins Securities’ Michael Markidis to $24 from $25 with a “purchase” ranking.


Pan American Silver Corp.’s (PAAS-Q, PAAS-T) weaker-than-expected first-quarter is more likely to be its “low level” in 2022, stated Canaccord Genuity analyst Dalton Baretto.

“PAAS’s monetary outcomes had been largely according to our estimates, however under consensus,” he stated. “Administration flagged the identical elements which have impacted basically each mining firm in Q1 – the OMICRON variant, inflation pressures on gasoline and consumables, and provide chain disruptions. Silver gross sales and prices had been really higher than we had forecasted, however monetary outcomes had been impacted by increased prices within the gold section. Full-year steering was maintained, with administration acknowledging that the 12 months shall be H2-weighted given the challenges in Q1.”

Regardless of deeming its outcomes “principally unfavorable,” he upgraded its shares to “purchase” from “maintain” with an unchanged US$30 goal. The typical is US$32.16.

“We like PAAS for its scale, leverage to each Au and Ag, robust stability sheet, and natural development optionality, and we imagine the latest pullback within the share value has introduced a gorgeous entry alternative for the inventory,” he stated. “As well as, we see optimistic potential catalysts on the horizon within the type of ongoing progress updates on the worldclass La Colorada Skarn and Escobal tasks.”

Elsewhere, BMO’s Ryan Thompson trimmed his goal to US$28 from US$30 with an “outperform” ranking.


Following the discharge of “robust” first-quarter outcomes and better-than-expected full-year steering, RBC Dominion Securities analyst Paul Treiber emphasised Sierra Wi-fi Inc.’s (SWIR-Q, SW-T) “newfound potential to satisfy robust demand for IoT [Internet of Things] modules by way of stable provide chain and manufacturing execution.”

After the bell on Wednesday, the Vancouver-based agency reported income of US$173-million, up 60 per cent year-over-year and nicely above the Avenue’s forecast of US$142-million and its steering of US$135-150-million. Adjusted earnings per share of 23 US cents additionally beat the consensus estimate (2 US cents) as its IoT Options section greater than doubled its anticipated development.

Concurrently, the corporate introduced second-quarter income steering of US$160-175-million, topping the consensus estimate of US$145-million.

“The mid-point of income steering implies 26-per-cent year-over-year development, down from 60 per cent Q1, which displays a extra regular year-over-year comparable,” stated Mr. Treiber. “Above historic year-over-year development (6-per-cent common over 10 years) displays Sierra’s robust backlog, together with its potential to safe part provide and manufacture with out disruptions.”

“Q1 execution is an early validator of Sierra’s re-prioritization of {hardware}. Q1 is the second consecutive quarter with precise quarterly income and steering for subsequent quarter’s income materially above consensus expectations. The development displays stable manufacturing and provide chain execution, as the corporate is benefitting from its newly diversified manufacturing footprint and proactive part stock construct forward of anticipated demand. Whereas IoT modules might stay a low gross margin enterprise, administration believes it could possibly proceed to execute and generate improved free money movement.”

After elevating his full-year income and earnings, Mr. Treiber elevated his goal for Sierra Wi-fi shares to US$22 from US$20. The typical is US$22.28.

Nevertheless, he saved a “sector carry out” advice, warning: “Close to-term visibility is excessive, however concern of the cycle might restrain Sierra’s a number of.”

“Demand is robust and backlog is larger than Sierra’s capability for the time being,” he added. “Lead occasions are the longest within the firm’s historical past, extending out to 2023 with non-cancellation phrases in some circumstances. Nevertheless, with macroeconomic considerations weighing on the broader inventory market, traders might concern a possible normalization in demand in some unspecified time in the future sooner or later, which can constrain Sierra’s valuation a number of. Sierra is now buying and selling at 0.8 occasions FTM EV/S [forward 12-month enterprise value-to-sales], which is according to the mid-point of its 10-year historical past (avg. 0.8 occasions EV/S, vary 0.2-2.1 occasions) and under friends at 1.4 occasions.”

Different analysts making modifications embody:

* Raymond James’ Steven Li to US$20 from US$18 with a “market carry out” ranking.

“Efficiently navigated provide chain constraints and pandemic affect to ship a powerful 1Q beat after a difficult 2021. Provide chain stays a headwind (count on until F2023) however SWIR is now in a a lot improved place to mitigate the continuing affect of the pandemic after including new manufacturing websites (Mexico) giving the corporate manufacturing flexibility with multi-factory manufacturing,” stated Mr. Li.

* Canaccord Genuity’s T. Michael Walkley to US$27 from US$24 with a “purchase” ranking

* TD’s Daniel Chan to US$22 from US$19 with a “maintain” ranking.

* CIBC’s Todd Coupland to US$15 from US$14 with an “underperformer” ranking.

* BMO’s Thanos Moschopoulos to US$20 from US$18 with a “market carry out” ranking.


Calling it “too cheap to disregard,” BMO Nesbitt Burns analyst John Gibson raised Complete Vitality Companies Inc. (TOT-T) to “outperform” from “market carry out” following its quarterly earnings launch.

“The corporate’s cheap valuation (lower than 3 occasions 2023 EV/EBITDA) screens nicely relative to our protection group,” he stated. “Mix this with our extraordinarily robust outlook for oilfield service exercise ranges and pricing into 2023, we now fee TOT shares as Outperform.”

Mr. Gibson raised his goal by $1 to $11, which is 44 cents lower than the typical.


Citing “turbulence” at its development stage Magino undertaking in northern Ontario, Canaccord Genuity analyst Michael Fairbairn lowered his advice for Argonaut Gold Inc. (AR-T) to “promote” from “maintain.”

“Total, Argonaut had a powerful operational quarter, with manufacturing, gross sales, and prices all popping out forward of our forecasts. This was overshadowed, in our view, by additional challenges at Magino, the place the corporate flagged the potential for added price overruns and a potential labour motion, whereas noting its pending financing hole might trigger disruptions as early as this 12 months,” he stated. “Because the weak spot within the bond market continues we don’t imagine there are quite a lot of good choices to plug the stability sheet gap.”

Mr. Fairbain estimates Argonaut will face a $225-million funding hole to finish Magino, which may come as early because the third quarter of the present fiscal 12 months.

“Administration is at present assessing monetary and strategic options, together with the potential sale of shares, growing debt leverage, or the sale of mineral properties (which we imagine might embody a strategic sale of the corporate),” he stated. “Whereas administration stays cautiously optimistic that it’ll discover a answer by the tip of Q2/22, the corporate additionally flags that ought to it’s unable to shut the hole promptly and upon acceptable phrases, AR might have to regulate its development plans for the Magino undertaking. This may considerably affect the undertaking schedule and enhance anticipated capital.”

The analyst trimmed his goal for Argonaut shares to $1.50 from $2.75. The typical is $3.36.


Following lower-than-expected first-quarter outcomes, Raymond James analyst Frederic Bastien downgraded Dexterra Group Inc. (DXT-T) to “outperform” from “robust purchase.”

“Dexterra’s ambitions to construct an infrastructure assist companies champion are regularly coming into focus,” he stated. “The corporate is profiting from a powerful commodity value atmosphere for its WAFES section to scale its Services Administration (FM) enterprise and speed up its transition to a diversified and asset-light enterprise mannequin. We approve of the latest acquisitions of Dana and Tricom, particularly, since they increase DXT’s place in verticals that can revenue disproportionately from reopening economies (together with transit, schooling, hospitality, and leisure). Sadly, Modular Options (MS) has dissatisfied for just a few quarters, a pattern unlikely to reverse quickly with inflationary price pressures now hitting the section. Two out of three ain’t dangerous, however it not helps a Sturdy Purchase ranking on the inventory.”

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His goal declined to $10 from $12. The typical is $11.09.

Elsewhere, Scotia Capital’s Michael Doumet lowered his goal to $10 from $11 with a “sector outperform” ranking.

“Just like lots of quarters in 2021, DXT reported stable outcomes, with one or two segments offsetting short-term weak spot in a single or two of the opposite segments. In 1Q22, it was the better-than-expected EBITDA in WAFES and IFM that offset the weak spot in MS,” stated Mr. Doumet.


In different analyst actions:

* CIBC World Markets analyst Robert Catellier upgraded TC Vitality Corp. (TRP-T) to “outperformer” from “impartial” and raised his goal to $77 from $73, exceeding the $72.13 common on the Avenue.

* Remaining bullish after a “modest” first-quarter beat, Desjardins Securities’ Gary Ho lowered his Ag Progress Worldwide Inc. (AFN-T) goal to $51 from $53 with a “purchase” ranking. The typical is $51.20.

“Our optimistic funding thesis relies on: (1) AGI’s technique locations it on the centre of the worldwide meals infrastructure buildout; (2) publicity to the agriculture supercycle, with robust momentum in lots of markets; (3) market share positive aspects within the quickly rising but underpenetrated Brazilian market; and (4) dissipating overhang from the bin incident,” stated Mr. Ho.

* Scotia Capital’s Mario Saric reduce his American Lodge Earnings Properties REIT (HOT.U-T) goal to $4.75 from $5 with a “sector carry out” ranking. The typical is $4.07.

* CIBC’s Anita Soni lowered her Barrick Gold Corp. (GOLD-N, ABX-T) goal to US$29 from US$30, remaining above the US$28.71 common, with an “outperformer” ranking.

* Ms. Soni additionally lowered his Kinross Gold Corp. (KGC-N, Okay-T) goal to US$6 from US$7.25 with a “impartial” ranking. The typical is US$7.83.

* CIBC’s Jacob Bout lowered his goal for Chicken Development Inc. (BDT-T) goal to $12 from $13, sustaining an “outperformer” ranking. The typical is $12.58.

* Nationwide Financial institution Monetary’s Rupert Merer trimmed his Boralex Inc. (BLX-T) goal by $1 to $47 with an “outperform” ranking. The typical is $46.73.

“We up to date our mannequin to account for Q1 outcomes and better energy costs in France. With rising bond yields, we elevated our low cost fee to six per cent (was 5.5 per cent), leading to a slight drop in our goal,” stated Mr. Merer.

* Mr. Merer additionally lowered his Northland Energy Inc. (NPI-T) goal to $44 from $45, under the $46.56 common, with an “outperform” ranking.

* Canaccord Genuity’s Matthew Lee lowered his goal for Bragg Gaming Group Inc. (BRAG-T) to $15 from $19 with a “speculative purchase” ranking, whereas Haywood Securities’ Neal Gilmer reduce his goal to $17 from $22 with a “purchase” ranking. The typical is $15.60.

“Regardless of German headwinds and minimal contribution from North America, Bragg nonetheless managed to considerably outperform our forecast in Q1. The corporate delivered 36-per-cent income development (29-per-cent natural), largely reflecting power from the Dutch market, which continues to be a key development driver. We see extra optimistic catalysts within the close to to medium time period because it grows its buyer base within the US and Ontario, the place Bragg is already seeing robust demand for its gaming content material. Now we have elevated our forecasts post-Q1 to mirror gross sales power with our estimates notably above F22 steering,” stated Mr. Lee.

* Mr. Lee raised his Trade Earnings Corp. (EIF-T) goal to $58 from $52 with a “purchase” ranking. The typical is $54.55, whereas TD’s Tim James hiked his goal to $59 from $49 with a “purchase” ranking.

* Canaccord Genuity’s Robert Younger reduce his Converge Expertise Options Corp. (CTS-T) goal to $12 from $14.50, reiterating a “purchase” ranking. The typical is $13.42.

“Converge reported a powerful Q1 prime line, though EBITDA was under Avenue expectations given product combine skewed towards decrease margin {hardware} gross sales,” stated Mr. Younger. “The demand backdrop stays sturdy and is underscored by $575-million in product bookings in Q1, with North America and Europe each contributing. Heading into Q1, there was possible some fear across the affect of provide chain and endpoint machine shortages, which appears to abating as Converge acknowledged $250-million of its $350-million backlog in Q1. Whereas we imagine the next $472-million backlog is more likely to obscure an in any other case double-digit natural development profile, we count on M&A is a near-term tailwind as Converge sees extra alternative within the Companies area given its sturdy stability sheet and lowered M&A contest. Administration additionally reiterated its goal of exiting 2022 with $200-million in managed companies ARR, which can possible lean extra on M&A than anticipated. In our view, the sell-off at these ranges seems overdone contemplating the macro tailwind and near-term M&A along with Converge’s robust FCF era.”

* Mr. Younger additionally lowered his Copperleaf Applied sciences Inc. (CPLF-T) goal to $13 from $20 with a “purchase” ranking, whereas CIBC’s Todd Coupland reduce his goal to $11, under the $15.33 common, from $18 with a “impartial” ranking.

“Copperleaf continues so as to add to its bench power to capitalize on the robust demand and sturdy pipeline with a give attention to S&M operate and associate channel improvement,” stated Mr. Younger. “We imagine Copperleaf’s lumpy perpetual section will proceed to be a wild card versus our forecast going forward whereas we additionally stay cautious on potential promoting from the lockup expiry. That stated, we’re inspired by the robust pipeline and total macro dynamic together with ESG and vitality transition supporting Copperleaf’s development going ahead.”

* Mr. Coupland sliced his E Automotive Inc. (EINC-T) goal to $17 from $27, under the $19.48 common, with an “outperformer” ranking.

* Jefferies’ Owen Bennett raised his Cronos Group Inc. (CRON-T) goal to $4.30 from $3.70 with a “maintain” ranking. The typical is $5.76.

* CIBC’s Cosmos Chiu reduce his Endeavour Silver Corp. (EDR-T) goal to $8 from $9 with a “impartial” ranking, whereas BMO’s Ryan Thompson lowered his goal to $5.25 from $6 with a “market carry out” ranking and TD’s Craig Hutchison trimmed his goal to $5.50 from $7 with a “maintain” ranking. The typical is $7.33.

* RBC’s Geoffrey Kwan reduce his Equitable Group Inc. (EQB-T) goal to $80 from $85, preserving an “outperform” ranking. Different modifications embody: BMO’s Étienne Ricard to $91 from $97 with an “outperform” ranking, Scotia’s Meny Grauman to $80 from $79 with a “sector outperform” ranking and Raymond James’ Stephen Boland to $86.50 from $85 with an “outperform” ranking. The typical is $84.43.

“Q1/22 EPS was higher than our forecast and consensus. EQB continues to ship robust monetary outcomes. Nevertheless, with the housing and mortgage market slowing, within the quick time period, we expect sector valuations might be pushed by sentiment, not fundamentals. We predict EQB has an excellent observe file of development and profitability and given our view that mortgage mortgage development will sluggish however a housing downturn with extreme mortgage losses is unlikely, we view the shares as engaging,” stated Mr. Kwan.

* Mr. Chiu additionally lowered his Fortuna Silver Mines Inc. (FVI-T) goal to $5.50 from $6 with a “impartial” ranking. The typical is $5.94.

* CIBC’s John Zamparo reduce his GDI Built-in Facility Companies Inc. (GDI-T) goal to $61 from $65, preserving an “outperformer” ranking. Different modifications embody: Scotia’s Michael Doumet to $50 from $59 with a “sector carry out” ranking, Desjardins Securities’s Frederic Tremblay to $63.50 from $67 with a “purchase” ranking and Stifel’s Maggie MacDougall to $60 from $70 with a “purchase” ranking. The typical is $64.50.

“Janitorial companies’ robust natural development, better-than-expected contribution from the IH acquisition and wholesome margins fuelled GDI’s stable 1Q outcomes,” stated Mr. Tremblay. “Whereas provide chain bottlenecks are quickly slowing backlog conversion in Technical Companies, we proceed to view the lately established U.S. platform as a significant potential development driver. An NCIB opens the door to opportunistic share repurchases with out stopping GDI from self-funding its development initiatives. We’re reiterating our Purchase advice.”

* Scotia’s Patricia Baker raised her George Weston Ltd. (WN-T) goal to $177, above the $174.86 common, from $174 with a “sector outperform” ranking.

* CIBC’s Nik Priebe lowered his Goeasy Ltd. (GSY-T) goal to $180 from $200, under the $205.56 common, with an “outperformer” ranking. Different modifications embody: Raymond James’ Stephen Boland to $213 from $207 with a “robust purchase” ranking and Nationwide Financial institution’ Jaeme Gloyn to $155 from $220 with an “outperform” ranking.

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“Total, a stable quarter with outcomes comparatively according to our estimates and consensus although mortgage development was increased than anticipated,” stated Mr. Boland. “We notice that the year-over-year comparability is considerably tough given the acquisition of Lendcare in 2Q21. Gross Loans grew 6 per cent within the quarter (7 per cent final quarter), and are actually $2.15 billion. We’re inspired by the rising diversification of mortgage merchandise that even have a stronger credit score profile together with house fairness and auto loans. By means of a mixture of hedges, fastened time period loans and flooring agreements, increased rates of interest ought to have a minimal affect to financials. Administration offered robust 2Q22 steering so the excessive development pattern shall be maintained. For 2022, administration expects to attain the excessive finish of the mortgage guide steering.”

* RBC’s Sabahat Khan reduce his Excessive Liner Meals Inc. (HLF-T) goal to $13 from $15 with a “sector carry out” ranking. The typical is $16.25.

* CIBC’s Paul Holden raised his goal for Intact Monetary Corp. (IFC-T) to $225 from $210, preserving an “outperformer” ranking, whereas Desjardins Securities’ Doug Younger elevated his goal to $210 from $205 with a “purchase” ranking and Scotia’s Phil Hardie bumped his goal to $207 from $200 with a “sector outperform” ranking. The typical is $208.50.

“Intact delivered one other better-than-expected quarter that was characterised by robust outcomes throughout Canada and the U.S.,” stated Mr. Hardie. “What units Q1/22 other than latest quarters is that this was a comparatively broad-based beat that was pushed by better-than-expected underwriting profitability in addition to distribution revenue. The corporate is off to a stable begin in 2022, and we stay bullish on the outlook.

“Intact inventory has delivered important outperformance relative to the S&P/TSX Financials Index to this point in 2022 and, on an absolute degree, is up 8 per cent towards a backdrop of a broad market sell-off. Intact stays our “Go-To” Defensive High quality title, and we imagine it may be engaging for large-cap traders searching for a high-quality title to cut back portfolio beta that trades at an affordable valuation.”

* Canaccord Genuity’s Derek Dley lowered his Kits Eyecare Ltd. (KITS-T) goal to $7 from $8, above the $6 common, with a “purchase” ranking

“). Whereas there are not any good public comparable corporations to KITS, we imagine the broader eyewear retail peer set is an acceptable barometer, with the group buying and selling at a median of two.5 occasions 2022 gross sales. In our view, KITS ought to commerce at a premium to those friends, given its earlier stage within the development cycle, increased anticipated income development, wholesome stability sheet, and robust administration crew,” he stated.

* CIBC’s Krista Friesen reduce her Linamar Corp. (LNR-T) goal to $73 from $85 with an “outperformer” ranking, whereas TD’s Brian Morrison trimmed his goal to $80 from $83 with a “purchase” ranking. The typical is $76.60.

* Canaccord Genuity’s Doug Taylor reduce his MDA Ltd. (MDA-T) goal to $15 from $20, remaining above the $13.50 common, with a “purchase” ranking, whereas BMO’s Thanos Moschopoulos lowered his goal to $11 from $13 with a “market carry out” ranking.

“MDA posted a better-than-expected Q1 and saved its steering for the 12 months unchanged on the again of a number of substantial bookings which are anticipated to drive an uptick in development in H2/22. The corporate stated it expects to finalize contracting for Telesat’s Lightspeed program by the tip of June, establishing a key catalyst that ought to give extra confidence on this 12 months’s execution towards that steering and cement the expansion profile into 2023. That is more likely to make the present valuation, at 8 occasions EBITDA utilizing the 2022 steering midpoint, look too low cost vs. historic norms and comps,” stated Mr. Taylor.

* CIBC’s Nik Priebe reduce his Energy Company of Canada (POW-T) goal to $40 from $44 with a “impartial” ranking, whereas BMO’s Tom MacKinnon lowered his goal to $39 from $40 with a “market carry out” ranking. The typical is $43.94.

* Nationwide Financial institution Monetary’s Tal Woolley trimmed his RioCan Actual Property Funding Belief (REI.UN-T) goal to $27 from $27.50 with an “outperform” ranking, whereas RBC’s Pammi Bir reduce his goal to $26 from $27 with an “outperform” ranking. The typical is $26.36.

“Our constructive view on REI is undamaged,” stated Mr. Bir. “Whereas the Might 10 th value motion on the models appeared incongruent with a superb set of outcomes, the sector is combating a harder tape amid rising bond yields. That stated, we imagine REI is in stable kind, supported by fundamentals that proceed to realize traction, a big pipeline of improvement completions lined up, and levers to assist discount in leverage. Backside line, at a 6.1-per-cent implied cap fee, we see a superb margin of security.”

* After a “softer” begin to 2022, Nationwide Financial institution Monetary’s Zachary Evershed trimmed his Savaria Corp. (SIS-T) goal by $1 to $22 with an “outperform” ranking. The typical is $24.06.

“We reiterate our Outperform ranking as we stay assured in SIS’s potential to speed up out of the pandemic whereas defending margins by way of price pass-throughs, complemented by strategic strikes akin to the brand new Mexican manufacturing facility and vertical integration with the Ultron tuck-in,” he stated.

* RBC’s Walter Spracklin reduce his goal for shares of Stella-Jones Inc. (SJ-T) to $40 from $43, sustaining a “sector carry out” ranking, whereas TD’s Michael Tupholme reduce his goal to $50 from $56 with an “motion checklist purchase” ranking. The typical is $51.50.

“SJ began the 12 months robust, with Q1 outcomes forward of expectations and higher than anticipated prime line throughout all segments,” stated Mr. Spracklin. “Whereas the corporate didn’t enhance its 2022 or 3-year targets(each being set solely final quarter); the early developments counsel bias to the upside. Whereas we’re taking our estimates increased to mirror the early pattern; the general market uncertainty has created the next total fairness threat premium; and we’re moderating our goal a number of accordingly. Whereas we preserve our SP ranking on relative returns; we flag SJ as a stable (less-cyclical) firm with engaging underlying developments.”

* RBC’s Brad Heffern lowered his Tricon Residential Inc. (TCN-N, TCN-T) goal to US$17 from US$18 with an “outperform” ranking, whereas Scotia’s Mario Saric reduce his goal to US$17.25 from US$17.50 with a “sector outperform” ranking. The typical is US$17.

“TCN’s 1Q22 outcomes had been in line, and the corporate was the one SFR title to lift steering,” stated Mr. Heffern. “Demand continues to be very sturdy, which is at odds with the latest decline within the share value, and administration famous that the big delta between TCN’s valuation and personal market valuations is “absurd”. We are likely to agree with that view. Our estimates and value goal are barely decrease on the next price of capital.”

* Scotia Capital’s Mark Neville reduce his WSP World Inc. (WSP-T) goal to $170 from $185, reaffirming a “sector carry out” ranking. The typical is 193.64.

“We proceed to view the Skilled Companies corporations (together with WSP) as being nicely insulated from present macro challenges: (i.) inflationary pressures are largely restricted to labour and are successfully passed-through, (ii.) provide chain points are minimal, and (iii.) public sector publicity is massive, with long-term spending commitments in place that ought to present top-line stability within the occasion of an financial slowdown,” he stated.

* RBC’s Drew McReynolds raised his Yellow Pages Ltd. (Y-T) goal by $1 to $15, matching the typical, with a “sector carry out” ranking.

“We imagine important progress on price administration and now full debt compensation have improved the risk-return profile of the inventory and offered a tail of declining however optimistic FCF that ought to maintain optimistic fairness worth,” stated Mr. McReynolds. “On condition that we now have seen only a few examples of profitable transformation tales throughout the Canadian media sector during the last 20 years, we imagine the corporate’s renewed FCF and de-levering focus over the previous 2-3 years was the prudent pivot to make. Actually, we imagine such a pivot is uncommon for publicly traded Canadian media corporations and we commend administration on execution. Whereas we proceed to wrestle with the corporate’s aggressive place and longer-term income development technique and due to this fact stay on the sidelines, we’re inspired by the notably improved income trajectory in 2022.”