Sunday , January 17 2021

Wednesday's analysts are upgrading and lowering

In the market of some of the circle of some key operations of the day

LOLOLAMON Athletics LTD (LULU-Q) is "the brand is still on the rise," according to Paul Leigh, who raised his rating to his inventory to "buy" from "hold" to believe it has been unfairly punished by St Street in recent weeks.

"LULU has introduced the power of its brand with high teens and comps several quarters in a row," he said. "But it was not about a particular product that pushed these results, setting them up for tough comparisons."

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"LULU continues to publish powerful compartments in highly developed categories, develops loyalty to men, and has the approval of men and women to expand into new categories. They have made the right investments in recent years to introduce them and continue to make the right investments to produce impressive sales / sales results Future ".

Mr. Lejuez said it was a "tough" earnings season for retailers with investors punishing many companies for lack of flow through the "decent" sale results. He believes that the retailer of athletic apparel based in Vancouver, was unfairly included in this group.

"In the past few months fears of a macro slowdown have taken the winning brands down with the rest of the group, seemingly drawing all with the same brush," he said. "LULU has been a victim, but it is a story of improving fundamentals and standing-down 28 percent from 9/28 ), We accept the macro concerns (and we have significant concerns about many stocks in our group if the consumer slows down), but we think it is a time-owned brand uncertain – one with the strongest brand positioning, comp momentum, international prospects, [return on invested capital] In our coverage. "

Mr. Lejuez maintained a target price of $ 152 for Lululemon shares. The average street target is currently $ 161.77, according to Bloomberg data.

"This is not a macro call, but we should note that LULU does not see anything in its consumer that even hinted at a slowdown," he said. "But given the uncertainties in the global environment, this is something that we at least consider as we weight loss risk."

"This does not mean that a significant decline in consumers will not have a negative impact on the results, but we believe that the LULU is in a better position to manage this period than ever before in the history of the company," he said.


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Clinical performance of Neovasc Inc.(NVCN-T) sinus coronary artery stenosis adds "optimism" to the company's overall cardiovascular system, said Echelon Wealth Partners analyst Douglas Loe.

Despite the "ongoing" financial risk facing Richmond, BC, Mr. Luo raised his rating to "speculative buying" from "holding" following the publication of 12-year follow-up data on reduction in patients with severe angina pectoris, citing Recently stock price compression.

"Reducer continues to exhibit a uniform positive effect on reducing angina refractory symptoms, and clinically significant time frame: To achieve ongoing pain relief in angina, it is almost certain that transplanted stent reducer was stably deployed into the coronary sinus over any study – but, it was approved With CT Angiography anyway, "Mr. Loo said. The authors note that no reduction in drugs or migration or stent-related blood clotting has been observed, encouraging secondary features of the positive effect of the reducer on chronic angina symptoms, as demonstrated not only in this long-term study, but in almost all previously published clinical trials of angina The new clinical trial of NewSec, COSIRA, was published in the New York Journal of Medicine in Q115.

Mr. Lou told Radosar's profile in medical literature "While always strong, took a quantum leap forward this year with multiple trials and criticism articles hitting the press in 2018."

He kept a target of $ 3 a share. The average is now $ 6.11.

"It is undeniable that with $ 14.5 million in cash and $ 28.5 million in convertible debt in the balance sheet, and with an operating loss of $ 5.9 million from FQ318 suggesting that the Tiara / Reduced clinical activity is funded only for FQ219, the financial risk is clearly high and increasing without infusion New capital from partners or capital markets in the near term, "he said. "The TIARA-II trial of 115 patients is expected to require $ 15 million in R & D capital to complete, even before considering the funds required for a downstream castle test or for Reducer-I / COSIRA-II."

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Cargojet Ltd (CJT-T) stands for "a unique Canadian game on the theme of an increased share of the retail wallet being driven on the line," according to Canagord Genuity analyst Doug Taylor.

In a research note released Wednesday, he initiated a coverage of the Matisoga-based airline with a "buy" rating.

"The forces driving retail sales through online channels and the demands of companies to offer shorter delivery times to keep up with Amazon, etc., are producing strong growth in the air cargo market tonight," Mr. Taylor said. "We see Cargojet as one of the few ways to effectively play this theme in Canada. We are an all-organic top-line growth model of 7-8 percent in 2019 and 2020."

"Cargojet, Canada's largest cargo provider, is expected to benefit from the global increase in e-commerce spending. Worldwide shipping preferences continue to move from brick and mortar retail sales to customers, and customer expectations for time orders are compressed. , Including Canada Post, Purolator, UPS, DHL and Amazon which delivered the overnight deliveries to Cargjet's local night network, we expect that the company will continue to experience steady as Canada plays catch with more developed e-commerce investments.

Have grown at a CAGR 11 per cent [compound annual growth rate] Since 2011 and 22 per cent per annum. "

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Mr. Taylor sees a "very broad" competitive excavation for the company, noting that it has developed a "market" market share in the Canadian cargo market (almost 90%). He feels some factors are working to protect the dominance, including "foreign ownership regulations, high capital cost, long-term customer contracts and strong reputation / performance history."

The analyst set a target of $ 90 per share, sitting below a consensus of $ 94.57.

"We believe that the company's prospects and growth profile should preserve its premium valuation," he said.

"The company has seen its valuation expand in recent years, which we believe reflects a growing appreciation of growth in business growth and competitive positioning, and prospects for better FCF conversion in the coming years after several years of reinvestment. By combining growth and deleveraging.90 our target price is based on 12 – 13x

EV / EBITDA applies to our forward estimates, one year out. We believe that the company's current dividend yield of 1.1% is comfortably covered by a coordinated FCF [free cash flow] And we expect consistent dividend growth in the coming years as the company's FCF profile continues to improve. "


Along with the adjustments to their commodity price assumptions, Raymond James analysts have made several changes in their rankings for Canadian energy companies.

The company lowered their crude oil prices in line with the move in forward prices, reducing WTI's forecasts for 2019 to $ 53.88 a barrel from $ 71.50, and an estimate of $ 54.20. Their long-term assumption rose to $ 75 a barrel from $ 70.

For mixed sweet mix, their assumption of 2019 dropped to $ 54.44 (Canadian) from $ 79.48 with a 2020 discount of $ 57.14. Their long-term discount dropped to $ 78.82 from $ 80.50.

"We have made a number of ratings changes along with updating our goods," analysts said Kurt Molnar, Jeremy Mac. Rhea and Chris Cox. "The short- and long-term assumptions led to substantial declines in our forecasts for our producers under cover, and as a result, the economy of the half reduced the cycle well, together with the expected rate of capitalization."

With these changes, the following companies declined:

Team Energy Ltd. (CR-T) to a "overperforming" performance market with a target of $ 1.60, less than $ 3. The average is $ 2.54.

Delhi Energy Corp. (DEE-T) to "beat" from "strong buy" with a target of $ 1, down from $ 1.50. Average: $ 1.10.

Granite Oil Corp. (GXO-T) to the "performance market" from its "performance" with a target of $ 1.50, down from $ 3. Average: $ 1.62.

NOVISTA ENERGY LTD (NVA-T) to "beat" from "strong buy" with a target of $ 6, falling from $ 12. Average: $ 9.36.

Seven Generations Energy Ltd. (VII-T) to its "performance" from "strong buy" with a target of $ 18.50, compared to $ 27.50. Average: $ 19.63.

However, analysts raised their ratings to three companies, citing a potential reversal in the context of their long-term commodity talks, noting: "Although the price of the Gaza Strip remains volatile, many valuations of stock prices still reflect the price of a band two weeks ago Lower than the current price). "

The following companies were raised to "Strong Buy" from "outperform" ratings:

Bonterra Energy Corp. (BNE-T) with a target of $ 14, from $ 22. Average: $ 12.45.

TORC OIL & GAS LTD (TOG-T) with a target of $ 7.50, lower than $ 10. Average: $ 9.21.

Emek Tamark Valley (TVE-T) with a target of $ 5, down from $ 6. Average: $ 5.53.


With his forecast for 2019 regarding investments in the US and hotels in the US, analyst Michael Billerman lowered the US equity quartet, citing "a more cautious view of Lina, mainly due to improved macroeconomic concerns, lukewarm expectations and a challenging environment for margin Operational.

Mr. Billeerman lowered his rating to "neutral" from "Buy" to these four shares:

MARITI INTERNATIONAL LTD (MAR-Q) with a target of $ 177, down from $ 144. The average street target is $ 135.95.

"Despite significant performance of the year so far, we believe that significant proliferation will be achieved in light of the growth of macroeconomic growth trends, the uncertainty surrounding recent data breaches, and continuing concerns about the integration of reward schemes," he said.

Hotels in Hyatt (H-N) with a target of $ 77, less than $ 95 and an average of $ 81.32.

"Our upgrade is based on a substantial completion of the asset sale program, integration risks for the acquisition of Two Roads and a reduction in the valuation gap between H and MAR & HLT," he said.

Host Hotels & Resorts Inc. (HST-N) with a target of $ 19.50, falling from $ 24. The average is $ 21.70.

"We believe that the significant expansion in valuation multipliers from current levels is unpredictable considering ongoing portfolio disruptions, the more difficult profit margins than 2018 (17 basis points) tax reductions and the challenging environment of RevPAR," he said.

Federal Real Estate Investing Trust (FRT-N) with a target of $ 146 (unchanged). The average is $ 139.64.

"We are improving our absolute ranking in FRT to be neutralized by better performance this year and premium value compared to peers," he said.

In contrast, Mr. Belerman upgraded Realty Income Corp. (O-N) to "neutral" from "sell" with a target of $ 67, rising from $ 56. The average is $ 10.

"The valuation remains rich on an absolute basis, but in the current environment (which remains positive for scattered investment), we see the premium valuation as the cost of a capital advantage to generate future cash flow growth," the analyst said.

At the same time, Mr. Billerman added Order Houses Ltd. (INVH-N) to "List of Best Ideas of City", replacing his choice 2018 Precision Realty Corp (DRE).

"INVH is well placed to drive cash flow through internal and external growth, and we prefer the single rental industry as we see it as providing both protection and growth," says Mr Billerman, who has a buy rating and $ 26 per share $ 25.37).


Analyst Yuri Link, Canadecord NV, lowered its target price for shares FINING INTERNATIONAL LTD (FTT-T) in response to the $ 260 million purchase of 4Refuel, despite seeing "compelling aspects of its business."

On Tuesday, Fining-based Vancouver announced the deal of 4Refuel, based on Toronto, which is the leading navigation company in Canada. "

"Finning paid ~ $ 260 million or 7.8 times 2018 estimated EBITDA, pre-synergies, for the business," said Mr. Link. "We put the EBIT number paid 11.3 times. These multiples are slightly higher than the cases in which Finani is currently traded but is justified, in our opinion, on the basis of the company's recurring revenues, as well as the synergy potential of revenues.

"We assume that the acquisition closes at the end of January and therefore includes only two months in the first quarter of 2019. As such, our EBITDA estimates rose to $ 804 million in 2019 and $ 868 million in 2020, from $ 773 million and $ 831 million Respectively. We calculate the acquisition to be 4-per-accertive to EPS in 2019, bringing our estimate to $ 2.30.In the meantime, our EPS estimate of 2020 is rising 6 percent to $ 2.50. Recall next year, Finning should benefit from rolling Of significant ERP implementation costs in South America, action of the right size in Argentina, commencement of construction activity in LNG Canada, and growth in product support. "

He maintained a "buy" rating for Fenning, and Mr. Link dropped his target to $ 33 from $ 38, which is below the consensus of $ 35.25.

"Over the past year or so, the doubles of future heavy equipment companies have dropped from 20.0 times in the case of Caterpillar, Cometsu and Turomon, 11.7 times," he said. "The previous target of 16.5 times for Fenning's earnings multiplier looks richer, and we are taking this opportunity to reduce it to 13.5 times, and we continue to apply to the Q4 earnings estimate for the fourth quarter of 2019 to the third quarter of 2020. Our new goal implies A return of 36 percent, including a dividend yield of 3.2 percent. "


In other analyst actions:

Analyst Mac Carey, Mike Rizanovic, was released Bank of Montreal (BMO-T, BMO-N) to "neutral" from "outperform" with a target of $ 101, falling from $ 111. The average street target is $ 108.54.

Mr. Rizvanovic upgraded Royal Bank of Canada (RY-T, RY-N) to "beat" from "neutral" with a target of $ 104, which falls to the consensus of $ 110.14.

Barclays analyst James Duran has been upgraded North West Co., Ltd (NWC-T) to "overweight" from "equal weight" and bumped its target to $ 34 from $ 31. The average is $ 33.20.

RBC Dominion securities downgraded ONLY ENERGY GROUP LTD (JE-T) to "sector performance" from "outperform" with a target of $ 5.50, compared to $ 5 but below the consensus of $ 5.78.

More to come

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