Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

H&R REIT and a consortium led by KingSett Capital acquired Primaris Retail REIT, owner of such properties as Kelowna, B.C.’s Orchard Park Shopping Centre, the biggest M&A deal in Canada in 2013, as of May 1.
H&R REIT and a consortium led by KingSett Capital acquired Primaris Retail REIT, owner of such properties as Kelowna, B.C.’s Orchard Park Shopping Centre, the biggest M&A deal in Canada in 2013, as of May 1.

5 real estate names to buy as bond yields turn nasty for REITs Add to ...

"In our view, Surge has laid out a solid foundation for its dividend payout, with a reduced 25 per cent decline rate and a much stronger balance sheet following the asset acquisition, which was effectively financed with shares through the equity offering," commented Desjardins Securities analyst Tim Murray.

"Although market appetite for yield may have tempered slightly in recent weeks, with bond yields finally showing sparks of life, we believe Surge's transition into a dividend payer will be rewarded by investors as the company rapidly emerges into one of the premier small-cap dividend players in the sector."

Target: Mr. Murray maintained a "buy" rating but sliced his price target by $1 to $7.50. The average target is $6.45.

=====

A downturn in spot metallurgical coal prices has prompted Dundee Securities analyst Joseph Gallucci to downgrade Cardero Resource Corp. to "neutral" from "buy."

Dundee earlier this week cut its outlook on coal prices, citing recent signs of a slowdown in the Chinese economy.

Mr. Gallucci sees little upside right now in Cardero, a Vancouver-based mining company focused on the Carbon Creek metallurgical coal project in northeastern British Columbia, given that it has "very large financing needs in an extremely difficult environment."

But once it secures financing and resolves port issues, Mr. Gallucci believes the Carbon Creek asset will be a prime takeover target due to its location and production profile.

Target: Mr. Gallucci maintained a 70-cents-per-share price target. The average target is 85 cents.

=====

General Dynamics Corp. has the potential to raise both its dividend payout and share buybacks to match its peers, which would boost investor interest and earnings per share estimates, said RBC Dominion Securities analyst Robert Stallard.

With the stock trading at 11 times estimated 2014 earnings per share, he thinks the market is valuing it solely as a defence company, a sector facing big government spending cuts. But its aerospace division should contribute almost 50 per cent of its earnings before interest and taxes by 2015.

"On a sum of the parts basis, we think GD has the potential for a positive re-rating as the business jet outlook improves, and the company steps up the cash deployment," he said.

Target: Mr. Stallard raised his price target to $86 (U.S.) from $81 and reiterated an "outperform" rating. The average target is $79.08.

=====

For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @ eyeonequities

Single page

Follow on Twitter: @eyeonequities

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories