With a third straight quarter of strong results and a solid balance sheet, Alamos Gold Inc. “remains a preferred gold producer within our coverage universe,” said RBC Dominion Securities analyst Dan Rollins.
Alamos produced a record-breaking 53,000 ounces of gold in the second quarter of 2013 and ended the quarter with $466–million in cash and no debt.
“Although the company’s share price has significantly outperformed its peers over the last month, we continue to believe an outperform rating is warranted, given Alamos’ investment qualities relative to its peers,” said Mr. Rollins.
Target: Mr. Rollins raised his price target to $18 from $16 while maintaining an “outperform” rating.
With no sign of a contract with China, weakening demand from India and increased competition from rivals in Latin America, CIBC analyst Jacob Bout sees tough times ahead for Potash Corp.
“Globally, potash markets are softer in the last month, with prices declining across all markets,” said Mr Bout. “[We] do not expect potash prices to reach $400 per metric ton until 2020.”
Target: Mr. Bout lowered his price forecast to $38 from $40.
A significant rebound in the price of turkey and pork is likely to bolster margins of Hormel Foods Corp., says Credit Suisse analyst Rob Moskow.
“For investors with a 12-month horizon, positive reversals in commodity markets tend to present opportune entry points for Hormel stock,” said Mr. Moskow.
He also thinks that the recent acquisition of the Skippy peanut butter brand has been underestimated.
“It also provides Hormel with significantly more scale in international markets, which are becoming more important to Hormel’s growth algorithm,” he said.
Target: Mr. Moskow raised his price target to $46 (U.S.) from $39.
While Arctic Cat Inc. has impressed the Street with its earnings growth, despite soft demand for outdoor recreation vehicles, Bank Of Montreal analyst Gerrick Johnson remains “somewhat skeptical” about the company’s long-term prospects.
“Our rating remains market perform though, as we worry that deficiencies in distribution, product quality, and marketing present risk to the company’s ability to achieve current expectations for long-term growth,” said Mr. Johnson.
Target: Mr. Johnson raised his price target to $48 from $44.
Bank of Montreal analyst Joel Tiss forecast a jump in the share price of WABCO Holdings Inc. after the commercial vehicle supplier reported better-than-expected second-quarter earnings.
Although European truck sales have been lagging for the last five years, Mr. Tiss noted that tighter emissions standards, which come into force next year, are likely to bolster prices and should help balance out production declines in China and Brazil.
“[We] remain confident future earnings could be spring loaded,” said Mr. Tiss.
Target: Mr. Tiss raised his price target to $89 from $83 while upgrading his rating to “outperform” from “market perform.”
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