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Inside the Market's roundup of some of today's key analyst actions. This file will be updated often during the trading day so check back for new details.

Netflix Inc. has "achieved a level of sustainable scale, growth, and profitability that isn't currently reflected in its stock price," said RBC Dominion Securities analyst Mark Mahaney.

Mr. Mahaney raised his price target for the company to $700 (U.S.) from $600 while maintaining his "outperform" rating. The analyst consensus price target, according to Thomson Reuters, is $582.68.

He outlined four key rationales for the move:

1. RBC's 15 quarterly 1,000+ U.S. Internet User survey which found:

  • 50 per cent of respondents used Netflix, making it the most popular U.S. online video service
  • 72  per cent of subscribers were “extremely satisfied” or “very satisfied” by the product, both records and an increase of 58 per cent from two years ago
  • The impact from the $1 price increase was muted
  • A record-low churn rate

"Overall, we remain confident that our key survey findings support the conclusion that Netflix offers an increasingly attractive consumer value proposition in the U.S.," said Mr. Mahaney. "This conclusion has been relatively consistent over the last two years."

2. RBC's second survey in France and Germany of approximately 3,200 Internet users, which found: climbing usage despite strong competitors; high satisfaction but churn "still likely high"

3. Monitoring of user ratings shows the "materiality" of Netflix's original content is largely proven.

4. Potential long-term impact on earnings per share of a successful launch of the service in China

"Our long-term 120-million global Netflix subscriber number has generally assumed approximately 60-million U.S. subscribers and approximately 60-million international subscribers, assuming 20% penetration of the roughly 305-million broadband households in the top 20 non- China broadband markets, he said. ``However, if Netflix were able to succeed in the China market, there could be dramatic upside to our 120-million long-term Netflix subscriber goal, given that China's broadband household market is currently roughly equal in size to the top 6 non-U.S. broadband markets combined."

According to Mr. Mahaney, impediments to his price target include: losing market share to competitors; increasing cost of content acquisition; uncertain long-term profitability in international markets; challenges and changes to the DVD business and tiered broadband pricing.

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In the wake of securing a contract to supply and fabricate the steel structure for the new Champlain Bridge in Montreal, Raymond James analyst Frederic Bastien emphasized that Canam Group Inc. remains one of his "best money-making ideas."

Mr. Bastien estimated the project, which he calls a "big win" for the industry, will require a minimum of 50,000 tons of steel. Assuming a price per ton of $4500 to $6000, he said the contract's value could range from $225-million to $300-million.

"Just how significant is this? It could be the biggest job ever obtained by Canam and the largest bridge contract ever awarded in North America (the eastern span replacement of the San Francisco Bay Bridge was comparatively bigger in scope, at about 100,000 tons, but used fabricated steel from Korea)," he said.

Mr. Bastien added: "The best thing about this  contract from our perspective is that it is supply only. This means the firm can focus on what it does best – steel fabrication - and leave all installation risks with the contractors. To be clear the Canam of today is much better equipped to assume such risks than five years ago, when it lost its shirt on the BC Place Stadium contract, but we'll always prefer situations in which it can avoid them. So should investors."

While maintaining his "outperform" rating, the analyst raised his price target to $18 from $16 (Canadian). The analyst consensus is $16.20.

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CIBC World Markets analyst Dave Popowich upgraded Pacific Rubiales Energy Corp. to "sector performer" from "sector underperform."

Late Wednesday, Pacific Rubiales announced it has an agreement for the sale of the company, a cash offer at $6.50 per share, to a newly created entity led by Alfa Sab de CV (ALFAA-MX) and Harbour Energy Ltd., a private investment firm. The deal, which has been opposed by its largest shareholder, O'Hara Administration Co.,  is expected to close in the third quarter.

"We believe ALFA's offer represents fair value for Pacific's assets, and expect it to be met with widespread approval amongst the company's shareholder base," said Mr. Popowich. "That said, Pacific's largest shareholder has already expressed its opposition to a potential transaction. The O'Hara group's ultimate intentions remain unclear at this point, suggesting the stock is unlikely to price-in full value for the ALFA offer until the shareholder vote."

The analyst raised his price target from $2 to $6.50 (Canadian) to fall in line with the cash offer. The analyst consensus is $6.09.

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The $1.25-billion equity offering from First Quantum Minerals Ltd.  enhances the company's "industry-leading growth profile" and provides balance sheet protection against lower commodity prices, said Canaccord Genuity analyst Gary Lampard.

The company will sell 76.9 million shares priced at $16.25 each with proceeds aimed at growth, debt reduction and other corporate purposes.

Mr. Lampard added First Quantum to its "Focus List" - its top investing ideas. But he lowered his price target to $21 from $22 (Canadian). The analyst consensus is $16.38.

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Despite raising his earnings per share estimates for 2015 and 2016, Canaccord Genuity analyst Christian Buss said there are increasing signs that  Gap Inc. is "losing relevance with consumers."

Mr. Buss called the Gap " the big underperformer in the quarter" with total comparable same-store sales down 4 per cent. It's the fifth consecutive quarter of negative comps for the company. He called the gross margins "exceptionally weak" at 37.8 per cent, below the consensus forecast of 38.3 per cent.

"We are increasingly concerned that a stabilization point will prove challenging to find at the Gap brand, pressuring earnings for Gap Inc. over the near and long-term," he said.

Mr. Buss pointed out that, despite the "weak top-line results," the company maintained its full-year guidance, suggesting it is managing expenses well. He feels that points to a favourable focus on shareholder priorities and provided a rationale for raising his EPS forecasts.

The analyst updated his 2015 comparable same-store sales, revenue and EPS expectations to -1.6 per cent, $16.74-billion and $2.77 from 0.9 per cent, $16.657-billion and $2.70. For 2016, sales, revenue and EPS estimates went to 1.7 per cent, $17.219-billion, and $2.90 from 1.9 per cent, $17.551-billion and $2.88.

"In our view, the rise of low-cost 'deep value' retailers with efficient supply chains and subsequently lower markdown risk on core apparel product is eroding the value proposition of the concept," said Mr. Buss. "With Gap's supply chain still reliant on long lead-times and design teams isolated from production, we think focus on product alone will not fix the issue. As a result, we believe that comps and earnings power will remain under pressure."

Mr. Buss maintained his "underperform" rating and $34 (U.S.) price target. The consensus is $42.50.

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In other analyst actions:

RBC Dominion Securities raised its price target on Netflix (NFLX-Q) to $700 (U.S.) from $600 and maintained an "outperform" rating.

ATS Automation Tooling Systems Inc. (ATA-T) was raised to "buy" from "hold" at TD Securities and Paradigm Capital. TD's 12-month target price is $17.50 (Canadian) per share while Paradigm's target price is $19 (Canadian).

Computer Modelling Group Ltd. (CMG-T) was downgraded to "hold" from "buy" at TD Securities. The 12-month target price is $14.50 (Canadian) per share.

Allison Transmission Holdings Inc. (ALSN-N) was rated new "Buy" at Stifel. The 12-month target price is $37 (U.S.) per share.

Buckle Inc. (BKE-N) was raised to "Sector Weight" from "Underweight" at KeyBanc.

Blackstone Group LP (BX-N) was rated new "Positive" at Susquehanna. The 12-month target price is $53 (U.S.) per share.

Cypress Semiconductor Corp. (CY-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $23 (U.S.) per share.

Esperion Therapeutics Inc. (ESPR-Q) was rated new "Sell" at Chardan Capital Markets. The 12-month target price is $55 (U.S.) per share.

Horizon Pharma Plc (HZNP-Q) was rated new "Outperform" at Leerink Partners. The 12-month target price is $37 (U.S.) per share.

Ingersoll-Rand PLC (IR-N) was raised to "Buy" from "Hold" at Argus. The target price is $86 (U.S.) per share.

Micron Technology Inc. (MU-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $39 (U.S.) per share.

Monster Worldwide Inc. (MWW-N) was rated new "Neutral" at Piper Jaffray. The 12-month target price is $7 (U.S.) per share.

NXP Semiconductors NV (NXPI-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $140 (U.S.) per share.

ON Semiconductor Corp. (ON-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $16 (U.S.)per share.

Sharps Compliance Corp. (SMED-Q) was rated new "Buy" at Stifel. The 12-month target price is $8 (U.S.) per share.

SanDisk Corp. (SNDK-Q) was rated new "Neutral" at Mizuho Securities USA. The 12-month target price is $74 (U.S.) per share.

StemCells Inc. (STEM-Q) was rated new "Buy" at Cantor Fitzgerald. The 12-month target price is $2 (U.S.) per share.

Skyworks Solutions Inc. (SWKS-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $115 (U.S.) per share.

Synaptics Inc. (SYNA-Q) was rated new "Buy" at Mizuho Securities USA. The 12-month target price is $115 (U.S.) per share.

Texas Instruments Inc. (TXN-Q) was rated new "Neutral" at Mizuho Securities USA. The 12-month target price is $57 (U.S.) per share.

Capital One Financial Corp. (COF-N) was raised to "Buy" from "Hold" at Rafferty Capital Markets. The 12-month target price is $103 (U.S.) per share.

Jumei International Holding Ltd. (JMEI-N) was rated new "Buy" at TH Capital. The 12-month target price is $30 (U.S.) per share.

Lumber Liquidators Holdings Inc. (LL-N) was downgraded to "Market Perform" from "Outperform" at Raymond James.

With files from Bloomberg News

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