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A Royal Bank of Canada (RBC) logo is seen on Bay Street in the heart of the financial district in Toronto, January 22, 2015.MARK BLINCH/Reuters

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.

Citibank late Monday upgraded both Royal Bank of Canada and Toronto-Dominion Bank to "buy" from "neutral." Analyst Stefan Nedialkov also raised his price target on Royal Bank to $86 (Canadian) from $83, and on TD to $62 (Canadian) from $59.

He said Royal Bank is now Citibank's preferred name among the Big Five. Citibank also has a "buy" rating on CIBC, with "neutral" ratings on Bank of Montreal and Bank of Nova Scotia.

Mr. Nedialkov said the Canadian banks now screen well against both Australian and Nordic banks. "We expect the Canadians to power ahead in 2015-17," he said in a research note. "Canadian dividend yields (4.2 per cent to 4.6 per cent) are marginally below those in Australia (4.5-5.1 per cent) and below those in the Nordics (4.3-6.4 per cent) but higher buyback activity and organic capital generation should help the Canadians outperform."

He raised his sustainable return on equity assumption for Royal Bank to 18.5 per cent from 18.0 per cent. "Our more positive view is based on two factors: 1) RY has the most diversified business models among the Canadian banks which should help shield it from an oil/housing-related earnings slowdown; and 2) RY should deliver one of the best shareholder value growth rates in Canada, together with TD," he said.

He raised his return on equity projection for TD to 15.5 per cent from 15.0 per cent. "Our more positive view is based on two factors: 1) TD should deliver one of the best shareholder value growth rates in Canada, together with RY; and 2) TD has one of the highest exposures to the recovering U.S. economy as well as one of the highest sensitivities to interest rates, including U.S. rates," he said.

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RBC Dominion Securities Inc. analyst Ross MacMillan took three different approaches to analyzing Oracle Corp.'s cloud business that all pointed him to the same conclusion: "Underlying growth is accelerating which we think will become even more apparent in coming quarters." The analyst upgraded the stock to "outperform" from "sector perform."

With momentum building for Oracle's Human Capital Management applications and software bookings increasing, the analyst is optimistic about the company's cloud app growth potential. Mr. MacMillan is also confident about the outlook for Oracle's database business.

The analyst thinks the most significant current threat to Oracle is gross margin deflation as the company transitions from on-site services to cloud services.

Mr. MacMillan raised his target price to $50 from $48. Consensus is $46.28, according to Thomson Reuters.

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Kraft Foods Group Inc.'s deal with 3G Capital and Berkshire Hathaway Inc. is a "slam dunk for shareholders," Canaccord Genuity analyst Alicia Forry said. The analyst upgraded the stock to "buy" from "hold."

Ms. Forry sees the deal as a "welcome surprise" for shareholders that clarifies the strategic direction of the business and introduces revenue and cost synergies. The deal will also bring highly regarded management to the company.

With a strong track record of synergy savings, the analyst is confident in 3G's $1.5-billion (U.S.) cost-reduction target. Ms. Forry also said the deal will be 7 per cent accretive to base Kraft earnings in 2017.

The analyst noted that as Heinz transitions to the public sphere, the Kraft Heinz synergies will become public, something that could spur further consolidation in the industry.

Ms. Forry raised her target price to $96 (U.S.) from $70. Consensus is $81.54, according to Thomson Reuters.

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Legacy Oil + Gas Inc. is fundamentally undervalued at its current price, Desjardins Securities Inc. analyst Kristopher Zack said. Nevertheless, without a clear company transformation strategy to reposition itself within the new commodity price environment, the analyst is downgrading the stock to "hold" from "buy."

Becoming increasingly cautious on the stock amid weak oil prices, the analyst expects to see asset dispositions as the company moves to reduce its debt. Given the company's limited visibility on new strategies though, Mr. Zack has moved to the sidelines.

The analyst thinks Legacy's "significant land position" in southeast Saskatchewan is attractive and notes that as long as commodity prices do not dip lower, the company's debt covenants will not become an issue until late this year. He also noted his belief that a weak oil price environment will increasingly favour buyers over sellers.

Mr. Zack maintained his $2.75 price target. Consensus is $2.71, according to Thomson Reuters.

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Savanna Energy Services Corp. continues to cut costs, making the decision to eliminate its dividend late last week. RBC Dominion Securities Inc. analyst Dan MacDonald responded by cutting his target price while maintaining his "sector perform" rating.

"SVY's ongoing efforts to reduce cash outlay are prudent and highlight management's efforts to preserve liquidity in a challenged market. However, it also highlights the underlying concerns we share with investors surrounding its liquidity position and operational results in a challenging oilfield services environment."

The elimination of its quarterly dividend will save Savanna about $8.1-million in 2015.

One further concern the analyst noted is the company's rig reductions. While the analyst expected dramatic North American reductions, Mr. MacDonald said the non-renewal of one Australian rig contract concerns him as he expected "this segment to remain relatively more robust demand wise."

Mr. MacDonald cut his target price to $2.50 from $4. Consensus is $2.75, according to Thomson Reuters.

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Canfor Corp. has emerged as a stronger and more formidable competitor over the past decade, BMO Nesbitt Burns Inc. analyst Mark Wilde, said. The analyst initiated coverage on the stock with a "market perform" rating.

"Our current rating should not obscure the tremendous turnaround at Canfor over the past decade," Mr. Wilde said.

Canfor is currently the No. 2 producer of softwood lumber in North American with close to 8 per cent of the market. The analyst thinks the company is financially well-positioned to pursue acquisitions in the "highly fragmented southern U.S. lumber market."

While Mr. Wilde is optimistic about a recovering U.S. housing market, he thinks a stronger U.S. dollar will pressure lumber and pulp prices. The analyst also sees Canfor's valuation as "full," forcing him to the middle ground.

Mr. Wilde set his target price at $29. Consensus is $34.74, according to Thomson Reuters.

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BRP Inc.'s strong financial results in the fourth quarter of the 2015 fiscal year are a good start toward winning back investors, said BMO Nesbitt Burns analyst Gerrick Johnson.

However, Mr. Johnson thinks more consistent results are necessary before it regains full support.

The company reported a normalized earnings per share of 98 cents, beating consensus estimates by 20 cents. It also issued financial guidance for the fiscal year of 2016, looking for a 6-10-per-cent increase in normalized EBITDA. Due to an increased tax rate, EPS is forecast to be flat to down 9 per cent and below current analyst expectations.

That guidance "dashed some of the goodwill generated by the 4Q results," the analyst said.

Mr. Johnson is maintaining his "outperform" rating but raising his target price to $29 from $27.

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In other analyst actions:

West Fraser Timber Co. Ltd., Canfor Corp., and Interfor Corp. were all initiated with a rating of "market perform" by BMO Nesbitt Burns. The target price for Canfor is $29 (Canadian) per share. The Interfor target price is $22 (Canadian) per share.

Nike Inc. was raised to "outperform" from "neutral" at Robert Baird. The 12-month target price is $115 (U.S.) per share.

Veresen Inc. was downgraded to "market perform" from "outperform" at FirstEnergy Capital. The 12-month target price is $16.50 (Canadian) per share.

Gibraltar Industries Inc. was raised to "overweight" from "sector weight" at KeyBanc. The 12-month target price is $18 (U.S.) per share.

Wolverine World Wide Inc. was raised to "outperform" from "neutral" at Robert Baird. The 12-month target price is $38 (U.S.) per share.

Madison Square Garden Co. was raised to "buy" from "hold" at Topeka Capital. The 12-month target price is $97 (U.S.) per share.

Carrizo Oil & Gas Inc. was rated new "buy" at Societe Generale. The 12-month target price is $60 (U.S.) per share.

Genesco Inc. was downgraded to "neutral" from "outperform" at Robert Baird. The 12-month target price is $76 (U.S.) per share.

S&T Bancorp Inc. was downgraded to "market perform" from "outperform" at Raymond James.

With files from Bloomberg News

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