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The Onex Corp. logo is displayed at the company's annual general meeting in Toronto on Thursday, May 10, 2012. (Nathan Denette/THE CANADIAN PRESS)
The Onex Corp. logo is displayed at the company's annual general meeting in Toronto on Thursday, May 10, 2012. (Nathan Denette/THE CANADIAN PRESS)

The time to buy Onex has arrived, says Canaccord Add to ...

Inside the Market's roundup of some of today's key analyst actions

The majority of Onex Corp’s private equity investments are now posting earnings growth, thanks to an improving operating environment and management’s efforts to boost efficiencies, said Canaccord Genuity analyst Scott Chan.

He upgraded the stock to “buy” from “hold,” commenting that “it is now appropriate to value the company at a premium to net asset value, as we are confident in management’s abilities to drive higher expected returns versus peers.”

Upside: Mr. Chan also raised his price target to $52.50 from $45.


Eldorado Gold Corp.’s share price has been discounted “too heavily” for political risk because of its operations in Greece, and the miner can produce above-average gains for investors, Raymond James analyst Brad Humphrey said.

“We believe the company is positioned to outperform its peers, supported by its enviable production and cash cost profile, backed by a management team with a track record of executing in challenging jurisdictions,” Mr. Humphrey wrote in a research note. “Boasting an impressive growth profile for an intermediate producer with our estimated 80 per cent growth through 2015, Eldorado will use 2013 to prepare the stage for the notable growth anticipated over the coming years.”

Upside: Mr. Humphrey rates the stock “outperform” and has a $18 (U.S.) price target.


Catamaran Corp. will provide investors with “positive commentary” in many areas when it announces fourth-quarter results on Thursday, said Cantor Fitzgerald Canada analyst Tom Liston.

Its recent acquisition of Catalyst Rx is likely to provide more than the targeted $125-million in synergies in the first 18-24 months, while its margins should be strengthened by a trend towards higher spending in specialty and generic prescription drugs, Mr. Liston said.

Upside: Mr. Liston rates the stock “buy” and has a $65 (Canadian) price target.


Pan American Silver Corp.’s defensive traits will appeal to investors in tough market conditions, said Canaccord Genuity analyst Rahul Paul.

“In our view, the market appears to be pricing in the uncertainty created by restrictive Argentinean policies,” Mr. Paul said in a research note. However, the miner has a strong balance sheet and free cash flow from operating assets, and also offers exploration and production growth, financial discipline and higher dividends or share buybacks.

Upside: Canaccord Genuity raised its rating on the stock to “buy” from “hold” and the price target to $23.50 (U.S.) from $22.


North American Palladium Ltd. offers long-term growth potential and significant leverage to the commodity price, but funding requirements and execution risk could limit near-term upside, said RBC Dominion Securities analyst Sam Crittenden.

He downgraded the palladium producer to “sector perform” from “outperform,” noting the company faces a capital shortfall of $40-million in 2013 and has $67-million in debt due in 2015. “We believe PDL would need to refinance or extend the terms of the long-term debt based on our cash flow estimates,” he said.

Downside: Mr. Crittenden cut his price target to $1.75 from $3.


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


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