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Canada's DHX Media has acquired In the Night Garden, Teletubbies and 10 other children's series with the purchase of the U.K.'s Ragdoll Worldwide Ltd. for approximately $28.4-million.DHX MEDIA LTD

Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day. For breaking analyst actions prior to market open every day, read our Before the Bell morning report.

DHX Media Ltd.'s recent acquisition of Epitome Group highlights once again "the uncanny ability" of the company to find the right acquisitions at the right price, adding real value to the stock in multiple ways, said Canaccord Genuity analyst Aravinda Galappatthige.

DHX Media, the Halifax-based children's TV powerhouse, said last week it paid $33-million for the purchase of Epitome Pictures, which produces the Degrassi TV franchise.

The purchase was valued at an enterprise value of five times earnings before interest, taxes, depreciation and amortization based on 2013 financial results - half of DHX's trading multiple before the announcement, he noted.

Beyond boosting DHX earnings and free cash flow by about 8 to 12 per cent, Mr. Galappatthige said it results in other benefits, including adding an iconic teen brand to the DHX library, which will strengthen the company's position with major distributors, and gives DHX a sizable Toronto studio worth close to $7-million.

"Given the track record that DHX has built up in M&A of late, we expect that the company has the potential to keep tucking in accretive acquisitions in the future as well," he said in a research note. "This is also because we believe there could be more targets out there, particularly private companies with attractive content and reasonable financial returns, but in most cases lacking adequate financing and the distribution platform to take it to the next level."

"In this backdrop, DHX is well positioned to emerge as the primary consolidator in the space given its growing relevance in the financial markets and well developed relationships with key distributors, particularly digital players such as Youtube/Google, Netflix, Hulu and others," he added.

Mr. Galappatthige raised his price target to $6.70 (Canadian) from $6.25 and reiterated a "buy" rating.

The analyst consensus price target for DHX Media over the next year is $6.34, according to Thomson Reuters.

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Citing an improved balance sheet and a serious supply disruption in platinum group metals because of ongoing South African labour unrest, CIBC World Markets upgraded North American Palladium Ltd. to "sector performer" from "sector underperformer."

It also raised its price target to 60 cents (Canadian) from 50 cents.

North American Palladium's main asset is the Lac des Iles mine in Ontario. While far removed from South Africa, where most palladium is produced and subject to chronic labour issues, the company has consistently failed to deliver a mine that could generate positive free cash flows. The company's balance sheet had also become increasingly stretched.

But a recent financing has removed the near-term funding squeeze and bought the company more time to put the mine on track, noted CIBC analyst Leon Esterhuizen.

Meanwhile, a supply squeeze is intensifying in the sector. A three-month strike in South Africa affecting over 60 per cent of the country's production should cut about 800,000 ounces of platinum supply and 400,000 ounces of palladium from the market. That's about 10 per cent of total annual platinum supply - including scrap and recycling - and 5 per cent of palladium supply, enough to tighten any excess inventories, CIBC said.

There has been some recent pressure on platinum group metal prices, possibly because of "buy the expectation and sell the fact" action as the strike action continues.

"Still, we don't think the time to be selling is now. Simply put, although it is week 11 of the strike, actual reductions in metal supply to the market are only just starting to take effect," Mr. Esterhuizen said.

"And we don't believe the rally is done yet. Indeed, we believe it could have quite some way to go. The metal lost to supply represents a very quick way to clear stocks that have been damaging price appreciation, while some interesting new ETF listings could upset demand by adding substantially more to an already supportive demand picture," he said.

Mr. Esterhuizen also thinks the amount of metal lost to the strike activity could turn out to be significantly more than anticipated, given how long it is lasting and the difficulties that will be encountered upon restarting production - especially considering the exceptionally low morale among the workforce.

The analyst consensus price target for over the next year is 84 cents.

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Enrollment at Weight Watchers International Inc. is continuing to deteriorate, said Credit Suisse analyst Glen Santangelo, who cut his price target to $20 (U.S.) from $24.

Back in mid-February, management warned that its "recruitment trajectory worsened" due to increased competition and an underperforming marketing campaign. One of its problems is a host of low-cost or no-cost smartphone apps that offer the promise of weight loss, cutting into Weight Watchers' traditional model of in-person meetings and high monthly fees.

Mr. Santangelo's analysis of the most up-to-date trends suggests the disappointing enrollment trends experienced in January continued in February and March.

"While some seasonal decay is to be expected, we believe the rate of decay continues to reflect the intensifying competitive landscape which could lead to a challenging 2014," Mr. Santangelo said. "We would advise clients to remain on the sidelines as challenged fundamentals could ultimately be offset by unique activity from either the company or the majority shareholder."

He maintained a "neutral" rating. The analyst consensus price target over the next year is $19.50.

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Air Canada should have more to show for its recent efforts to boost profitability, said Raymond James analyst Ben Cherniavsky.

"Despite last week's news that the company is trimming its capacity growth, we believe industry ASMs [available seat miles] remain too high," said Mr. Cherniavsky. "We also continue to view WestJet's expansion into the lucrative regional, business, transborder, and transatlantic markets as a direct threat to Air Canada's profitability."

Mr. Cherniavsky maintains his "underperform" rating and raised his target price by a dollar to $6 (Canadian). The analyst consensus price target over the next year is $9.16, according to Thomson Reuters.

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CIBC World Markets analyst Mark Petrie  sees little reason to expect improved fortunes for Reitmans (Canada) Ltd.

The retailer reported weak fourth-quarter results, noted Mr. Petrie, with same-store sales falling 2.3 per cent. Gross margins were down significantly and continue to be pressured by competitors, a weaker Canadian dollar, and challenges at its Smart Set retail chain. As a result, "it is difficult to foresee significant near-term fundamental improvements in the retail operations," he says.

On the upside, Reitmans does have a healthy balance sheet and, post dividend cut, positive free cash flow. "Though the dividend yield is not overly compelling, it appears to be safe."

Mr. Petrie  maintains his "sector performer" rating and cut his price target by a dollar to $7 (Canadian). The analyst consensus price target over the next year is $6.50, according to Thomson Reuters.

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In other analyst actions:

Citibank downgraded Domtar to "sell" from "neutral" and cut its price target to $90 (U.S.) from $106.

Canaccord Genuity downgraded Newalta to "hold" from "buy," citing the stock's recent strong run. It maintained a $20 (Canadian) price target.

Canaccord Genuity hiked its price target on Transition Therapeutics to $13.25 (Canadian) from $9.80 and reiterated a "speculative buy" recommendation.

Jennings Capital downgraded SilverCrest Mines to "hold" and cut its target to $2.25 (Canadian) from $2.75.

Barclays raised its price target on Cogeco to $59 (Canadian) from $54 and maintained an "overweight" rating; it also raised its target on Cogeco Cable to $61 from $56 and maintained an "overweight" rating.

Desjardins Securities initiated coverage on Allied Properties REIT with a "buy" rating and $38 (Canadian) price target; on Dundee REIT with a "hold" rating and $30 price target; and on H&R REIT with a "buy" rating and $25 price target.

SunTrust Robinson Humphrey upgraded Yelp to "buy" from "neutral" but cut its price target to $85 (U.S.) from $100.

Credit Suisse raised its price target on Nasdaq OMX Group to $40 (U.S.) from $35 and reiterated a "neutral" rating.

Wunderlich Securities downgraded Cisco to "hold" from "buy" and cut its price target to $24 (U.S.) from $25.

Wells Fargo downgraded Dr. Pepper Snapple to "underperform" from "market perform" and cut its price target range to $46-$48 from $47-49.

BMO Nesbitt Burns upgraded Eli Lilly to "market perform" from "underperform" and hiked its price target to $62 (U.S.) from $50.

Stifel Nicolaus upgraded Nike to "buy" from "hold" with a price target of $87 (U.S.).

UBS raised its price target on Whole Foods Market to $70 (U.S.) from $62 and maintained a "buy" rating.

UBS upgraded Sprouts Farmers Market to "buy" from "neutral" and raised its price target to $43 (U.S.) from $41.

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

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