Former Heenan Blaikie lawyers were at the heart of the Osler Hoskin & Harcourt team that helped shepherd through the acquisition of online poker operators PokerStars and Full-Tilt Poker by Quebec-based Amaya Group.Ryan Remiorz/The Canadian Press
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day.
Industrial Alliance Securities analyst Neil Linsdell upgraded Amaya Gaming Group Inc. to "buy" from "hold" and significantly boosted his price target after the company Friday announced better-than-expected third-quarter profitability and cash flow.
The online gaming company reported adjusted EBITDA of $108-million, well ahead of the consensus estimate of $91-million.
Mr. Linsdell's more upbeat assessment of the stock is based primarily on the company's growth trajectory.
"Amaya will continue to trade based on the expectations of its PokerStars and Full Tilt assets, as the company expands its offering of online poker and casino games around the world, and attempts to further penetrate the liberalizing U.S. online gaming market," he said in a research note. "In 2015, we will continue to see Amaya build-out these two platforms and use the sale of Cadillac Jack to pay down high interest debt."
He raised his price target to $44 (Canadian) from $31. The analyst consensus price target for Amaya Gaming over the next year is $36.17, according to Thomson Reuters data.
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A softer outlook for the Alberta market, as well as strong recent price appreciation in its units, has prompted BMO Nesbitt Burns analyst Heather Kirk to downgrade Boardwalk Real Estate Investment Trust to "market perform" from "outperform."
Growth in the REIT's same-property net operating income has been led by its assets in Alberta. "However, lower oil prices, weakness in Fort McMurray and a softening occupancy may indicate clouds on the horizon," warned Ms. Kirk. "Growth in Calgary and Edmonton is trending down from about 5 per cent to 9 per cent in 2012 and 2013, and Fort McMurray is facing market challenges due to new supply and low oil prices."
She still views Boardwalk as a core holding, but with shares up about 18 per cent year to date and the cloudier outlook for market fundamentals in Alberta, she no longer believes investors need to snap up units in the REIT. Her price target remains at $72.50 (Canadian). The analyst consensus price target over the next year is $72.88.
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Shares of Alaris Royalty Corp. have been downgraded by Raymond James Theoni Pilarinos after surging more than 20 per cent since early May.
"While the fundamentals of the business remain strong, the stock has run 22 per cent (vs. TSX of zero per cent) since our upgrade on May 6," said Ms. Pilarinos. "In addition, we believe that the market is already accounting for an active close to the year in terms of deal flow at the stock's current levels. Accordingly, we recommend investors take profits and wait for a more attractive entry point."
Ms. Pilarinos downgraded Alaris to "market perform" from "outperform" and maintained her $34.50 (Canadian) target price. The analyst consensus price target is $35.30.
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Shares of Procter & Gamble Co. have been downgraded after hitting an all-time high.
Canaccord Genuity analyst Alicia Forry says the company's turnaround efforts have paid off, including a general de-layering of the organization, the successful re-launch of Pantene in the U.S. and the launches of Tide Simply and Gillette Flexball.
"While streamlining the business should improve the group organic sales growth, we feel the share price now captures most of the potential upside in the base business over the medium term," said Ms. Forry.
Ms. Forry downgraded P&G to "hold" from "buy" and maintained her $89 (U.S.) target price. The analyst consensus price target is $89.84, according to Thomson Reuters.
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The next few quarters are expected to be bright for Algonquin Power & Utilities Corp., says Desjardins Securities analyst Bill Cabel.
Mr. Cabel explains that while Algonquin's third-quarter 2014 earnings missed expectations due to adverse weather conditions, the next six months will be active as three wind projects are on track for fourth quarter 2014 and first quarter 2015, followed by an anticipated dividend increase with second-quarter 2015 results in August
"In Algonquin, we believe investors will find long-term stable operations combined with significant relatively low-risk growth and a strong likelihood for continued annual dividend increases to further fuel share price appreciation," said Mr. Cabel. "Additionally, we expect M&A activities to provide further catalysts and valuation upside."
He maintains his "top pick" rating and $10.50 (Canadian) target price. The analyst consensus price target is $9.58, according to Thomson Reuters.
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In other analyst actions:
Jacob Securities downgraded Alterra Power to "hold" from "buy" with a price target of 40 cents (Canadian).
Jacob Securities downgraded Primary Energy Recycling to "hold" from "buy" with a price target of $5.40 (Canadian).
BMO Nesbitt Burns slashed its price target on Gasfrac Energy Services to 60 cents (Canaidna) from $1.50 and maintained a "market perform" rating.
BMO Nesbitt Burns raised its price target on George Weston to $107 (Canadian) from $93 and maintained a "market perform" rating.
TD Securities downgraded Dream Office Real Estate Investment Trust to "buy" from "action list buy" with a price target of $32 (Canadian).
Cormark Securities upgraded K-Bro Linen was upgraded to "buy" from "market perform" with a price target of $47 (Canadian).
Cormark Securities downgraded Luna Gold to "market perform" from "buy" with a price target of 45 cents (Canadian).
Cormark Securities upgraded Midway Gold to "speculative buy" from "market perform" with a price target of $1.10 (Canadian).
Cormark Securities upgraded OceanaGold to "top pick" from "buy" with a price target of $4 (Canadian).
TD Securities downgraded Spyglass Resources to "reduce" from "hold" with a price target of 60 cents (Canadian).
Wells Fargo downgraded Hertz Global to "market perform" from "outperform" and lowered its price target to $20-24 from $30-33.
Macquarie upgraded Progressive Waste Solutions to "neutral" from "underperform" with a price target of $31 (U.S.).
BMO Nesbitt Burns downgraded Boise Cascade to "market perform" from "outperform" and raised its price target to $40 (U.S.) from $38.
With files from Bloomberg
Darcy Keith