Gildan products.
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day.
Parallel Energy Trust had little choice but to slash its dividend given the slide in oil prices, RBC Dominion Securities analyst Shailender Randhawa said.
On Thursday, Parallel released its 2015 capital budget and announced a 50-per-cent cut to its distribution, citing the need to maintain "financial flexibility" amid market volatility.
"Although painful, we view the distribution cut as a necessary step to maintain Parallel's financial liquidity in the current commodity price environment," Mr. Randhawa said.
He reduced his price target on Parallel's stock to $2.50 (Canadian) from $4, while maintaining a "sector perform" rating.
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Reitmans (Canada) Ltd.'s decision to close its Smart Set retail chain should not materially affect Calloway Real Estate Investment Trust, Desjardins Securities analyst Michael Markidis said.
Although Reitmans is Calloway's fifth biggest tenant, the REIT has only 11 Smart Set stores in its portfolio. And most of the existing Smart Set chain is expected to be converted to other Reitmans banners.
"With about three years of average term remaining, Calloway should have a reasonable amount of time to backfill with replacement tenants in the event that any of these 11 locations are closed," Mr. Markidis said.
"We are drawn to Calloway for its modern asset base and stable cash flow profile, which is bolstered by the REIT's largest tenant, Walmart."
He reiterated a "buy" recommendation on Calloway's stock and a $30 (Canadian) price target.
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All eyes will be on Gildan Activewear Inc.'s 2015 guidance when the company reports its fourth-quarter earnings next week, RBC Dominion Securities analyst Sabahat Khan said.
To support the stock's current valuation, forecasted growth in earnings-per-share for the coming year will need to be in the 15 to 20 per cent range, Mr. Khan said.
"We believe guidance in excess of the fiscal 2015 consensus will require meaningful gains in the retail channel and a stronger-than-expected U.S. printwear market."
Mr. Khan reiterated an outperform rating and a $69 (U.S.) price target.
Tim Shufelt