EQUITABLE GROUP INC. (ETC-TSX)
The shares of Equitable Group Inc.ETC-T, a first-mortgage lender to customers unable to meet conventional bank criteria, are "downright cheap" trading at 5.9 times forecast 2009 share profit and 0.8 times book value, said Jennings Capital analyst Marc Charbin.
Upside: The shares are rated "buy" with a price target of $24.50. The share profit is forecast at $2.89 in 2009 and $3.23 in 2010.
CSX CORP. CSX-NYSE)
$29.85 U.S., up $1.69
CSX Corp.CSX-N, a railway company, is trading at a price-to-earnings multiple 22 per cent below its peers, when it should be trading at a premium valuation, say analysts with UBS Securities.
Upside: CSX has been increased to the "U.S. top pick" from second place and reiterated a "buy" with a price target of $51 (U.S.) by UBS. The share profit is forecast at $2.94 in 2009 and $3.50 in 2010.
PALM INC. (PALM-NASDAQ)
$11.17 U.S., up $1.05
Palm Inc. PALM-Q is "just getting started" penetrating the smart-phone market and it will be among those taking market share from the handset incumbents, said Mike Abramsky, an analyst with RBC Dominion Securities. Its "Pre" phone is experiencing strong demand with its touch-screen user interface, keyboard and other features.
Upside: The shares are rated "outperform" and the price target was raised to $14 (U.S.) from $12.
ALTERA CORP. (ALTR-NASDAQ)
$16.24 U.S., up 56¢
Altera Corp.ALTR-Q, a manufacturer of semiconductors, is experiencing strong demand from China and distributor inventories are lean at a time when factory utilization rates are climbing, said Citigroup Global Markets analyst Glen Yeung.
Upside: The shares are reiterated "buy" with a price target of $21 (U.S.). The share profit estimate for 2009 has been increased to 64 cents from 61 cents and the 2010 profit forecast is 98 cents a share.
S&P 500 INDEX, DAILY CLOSE
910.33, up 23.33
The powerful move in the S&P 500 suggests the "rally could moderate meaningfully over the next several months," said Tobias Levkovich, chief equity strategist at Citigroup Global Markets. "Nonetheless, there are no signals of a major correction, either, and thus this should not be seen as a warning shot for market problems in the near term."
Upside: An appreciation in the S&P 500 to 1,000 still seems reasonable, he said.