CIBC World Markets analyst Barry Cooper slashed his target on Agnico-Eagle Mines Ltd. after the gold miner recently shut down its Goldex mine in Quebec because of rock instability and flooding.
Agnico is studying reopening the mine next year on the western side of the deposits where the rock is more stable, but provides no guarantee it will happen. Last week, it reported a $81.6-million (U.S.) loss in the third quarter, including the writeoff for the Goldex operation.
“While we were concerned that it was a safety aspect that primarily was responsible for closing the mine, it appears the decision was more induced by the potential for further financial impacts,” Mr. Copper said in a research report. Agnico shares have plunged since the mine closing, and “we think there may even be some further downside,” he added.
The Goldex woes come after Agnico overcame operating problems at its Nunavut-based Meadowbank mine, which began producing last year. Agnico has doubled the cash part of its stock-and-cash offer for Grayd Resource Corp. to help make up for its falling stock price.
Downside: The analyst maintains his “sector performer” rating, but cut his 12- to 18-month target by $31 to $60 a share.
RPC Inc. (RES-NYSE)
The oil field services company is “one of the cheapest” in its group now that its shares have fallen on expectations that it is unlikely to be a near-term takeover target, said Canaccord Genuity analyst Scott Burk. Unlike most of its peers, RPC hasn’t participated in the rebound over the last month, he said.
Upside: Mr. Burk upgraded RPC to a “buy,” but is keeping his one-year target at $24 (U.S.) a share.
MacDonald Dettwiler and Associates Ltd.
TD Securities analyst Doug Taylor raised his rating on the provider of space and information technology based on a stronger outlook for earnings following solid third-quarter results. “We suggest investors increase bets ahead of potentially significant bookings activity in the first half of 2012.”
Upside: Mr. Taylor raised his rating to a “buy,” and boosted his one-year target by $5 to $55 a share.
Dundee Securities analyst Richard Kelertas reduced his target on Canfor because of a slower-than-anticipated rebound in the U.S. housing market and weak pulp markets. But he still likes Canfor’s prospects based on expected stronger lumber demand from Asia and a moderate U.S. housing recovery late next year.
Downside: He cut his one-year-target on the forest products company by $4 to $15.50 a share, but maintained his “buy” rating.
Power Financial Corp. (PWF-TSX)
BMO Capital Markets analyst John Reucassel cut his target on the financial holding company because of reduced profit estimates for two units, including IGM Financial Inc. and Great-West Lifeco Inc. Power Financial, however, still is attractive based of its valuation and above-average earnings prospects for these two subsidiaries, he added.
Downside: The analyst reduced his one-year target by $1.50 to $33.50 a share, but maintains his “outperform” rating.
Follow us on Twitter: