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Eye on Equities

Analysts hike price targets on AGF, Canadian Helicopters Add to ...

AGF Management Ltd. reported earnings this week that met Street expectations, but Canaccord Genuity analyst Scott Chan believes the stock won’t move much until investors regain their appetite for equity funds. “We believe that continued flows into fixed income and balanced funds at the expense of equity funds will continue to strain AGF’s retail fund flows this year,” he said.

Upside: Mr. Chan raised his price target by 50 cents to $15.50 and maintained a “hold” rating.

Read More: AGF first-quarter profit drops 11%

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Canadian Helicopters Group Inc. blew past expectations in reporting fourth-quarter results, with adjusted earnings per share of 78 cents almost double the average analyst forecast. Desjardins Securities Inc. analyst Benoit Poirier believes the company could exit 2012 debt-free based on its strong cash flows, which will position the company well for further acquisitions.

Upside: Mr. Poirier raised his price target by $2 to $35 and maintained a “buy” rating.

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CVTech Group Inc. , a management company that sells power transmission systems and constructs electrical power houses, reported “light” margins in its fourth quarter as it suffered from a lack of investment in the U.S. electric infrastructure market, noted Versant Partners’ Massimo Fiore. “We believe that the company will continue to suffer from difficult conditions in the U.S. at least through the first half of 2012,” he said.

Downside: Mr. Fiore cut his price target to $1.15 from $1.50 and downgraded the stock to “neutral” from “buy.”

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For the second time in six years, Centerra Gold Inc.’s flagship Kumtor mine in the Kyrgyz Republic has lowered production guidance due to unexpected ground movement. Even though this year’s output forecast was cut by 33 per cent, CIBC World Markets Inc. analyst Alec Kodatsky believes the stock is still trading at attractive valuations relative to peers. “We believe Centerra offers compelling value with production and cost improvements over the next two years,” he said.

Downside: Mr. Kodatsky cut his price target by $6 to $26 and maintained a “sector outperformer” rating.

Read More: Centerra slashes output forecast, shares fall

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Fortuna Silver Mines Inc. reported a disappointing fourth quarter, with a loss of 1 cent per share, partly due to higher costs at its Caylloma project in Peru, increased taxes, and foreign exchange charges. The outlook isn’t promising, either, with cash costs expected to rise significantly because of declining grades at Caylloma. Still, Canaccord Genuity analyst Nicholas Campbell suggests the stock has sold off too much on the news given its strong balance sheet and growth profile - and sees a longer-term buying opportunity.

Upside: Mr. Campbell cut his price target to $7 from $9.50 but maintained a “speculative buy” rating.

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