WHAT ARE WE LOOKING FOR?
Stocks with the most bullish expectations.
MORE ABOUT TODAY'S SCREEN
We’re spending the week crunching analyst expectations with the help of Thomson ONE, a portfolio tool used by institutional investors. Today we’ll look at stocks with the greatest difference between the current stock price and median analyst target price. Analysts must have a mean recommendation of “buy” or “strong buy” on the stock and we’ll keep the list to Canadian stocks with market capitalizations above $1-billion.
WHAT DID WE FIND OUT?
Analysts tend to be overly bullish on stocks, so as usual, make sure you do more research if you’ve found a good investment idea in this list.
The largest name near the top of the list is Teck Resources and anyone who has owned it from last spring till now must be feeling pretty good with themselves. But analysts don’t think it is time to sell, as they expect it to rise another 43 per cent.
Scotia Capital analyst Lawrence Smith sees the stock rising to $52, despite the fact the company missed his first-quarter earnings estimate. The miss was largely due to underestimating depreciation and he has become more bullish on coal for the remainder of the year. After skating near bankruptcy more than a year ago, the company’s finances are in much better shape now, he said in a recent research note.
“We expect Teck will soon return to investment-grade rating at all rating agencies.
