Raymond James Ltd. analyst Kenric S. Tyghe has trimmed his fiscal fourth-quarter sales estimates for Gildan Activewear Inc. amid signals from others in the apparel industry that unit volumes are a little softer than expected. As well, “promotional activity in the wholesale channel remains elevated relative to our expectations,” he said.
Downside: Mr. Tyghe cut his price target by $4 to $41 (U.S.) but reiterated an “outperform” rating.
ARC Resources Ltd. is a “quality, core holding” for those seeking exposure to Canadian intermediate oil and gas explorers and producers, a sector many investors will gravity towards during economic uncertainty, said CIBC World Markets Inc. analyst Jeremy Kaliel. “At current levels, however, we nonetheless consider shares of ARC fairly valued today,” he added.
Upside: Mr Kaliel maintained a “sector performer” rating and raised his price target by 50 cents to $28.50 to reflect new information on land positions in the company’s key resource plays.
Wild Stream Exploration Inc. third-quarter cash flow was slightly below the Street consensus due to lower-than-expected crude sale prices, but the company posted strong production growth, noted Desjardins Securities Inc. analyst Allan Stepa. “We continue to believe that Wild Stream has the strong financial flexibility and proven management team required to execute an aggressive 2012 drilling program and continue exploiting its growing drilling inventory,” he commented.
Upside: Mr. Stepa maintained his “top pick” rating and 12-month target price of $16.50.
AT&T Mobility LLC has selected Exchange Income Corp.’s WesTower subsidiary as a provider of telecommunication infrastructure services in a contract that could be worth more than $500-million over three years. “We believe this contract, if properly executed and once fully ramped up, could potentially allow the company to increase its dividend, which currently stands at $1.62, or 7.6 per cent,” commented Laurentian Bank Securities analyst Ben Vendittelli.
Upside: Mr. Vendittelli raised his price target by $3 to $30 and maintained a “buy” rating.
Victoria Gold Corp.’s , which completed a share offering earlier this month, should now have enough cash to get its flagship Eagle gold project in the Yukon to a construction decision in the second half of 2012, said National Bank Financial analyst Paolo Lostritto. He thinks the company will have less of a funding challenge in the turbulent markets than others in the industry because its projects are less capital intensive.
Upside: Mr. Lostritto resumed coverage with an “outperform” rating and $1 price target.