Inside the Market’s roundup of some of today’s key analyst actions
Despite Pet Valu Holdings Ltd.’s (PET-T) quarterly results topping projections, Stifel analyst Martin Landry now sees its the risk-reward proposition for its shares as “less attractive at current levels,” leading him to downgrade his rating to “hold” from “buy” previously.
“Pet Valu reported Q1/24 results which were higher than expected,” he said. “However, investments in supply chain infrastructure and advertising/promotions are expected to weight on Q2/24 and Q3/24 results, translating in potential EPS declines year-over-year, which may disappoint investors. Hence, we have reduced our earnings for the remainder of 2024 by 5 per cent. In addition, our 2025 EPS estimates are reduced by 5 per cent to reflect the longer than expected margin headwinds from Pet Valu’s supply chain transformation. Given this backdrop, we do not expect a valuation multiple expansion nor significant earnings upside. As such, Pet Valu’s shares have reached a level where the risk/reward profile is less attractive in our view, given they are valued at 18 times forward earnings, representing a PEG ratio of approximately 1.5 times, assuming normalized earnings growth potential.”
Shares of the Markham, Ont.-based retailer slid 3.5 per cent on Tuesday following the premarket quarterly release, which saw sales rise 4 per cent year-over-year to $261-million, largely in line with expectations, driven by a 0.8-per-cent gain in same-store-sales and store network growth.
“Traffic declined year-over-year for the second consecutive quarter as customers purchased larger quantities to stretch their dollars and fight inflationary pressures,” said Mr. Landry. “However, cost-cutting initiatives implemented last year translated in a strong Adjusted EBITDA margin of 21.7 per cent, up 220 basis points year-over-year, and higher than our expectations of 20 per cent. This led to the earnings beat with adjusted EPS of $0.35, up 9 per cent year-over-year and higher than our estimate of $0.29 and consensus of $0.31.”
“Management expects Q2/24 same-store sales to grow at a similar pace to Q1/24 of 0.8 per cent. This is slower than consensus expectations of 2.5 per cent and suggests a deceleration of same-store-sales growth on a 2-year stack basis from 10 per cent in Q1/24 to roughly 7 per cent in Q2/24. Management is planning to invest in promotional activity in Q2/24 to stimulate consumer demand, which could result in market share gains. Q2/24 EBITDA margin is expected to be flat year-over-year, which could lead to an EPS decline of low-single-digits year-over-year in Q2/24, lower than previous expectations for a growth of low single digits percentage.”
In justifying the change to his rating, Mr. Landry pointed to two factors: the expectation for “more pronounced and longer than previously expected” margin headwinds and seeing its shares as “fairly valued.”
“We are reducing our EPS estimate by 5 per cent for the remainder of 2024 and also for 2025,” he noted. “It will take several years for the company to fully leverage its large supply chain investments and for gross margins to return above 35 per cent. As such, 2024 is experiencing subdued EPS growth in the range of negative 3 per cent to up 1 per cent year-over-year. In addition, 2025 EPS growth could remain underwhelming (mid-single-digits percentage) due to further increases in the cost structure as the Vancouver DC comes online, resulting in an 3-year EPS CAGR [compound annual growth rate] in the low-single-digits.”
“Pet Valu’s shares have performed well up 8 per cent year-to-date, outpacing the S&P TSX Consumer Discretionary Index, which is up 2 per cent during the same period. At these levels, we see limited multiple expansion potential. In addition, we do not see much upside to consensus estimates. Hence, we view the risk/reward profile for Pet Valu as less attractive at 18 times forward EPS, representing a PEG ratio of 1.5 times assuming a normalized earnings growth rate of 10-15 per cent.”
With his forecast reductions, Mr. Landry trimmed his target for Pet Valu shares by $1 to $32. The average target on the Street is $36.88, according to LSEG data.
Elsewhere, others making target adjustments include:
* ATB Capital Markets’ Chris Murray to $41 from $42 with an “outperform” rating.
“While same-store sales growth came in better than feared in what is a seasonally weak quarter with management having called out changing consumer patterns and more aggressive promotional activity by competitors with Q4/23 results, traffic levels remain soft,” said Mr. Murray. “Guidance for Q2/24 was weaker than expected, which likely contributed to the pullback in the shares, and will require a significant reversal in recent same-store growth trends in H2/24 to meet full-year guidance. The Company opened 11 new stores in Q1/24, exiting the quarter with 794 locations. Management maintained full-year guidance calling for Adjusted EBITDA of $248-million-$254-million and 40-50 new store openings. PET delivered a decent quarter despite a challenging backdrop, and its two-pronged growth story remains intact. We would look to add to positions as valuations remain attractive as we see an H2 and 2025 recovery as feasible with additional upside.”
* CIBC’s Mark Petrie to $36 from $34 with an “outperformer” rating.
* TD Cowen’s Michael Van Aelst to $38 from $37 with a “buy” rating.
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Following “strong” first-quarter results, National Bank Financial analyst Richard Tse sees shares of Real Matters Inc. (REAL-T) “close enough to [a] bottom,” leading him to raise his recommendation to “outperform” from “sector perform” previously.
“Despite the challenging backdrop for mortgage originations, we believe Real Matters is executing well on the controllable (i.e., operations),” he said. “On that, the Company gained share with four of its top 7 U.S. Appraisal clients and with two of its top clients in Canada on a year-over-year basis with sequential share gains with its Tier 1 Lender in T&C. Beyond that, Real Matters launched two new clients in T&C while concurrently adding two new clients and launching one new channel in Canada. Further, we see scaling RFPs (particularly in T&C). And with last year’s efficiency measures, we see material operating leverage moving into F25.
“Looking ahead, forecasts from industry trade organizations like the Mortgage Bankers Association (MBA) suggest CY23 was a trough year for volumes and those same sources point to volumes inflecting as early as CQ3′24 (FQ4′24 for REAL). While we see those estimates coming down marginally given recent economic data points that suggest rates will remain higher for longer, we think the impact to Real Matters will be marginal. And with recent operational efficiency gains made over the past 12-18 months, we see considerable operating leverage moving forward.”
Mr. Tse was one of two analysts to upgrade the Markham, Ont.-based company, which helps mortgage lenders and other businesses manage functions such as appraisals and title searches, a day after its premarket earnings release, which sent its shares soaring 10.3 per cent on Tuesday.
Net revenue jumped 16 per cent year-over-year and 19 per cent quarter-over-quarter to $11.5-million, exceeding both Mr. Tse’s $9.8-million estimate and the consensus forecast on the Street of $9.8-million. Adjusted EBITDA returned to positive gains at $0.7-million, also topping expectations (losses of $1.4-million and $1.3-million, respectively), which he attributed to “building” operating leverage.
“Our view is the sequential pickup in revenue growth was largely driven by a combination of share gains with existing clients paired with increased volumes from the sequential pullback in rates (rates inversely related with mortgage originations), all of which helped offset the softer seasonal FQ2,” he added.
With “expectations for an inflection,” Mr. Tse raised his target for Real Matters shares to $7 from $6.50. The average target on the Street is $7.43.
Elsewhere, Canaccord Genuity’s Robert Young upgraded Real Matters to “buy” from “hold” with a $7 target, up from $6.50.
“Real Matters reported FQ2 ahead of expectations driven by modestly better volumes with EBITDA returning to positive and significantly ahead of consensus, underscoring operating leverage,” said Mr. Young. “Revenue (up 19 per cent year-over-year) and net revenue (up 16 per cent year-over-year) returned to growth for the first time since 2021. Overall, management continues to execute well through a difficult macro and origination volumes at historic lows evidenced by cost containment and market share gains. Real Matters sees OpEx staying flat through the first leg of growth and highlights idle capacity in both the U.S. Appraisal and U.S. Title segments. Given the operating leverage in FQ2 and as a result of the return to growth, we are shifting to a BUY rating.”
Meanwhile, BMO’s Thanos Moschopoulos cut his target to $6.50 from $7 with a “market perform” rating.
“We remain Market Perform on REAL and have trimmed our target price following Q2/24 results,” he said. “Results for the quarter were solid—as REAL returned to year-over-year net revenue growth for the first time in three years, while demonstrating good execution on market share and margins. However, rates have remained higher for longer, prompting us to take a slightly more conservative view of 2H/24 and FY2025. We don’t currently view the stock’s valuation as compelling relative to our forecasts, which assume a strong endmarket recovery over the coming quarters.”
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National Bank Financial analyst Maxim Sytchev is “feeling more confident” Finning International Inc. (FTT-T) following its first-quarter revenue beat, seeing the “skew in investors’ favour.”
“With recalibrated and more realistic expectations, a confident tone into H2/24E (supported by order book and easier comps) and likely stronger-for-longer EPS generation, we continue to view the FTT investment thesis in a positive risk/reward prism, as was the case post our Q4/23 upgrade (i.e., downside to low-$30s / upside to $60); 11.4 times 2025 estimates also works out to likely 13 times on through-the-cycle EPS as the earnings power of the business has been high-graded by 2 times at the top end of the range and likely by 2.5 times on the bottom end vs. the prior cycle,” he said.
On Monday after the bell, the Vancouver-based industrial equipment dealer reported net revenue for the quarter of $2.33-billion, topping both Mr. Sytchev’s $2.15-billion estimate and the consensus of $2.17-billion. Adjusted EBITDA came in at $301-million, in line with both the analyst ($302-milion) and Street ($303-million), while adjusted earnings per share of 84 cents was also in line projections (89 cents and 86 cents, respectively).
In a research report released late Tuesday titled Stock to own amid stronger commodity tape, Mr. Sytchev emphasized the “confident tone” taken by Finning’s management in the conference call with analysts, particularly on its backlog.
“Management expects PS [product support] sales to inflect in H2/24E, driven by broad-based increases in equipment utilization and sequentially easier comps,” he said. “Management once again reiterated its confidence in achieving its 7-per-cent CAGR [compound annual growth rate] target through 2025. The influx of new orders should be delivered quicker than it has been historically, which will marginally shorten the delay in associated PS inflows and improve the cash cycle. Within Canada, management noted efforts to increase the breadth of its aftersales/after service clients to further reduce revenue lumpiness, which should be easier to achieve amid more optimistic endclient capex plans (private sector expenditure expected to drive growth going forward). Similarly, the strong bidding environment in Chile – helped by rallying copper prices – should also prove conducive to pro-forma growth, aided by CAT’s improving market share in the region.”
“Following historic highs in equipment prices over the last few years, normalizing availability suggests pro-forma growth will be volume driven (the pricing commentary aligns with that of Caterpillar (NYSE: CAT; Not Rated), which expects pricing to be largely flat y/y in H2/24E). As expected, this dynamic has also translated to moderating prices for Rentals. While margins in Used and Rentals have compressed somewhat, New and PS margins remain at attractive levels. Management initiatives such as the development and growth of an OEMagnostic marketplace for used equipment should (eventually) further diversify the revenue base.”
While he trimmed his margins estimates “due to changes in product mix,” Mr. Sytchev raised his target for Finning shares to $47 from $46, reiterating an “outperform” recommendation. The average target on the Street is $48.67.
Elsewhere, other analysts making target adjustments include:
* Scotia’s Michael Doumet to $54 from $53 with a “sector outperform” rating.
“Our bullish thesis centers on an EPS re-acceleration in the 2H24,” said Mr. Doumet. “Our view is reliant on EPS resiliency in the 1H (we got it in 1Q), improved trends in product support (we expect in the 2H), and outsized FCF generation (we feel confident here) aimed at debt repayment and share repurchases.
“Western Canada construction softness was anticipated in 1Q. This construction-led transitory weakness drove 1Q declines and lowered 2Q-4Q expectations for product support: FTT expects product support to return to IR day targets (i.e., approximately 7 per cent) later in the 2H24 (vs. mid-2024 previously). This incremental softness was offset by positive surprises in equipment sales, firm new equipment/product support GM%, and SG&A. All said, our 2024E is largely unchanged, while signs of strength in South America led us to raise our 2025E. To us, 2Q will reflect a ‘rebase’ of EPS. We expect the 2H EPS re-acceleration to drive multiple expansion from near-trough levels.”
* RBC’s Sabahat Khan to $49 from $45 with an “outperform” rating.
“Q1 results were largely in line with Street estimates and likely ahead of buyside expectations (with the cautious expectations likely reflected in the share price moderation heading into Q1 reporting). The $700MM of New Equipment orders in April was a notable positive, while we believe the flat QoQ backlog was also well-received given the moderation in recent quarters from record levels. When combined with management’s outlook for Product Support growth through 2024 and beyond, we believe Finning’s valuation remains attractive at current levels,” said Mr. Khan.
* BMO’s Devin Dodge to $48 from $47 with an “outperform” rating.
“Demand in its territories remains positive and FTT is making progress on multiple initiatives to increase its market penetration, improve its resiliency and grow earnings/ FCF. We believe our 2024/2025 estimates are conservative and leave room for upside. Meanwhile, valuation is undemanding at just under 10 times our 2025 EPS estimate,” said Mr. Dodge.
* CIBC’s Jacob Bout to $49 from $45 with an “outperformer” rating.
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While he trimmed his estimates for Freehold Royalties Ltd. (FRU-T) following its first-quarter earnings release, Desjardins Securities analyst Chris MacCulloch remains bullish on its long-term potential “given its strategic positioning in most of the top oil plays in North America.”
“Unfortunately, 1Q24 results were another missed opportunity for FRU, which suffered various weather-related disruptions, particularly in the Eagle Ford where heavy rainfall negatively impacted output from its GORR [gross overriding royalty] on Marathon Oil’s assets,” he said. “However, operational headwinds have subsided, with management reiterating on the conference call that production has been restored to 15,000 boe/d [barrels of oil equivalent per day]. Arguably, the 1Q24 hiccup was a byproduct of the royalty business model—specifically, the informational lag associated with not operating assets and the inherent difficulty forecasting lumpy well pad additions south of the border. The silver lining is that operator activity remained robust across the broader North American royalty portfolio in 1Q24, which should help smooth longer-term quarterly volatility. Moreover, Canadian production has been remarkably stable despite limited M&A activity, driven in part by growth in the Clearwater where heavy oil volumes recently surpassed 500 boe/d prior to TMX coming online.”
In a note titled Building a diversified North American portfolio—it’s a Marathon, not a sprint, Mr. MacCulloch said he expects Calgary-based Freehold to remain active on the acquisition front, “particularly in the U.S. where it has developed a reputation as a serious and reliable buyer of assets, which has supported additional deal flow.”
“For context, the company highlights $530-billlion of potential mineral title opportunities in the Permian Basin within its corporate presentation, where it can execute transactions at more attractive multiples (vs Canada) at varying scales of capital,” he said. “Ultimately, further scaling of the business model should lay the foundation for future dividend hikes.”
Maintaining a “buy” recommendation for its shares, he trimmed his target to $17 from $17.25. The average is $17.93.
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Eight Capital analyst Kiran Sritharan thinks Tribe Property Technologies Inc.’s (TRBE-X) better-than-expected fourth-quarter 2023 results exhibited its “execution and focus on profitability despite the constricted macro backdrop.”
However, expecting “the extended market weakness to continue to influence performance across developers and property managers alike,” he lowered his rating for the Vancouver-based company to “neutral” from “buy” previously.
“With a slowdown in organic growth, alongside a push-out in profitability and limited access to capital, we expect Tribe’s fundamentals to be challenged in the near term,” Mr. Sritharan said. “Looking ahead, we think the potential for margin accretive M&A can benefit Tribe and bring profitability closer into view. If we don’t see M&A activity, the Q1 report (expected by the end of May) will serve as the next catalyst to revisit our target and rating.”
After pushing back his profitability forecasts while expecting the second half of 2024 to “benefit from ongoing optimization measures,” he cut his target for Tribe shares to $1 from $2. The average is $1.63.
Elsewhere, Stifel’s Suthan Sukumar cut his target to $2.25 from $3.25 with a “buy” rating.
“TRBE reported an upside print for FQ4 reflecting solid execution with better-than-expected progress toward profitability,” said Mr. Sukumar. “Despite puts-and-takes, new construction activity, positive operational/go-to-market trends post the quarter, and improving visibility to higher-margin partnership revenue growth, signal a healthy H1 growth outlook, while the Meritus acquisition paves the way for net-new growth opportunities over the mid-to-long term in Ontario and nationally. Balance sheet liquidity appears tight, but with a sticky 80-per-cent-plus recurring revenue base, reaffirmed H2 profitability target, and access to senior debt, we continue to see TRBE positioned to execute on its vision to digitize the legacy property management industry. We lower our target ... on lower estimates to reflect more conservative organic growth assumptions, but note that M&A remains the primary driver for the stock, with larger, more accretive deals to accelerate TRBE’s scale and profitability serving as a key catalyst, in our view.”
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In other analyst actions:
* TD Cowen’s Graham Ryding downgraded Timbercreek Financial Corp. (TF-T) to “hold” from “buy” with a $8 target, down from $8.50 and below the $8.45 average.
* Jefferies’ Dushyant Ailani lowered his Ballard Power Systems Inc. (BLDP-Q, BLDP-T) target to US$3.25 from US$3.50 with a “hold” rating. Other changes include: BMO’s Ameet Thakkar to US$2.85 from US$3 with an “underperform” rating., TD Cowen’s Aaron MacNeil to US$2.75 from US$2.50 with a “hold” rating, CIBC’s Krista Friesen to US$3.50 from US$3.75 with a “neutral” rating and National Bank’s Rupert Merer to US$4 from US$4.50 with a “sector perform” rating. The average is US$4.37.
* Ahead of its May 15 earnings release, BMO’s Tamy Chen cut her Boyd Group Services Inc. (BYD-T) target to $310 from $330 with an “outperform” rating. The average is $321.43.
“We believe Q1/24 will see a continuation of Q4/23 headwinds: softening demand and margin drag from new location adds. We lowered our Q1/24 SSS to 3 per cent from 4.5 per cent on recent peer read-throughs. We believe many of the demand headwinds are largely a reflection of lapping two elevated years. 2024-2025 EBITDA margin also lowered to better reflect the drag from new locations. We believe the business fundamentals remain intact, remain Outperform,” said Ms. Chen.
* RBC’s Keith Mackey cut his Calfrac Well Services Ltd. (CFW-T) target to $4.50 from $5.50 with a “sector perform” rating, while Stifel’s Cole Pereira trimmed his target to $4.50 from $5 with a “hold” rating. The average is $5.25.
“CFW reported challenging 1Q24 results that were previously telegraphed but did land below Stifel and consensus estimates,” said Mr. Pereira. “Positively, the company is already seeing a meaningful improvement in North American utilization, though segment EBITDAS will still be well below 2023 (Stifel: down 42 per cent). Additionally, the Milei government’s economic reforms in Argentina are leading to opportunities to repatriate cash out of the country near-term and potentially relocate equipment. Argentina comprises 23 per cent of our EBITDAS forecast prior to corporate costs. However, we have reduced our EBITDAS forecasts by 12 per cent in 2024 and 7 per cent in 2025, while FCF and EPS also decline. As a result, we have reduced our TP to $4.50/sh while we reiterate our Hold rating. CFW’s business should demonstrate a step-change in profitability going forward, but we remain cautious given its recent earnings volatility. However, CFW trades inexpensively at 2.3 times 2025 estimated EV/EBITDAS and 3.6 times 2025 P/E vs. TCW 3.1 times/6.7 times and STEP 2.2 times/3.7 times.”
* CIBC’s Kevin Chiang reduced his Chorus Aviation Inc. (CHR-T) target to $3.25 from $3.75, remaining above the $3.02 average, with an “outperformer” rating, while Canaccord Genuity’s Matthew Lee cut his target to $2.50 from $2.60 with a “hold” rating.
“[Monday] night, Chorus reported Q1 results that beat expectations on both EBITDA and EPS,” said Mr. Lee “While the financials were solid, our key highlight was the firm’s increased F24 aircraft sales forecast, which reflects an improving environment for the trade of assets. In our view, a more active aircraft market is crucial for Chorus’ asset-light transition, which requires both the sale of its current portfolio (US$400-million in aircraft) and the raise of US$500-million for Falko Fund 3. While management noted that fundraising progress has been limited, the firm continues to expect Fund 3 to be fully raised by the end of the year, with capital deployment occurring in F25/F26. With guidance for EBITDA and FCF raised slightly, we have increased our estimates for the year, primarily reflecting the beat in Q1. We continue to be constructive on the long-term CHR story and view Q1 as a step in the right direction but opt to remain on the sideline until we see more progress on both the sale of assets and raise of F3.”
* Desjardins Securities’ Lorne Kalmar cut his CT Real Estate Investment Trust (CRT.UN-T) target to $14.50 from $15 with a “hold” rating. The average is $15.42.
“CRT announced a 3-per-cent distribution increase and continued to deliver stable results. However, the slowdown in investment activity is expected to impact near-term FFOPU [funds from operations per unit] growth,” said Mr. Kalmar. “Further, the REIT’s elevated exposure to its sponsor limits the NOI upside from the ongoing strengthening of retail fundamentals. While the business has demonstrated its resilience, we continue to believe the REIT’s units are fairly valued at current levels.”
* Desjardins Securities’ Gary Ho bumped his Dominion Lending Centres Inc. (DLCG-T) target to $3.75 from $3.50, keeping a “buy” rating. The average is $3.88.
“DLC reported a strong 1Q beat, with funded mortgage volumes 9.3 per cent better than our expectations, leading to revenue, EBITDA and EBITDA margin all ahead of our forecast,” said Mr. Ho. “Impact—positive. With significant mortgage refinancing over the near term and a potential rate cut boosting the recovery of housing transactions, we foresee continued momentum with the DLC story (management also taking more comp in RSUs).”
* CIBC’s Scott Fletcher increased his DRI Healthcare Trust (DHT.UN-T) target to $20 from $19.50 with an “outperformer” rating, while Canaccord Genuity’s Tania Armstrong-Whitworth moved his target to $19 from $19.50 with a “buy” rating. The average is $21.55.
* BMO’s John Gibson trimmed his Enerflex Ltd. (EFX-T) target to $10 from $11, below the $11.10 average, with an “outperform” rating.
“EFX’s headline EBITDA number missed expectations, mostly due to higher-than-expected costs from its Cryo project in Kurdistan,” said Mr. Gibson. “A drone attack post-quarter has also caused a force majeure, with operations now suspended. That said, there were some very positive data points, including significant free cash and debt repayment in the quarter. We expect EFX stock to come under some pressure [Wednesday], and are decreasing our target price.”
* CIBC’s Bryce Adams raised his Ero Copper Corp. (ERO-T) target to $32 from $28.50, above the $31.50 average, with a “neutral” rating.
* CIBC’s Nik Priebe raised his Goeasy Ltd. (GSY-T) target to $230 from $220 with an “outperformer” recommendation. Other changes include: Raymond James’ Stephen Boland to $225 from $200 with an “outperform” rating, RBC’s Geoffrey Kwan to $225 from $201 with an “outperform” rating and Desjardins Securities’ Gary Ho to $205 from $190 with a “buy” rating. The average is $217.
“The slight 1Q beat vs our estimate (in line with consensus) was driven by robust loan book growth and better-than-guided revenue yields. GSY expects the loan book to reach the upper end of 2024 guidance. We are more optimistic about a delayed rate cap implementation, putting a positive bias on GSY’s three-year outlook. Credit trends remain manageable. We raised our estimates following constructive 2Q guidance,” said Mr. Ho.
* Scotia’s George Doumet cut his George Weston Ltd. (WN-T) target to $211 from $212 with a “sector perform” rating. Other changes include: BMO’s Tamy Chen to $196 from $185 with a “market perform” rating, CIBC’s Mark Petrie to $235 from $222 with an “outperformer” rating and Desjardins Securities’ Chris Li to $212 from $205 with a “buy” rating. The average is $215.29.
“Given WN’s simple structure with two high-quality assets (L and CHP.UN [Loblaw and Choice Properties REIT]) and strong financial position, we believe the current holdco discount of approximately 17 per cent is attractive and that an improvement in sentiment on the REITs could be a catalyst for the discount to narrow (similar to what happened around late 4Q22 and 1Q23),” said Mr. Li. “Following our target increase for L, we have raised our target for WN to C$212 based on an 11-per-cent holdco discount. As the discount narrows, we expect WN to outperform L.”
* RBC’s Geoffrey Kwan raised his Intact Financial Corp. (IFC-T) target to $243 from $236, above the $241.19 average, with a “sector perform” rating, while Raymond James’ Stephen Boland hiked his target to $261 from $247 with an “outperform” rating.
“Q1/24 Operating EPS was slightly below our forecast but above consensus. IFC’s near-term outlook/guidance regarding DPW growth, combined ratios, investment income, etc. are unchanged. Bigger picture, we think industry conditions remain favorable and IFC continues to execute on its growth strategy. While we view IFC as a core holding reflecting positive fundamentals, potential catalyst(s) and strong defensive attributes, we think the shares are fairly valued, hence our Sector Perform rating,” said Mr. Kwan.
* TD Cowen’s Derek Lessard bumped his K-Bro Linen Inc. (KBL-T) target to $46 from $45, exceeding the $44.92 average, with a “buy” rating.
* TD Cowen’s Menno Hulshof moved his MEG Energy Corp. (MEG-T) target to $32 from $31 with a “hold” rating. The average is $34.97.
* Mr. Hulshof increased his target for Suncor Energy Inc. (SU-T) to $52 from $50 with a “hold” rating. The average is $55.45.
Editor’s note: An earlier version of this article included a item on Citi upgraded Shopify shares. That change was actually made on April 29. The firm resent that note earlier on Wednesday. This version has been updated.
David Leeder