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Corrected: Brick on tap for bigger market share

The Brick's Heartland location in Mississauga, December 2, 2010.

J.P. MOCZULSKI/j.p. moczulski The Globe and Mail

There is more on tap at the Brick Ltd. now that the company looks to be "gaining market share from its peer group," says BMO Nesbitt Burns analyst Stephen MacLeod. Any risk of slowing consumer spending is mitigated by the fact that the company is in much better shape than it was heading into the last slowdown because of a "strong cash position of almost $140-million (as of the first quarter) and better quality inventory," he said.

Upside: Mr. MacLeod raised his one-year target to $5 a share from $4.

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Canaccord Genuity analyst Scott Chan slashed his targets on asset managers to reflect falling assets during May. " CI [Financial Corp.] remains our top pick," he said. "If markets improve, we believe CI is the only large-cap manager with the capacity to raise its regular dividend by year-end."

Downside: He cuts his one-year target on CI to $25; AGF Management Ltd. to $13.25; IGM Financial Inc. to $44 and Sprott Inc. to $5.25.

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In the past couple of months, C&C Energia Ltd. has completed drilling five wells in Colombia's Llanos Basin. Two of the three exploration wells were successful, but one "tested well below expectation," said CIBC World Markets analyst Ian Macqueen.

Downside: The analyst maintains his "sector outperform" rating, but cut his one-year target to $11.50 a share from $12.

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The 61-per-cent drop in share price of Crew Energy Inc. to levels seen in the 2009 financial crisis has been "stunning," said Dundee Securities analyst Jason Konzuk. The market obsession with its problems in the Princess area has "obscured a resource-rich asset base, deep with drilling opportunities," he said.

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Upside: Mr. Konzuk initiated coverage on Crew with a "buy" rating, and one-year target of $10.75 a share.

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Saputo Inc. reported fourth-quarter results ahead of expectations, but "earnings slightly below our forecast," said CIBC World Markets analyst Mark Petrie. Because organic growth is challenging, the growth is in mergers so the dairy and cheese giant continues to work on the next deal.

Upside: Mr. Petrie maintains a "sector performer" rating with a one-year target of $46 a share.

Editor's Note: An earlier online version of this article incorrectly referred to the Brick Ltd. as Brick Brewing Co. The error has been corrected.

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