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Inside the Market's roundup of some of today's key analyst actions. This post will be updated with more analyst commentary during the trading day.

Dundee Industrial Real Estate Investment Trust has been the worst performing REIT on the TSX since the sector started to fall out of favour with investors this spring, but there's little reason to explain this underperformance, according to M Partners analyst Brendon Abrams.

And that, he says, has created a compelling buying opportunity.

Since April 30 of this year, Dundee Industrial REIT is down about 21 per cent, compared to the S&P/TSX Capped REIT index loss of 16 per cent. Dundee had already been down about 10 per cent on April 30 from its 52-week high of $11.75, reached on Jan. 30.

"It has been hard to precisely identify why DIR has been disproportionately impacted during this pull-back in the REIT sector," Mr. Abrams said in a research note. "Second-quarter 2013 results were considered generally in line with consensus estimates and the REIT's occupancy rate was approximately 96 per cent to close the quarter; by all accounts the REIT's portfolio appears to be performing as advertised and as expected."

He does have one theory: Dundee Industrial REIT completed its acquisition of C2C Industrial Properties Inc. this past May. The all-share transaction may have prompted C2C shareholders to sell units given that liquidity in Dundee was much greater. "However, while this may have explained some selling following the C2C closing, the persistence of selling into September defies this explanation alone," he said.

Meanwhile, Dundee Industrial is among the cheapest REITs on the TSX, trading at 8.9 times estimated fiscal 2014 estimates for funds from operations. A wider group of diversified commercial REITs on the TSX trade two multiple points higher on average, he pointed out.

This discount against peers persists despite a balance sheet and payout ratio that remains quite conservative.

Corporate insiders seem to agree that Dundee REIT has been "disproportionately hit" during the pullback in REIT values, he said. According to regulatory filings, since Aug. 1, the REIT's chairman, Michael Cooper, acquired 90,000 units at an average price of $8.52.

Target: Mr. Abrams maintained a "buy" recommendation and $11 (Canadian) price target. The average price target among analysts is $10.20, according to Bloomberg data.

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CIBC World Markets analyst Mark Kennedy upgraded Conifex Timber Inc. to "sector outperformer" from "sector performer" now that the company has secured $103-million in project financing for its 36-megawatt bioenergy plant at its sawmill in Mackenzie, British Columbia.

"We view this financing as a significant de-risking event for Conifex as completion of the bioenergy project not only provides incremental stable EBITDA, but also enhances the long-term competiveness of the Mackenzie sawmill," he said.

"Our EBITDA for 2013 is revised to $21.4-million (from $19.8 million) and our EBITDA for 2014 remains the same at $49.6-million. Our 2013 earnings per share estimate is revised to $0.34 (from $0.30) and our 2014 EPS estimate is revised to $1.43 (from $1.49)," he added.

Target: Mr. Kennedy raised his price target to $11 from $9. The average target is $10.

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Desjardins Securities analyst Keith Howlett initiated coverage on Saputo Inc. with a "buy" rating, expecting that the company's winning track record of driving earnings growth will continue.

The company has seen compounded net earnings growth of about 18 per cent since it premiered on stock markets in 1997, even while operating in the low-growth North American dairy industry, Mr. Howlett noted. Saputo accomplished this by increasing the manufacturing and financial productivity of numerous acquired businesses.

"We expect the company to continue to create value for shareholders by acquiring companies and increasing their production yields," he commented. "Saputo also appears to be subtly shifting its business mix to higher-growth product segments within and outside of North America. This may result in the acquisition of operating platforms beyond Canada, the U.S. and Argentina."

He forecasts Saputo will grow its earnings per share by 9 to 13 per cent in the medium term, and expects the company will increase its dividend payouts.

Target: Mr. Howlett set a $53 (Canadian) price target. The average target is $52.22.

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Colonial Coal International Corp. this week released a preliminary economic assessment for its Huguenot project in British Columbia. While it reported a significant increase in resources, the study suggests operating margins could be lower than what Desjardins Securities analyst Jackie Przybylowski had expected.

Target: Ms. Przybylowski cut her price target to 60 cents from 95 cents and maintained a "hold" rating. The average target is 67 cents.

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Trinidad Drilling Ltd.'s Canadian operating performance was robust in the third quarter, with an average of 35 rigs working, noted Raymond James analyst Andrew Bradford.

But the stock has been outperforming Canadian and U.S. contract drillers for four months now and is up 50 per cent since mid-May. As such, he downgraded Trinidad Drilling to "outperform" from "strong buy" even while boosting his third-quarter EBITDA forecasts.

Target: Mr. Bradford raised his price target to $11.75 from $11.25. The average target is $11.70.

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In other analyst actions today:

Canaccord initiated coverage on Facebook with a "buy" rating and $60 U.S. target.

Wedbush raised its target on Tesla Motors to $180 (U.S.) from $150 and maintained a "neutral" rating.

Morgan Stanley downgraded Carnival to "underweight" from "equalweight" and Merrill Lynch downgraded the stock to "neutral" from "buy." JPMorgan cut its price target to $32 from $34 but maintained a "neutral" rating. UBS cut its target to $35 from $39.

Goldman Sachs removed Dollar Tree from its "conviction buy" list but raised its price target to $65 (U.S.) from $61.

Raymond James downgraded Trican Well Service to "market perform" from "outperform" and cut its price target to $16.50 from $18.

Macquarie upgraded Nordstrom to "outperform" from "neutral" and raised its price target to $66 (U.S.) from $60.

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For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities

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