This March 20, 2012 file photo shows Netfilx headquarters in Los Gatos, Calif.Paul Sakuma/The Associated Press
Inside the Market's roundup of some of today's key analyst actions. This file will be updated often during the trading day so check back for new details.
Netflix Inc. is going to face an intensifying competitive environment and requires an increased investment with an uncertain return, Evercore ISI Research analyst Ken Sena says. The analyst is downgrading Netflix to "sell" from "hold."
Competitors are beginning to create a better viewing experience and expand their content libraries by acquiring more movie and television rights, Mr. Sena says. And even content providers themselves are becoming "more proficient" at creating their own solutions to reach viewers in-home.
Netflix is looking to roll out an international expansion over the next two years. Though the analyst thinks competitors in other markets have moved fast than those in the U.S. and different viewing characteristics could limit Netflix's penetration.
Mr. Sena cut his target price to $380 (U.S.) from $450. Consensus is $445.51.
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B2Gold Corp. missed consensus estimates, registering a 1 cent per share loss. While CIBC World Markets Inc. analyst Jeff Killeen predicted the company would break even, meaning earnings were virtually in-line, the analyst said developments at Masbate Mine, Philippines are weighing on B2 . Mr. Killeen is maintaining his "sector outperform" rating, but dropping his target price.
With the decision to not proceed with an expansion, yearly depreciation and write-downs, the value of Masbate mine fell nearly 52 per cent year over year. Mr. Killeen thinks B2's balance sheet remain strong with $133 million in cash, but there is some concern financing could become an issue as the company begins more projects.
Mr. Killeen notched down his target price to $3.50 from $4. Canaccord Genuity analyst Rahul Paul did the same, while Cormark Securities upgraded the stock to "market perform" from "buy" with a 12-month target price is $2.75 (Canadian) per share. Consensus is $2.67, according to Thomson Reuters.
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Credit Suisse analyst Christian Buss expects Nike Inc. to carry solid earnings per share growth into 2016.The analyst is reiterating his "outperform" rating, but with most currencies weakened against the U.S. dollar, is lowering his estimates and his target price.
Mr. Buss thinks Nike will continue to be strong in the U.S. market, particularly in footwear, where he expects to see 9- to 10-per-cent growth. The analyst also thinks the outlook in China is "healthy," with the apparel market growing at a robust rate. Nike and its partners are snapping up improving sale store sales in China as well.
Exchange rates dampen the news for the apparel giant, however. Western Europe accounts for nearly 20 per cent of Nike's sales, and the euro has declined nearly 13 per cent in the past three months. With most meaningful currencies down against the dollar, the analyst thinks foreign exchange will weigh down Nike's topline by 4 to 4.5 per cent moving forward.
Mr. Buss lowered his target price to $99 (U.S.) from $102. Consensus is $102.84, according to Thomson Reuters.
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With better performance at the Aux Sable natural gas liquids plant near Chicago, Veresen Inc.'s fourth-quarter results came in ahead of expectations. Distributable cash flow of $69-million beat First Energy Capital analyst Steven Paget's estimate of $49-million and prompted the analyst to raise his rating on the stock to "outperform" from "market perform."
Veresen is also moving forward today with a decision on investing in the Jordan Cove export project.
"Management is confident about signing definitive off-take agreements, saying that the current downturn in commodity prices has not impacted negotiations," the analyst said.
With Veresen's stock price down 12 per cent from its January high, First Energy views the return on investment as appealing.
Mr. Paget maintained his target price of $16.50 on the issue. Consensus is $18.45, according to Thomson Reuters.
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Despite languishing commodity prices, Canadian Energy Services & Technology Corp. beat revenue forecasts and met earnings per share estimates. AltaCorp Capital analyst Jason Sawatzky is maintaining his "outperform" rating as a result, and increasing his target price.
Though Canadian revenue fell short of forecasts, Canadian Energy Services handily beat estimates on its U.S. business, with revenue up 47 per cent year over year.
The analyst does expect the company's drilling fluids business to be "meaningfully impacted" in 2015, however, as low commodity prices and the reduction in Canadian and American drilling take their toll.
Mr. Sawatzky raised his target price to $9 from $8. Consensus is $8.63, according to Thomson Reuters.
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In other analyst actions:
Goldcorp Inc. was upgraded to "overweight" from "neutral" at Raymond James. The company also was raised to "overweight" from "neutral" at HSBC. The target price is $25.30 (U.S.) per share.
Bird Construction Inc. was downgraded to "market perform" from "outperform" at Raymond James. The 12-month target price is $11 (Canadian) per share.
Big Rock Brewery Inc. was downgraded to "reduce" from "market perform" at Cormark Securities. The 12-month target price is $10 (Canadian) per share.
Fortuna Silver Mines Inc. was raised to "buy" from "market perform" at Cormark Securities. The 12-month target price is $6.50 (Canadian) per share.
Garmin Ltd. was downgraded to "market perform" from "outperform" at Oppenheimer.
JetBlue Airways Corp. was raised to "outperform" from "market perform" at Raymond James. The 12-month target price is $22 (U.S.) per share.
Latam Airlines Group SA was downgraded to "underperform" from "market perform" at Raymond James.
Stella-Jones Inc. was downgraded to "buy" from "action list buy" at TD Securities. The 12-month target price is $46 (Canadian) per share.
Seagate Technology PLC was raised to "strong buy" from "buy" at Needham & Co. The 12-month target price is $65 (U.S.) per share.
Temple Hotels Inc. was raised to "buy" from "hold" at Laurentian Bank. The 12-month target price is $3 (Canadian) per share.
Union Pacific Corp. was raised to "outperform" from "neutral" at Macquarie. The 12-month target price is $132 (U.S.) per share.
Veresen Inc. was raised to "outperform" from "market perform" at FirstEnergy Capita. The 12-month target price is $16.50 (Canadian) per share.
Endeavour Mining Corp. was rated new "buy" at Clarus Securities. The target price is $1.75 (Canadian) per share.
North West Co Inc. was raised to "buy" from "hold" at Industrial Alliance. The 12-month target price is $27.50 (Canadian) per share.
Perpetual Energy Inc. was raised to "outperform" from "sector perform" at National Bank. The 12-month target price is $1.50 (Canadian) per share.
Spectra7 Microsystems Inc. was rated new "strong buy" at Global Maxfin. The 12-month target price is $1 (Canadian) per share.
Terra Firma Capital Corp. was rated new "buy" at Cormark Securities. The 12-month target price is $1.20 (Canadian) per share.
With files from Bloomberg News