Mr. Munk is perhaps best known for Barrick Gold Corp., a mining firm he founded in 1983. What started with a small stake in a Northern Ontario mine has evolved into the world’s largest gold producer.The Globe and Mail
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day. For breaking analyst actions prior to market open every day, read our Before the Bell morning report.
RBC Dominion Securities analyst Stephen D. Walker raised his price target on Barrick Gold Corp., believing shares will soon return to the valuation range prior to the troubles at the company's Pascua-Lama project and with its weakened balance sheet.
"Barrick has improved the overall quality of its mining assets and balance sheet, and as such we have increased our target multiples from 0.9x net asset value and 9.0x 2014 estimated cash flow per share back to 1.2x NAV and 12x 2014 estimated cash flow per share, the trading range prior to the 2012–13 capital escalation and balance sheet problems," Mr. Walker said in a research note.
He did note, however, that there is potential for further writedowns at several mines and the company's plans disclosed Thursday to use a $1,100 an ounce gold price to book year-end reserves - down from $1,500 at the end of 2012 - will lead to an estimated 12 per cent to 18 per cent drop in reserves.
He maintained a "sector perform" rating.
Also today, CIBC World Markets said it added Barrick Gold to its quantitative buy list this week, reflecting "a strong improvement in price momentum vis-a-vis peers, favourable valuation, and favourable exposure to a 'low-quality' rally."
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The changing nature and growth of Avigilon Corp.'s sales force and the introduction of a partner loyalty program will mean the company's 2014 sales will materially beat consensus forecasts, said CIBC World Markets analyst Robin Manson-Hing, who raised the company's price target to $50 (Canadian) from $32 while affirming a "sector outperformer" rating.
Avigilon is a Canada-based company engaged in design, manufacturing and marketing of high-definition and megapixel network-based video surveillance systems and equipment for the global security market.
"We estimate the Avigilon U.S. sales force can double without saturation. Our 2014 sales estimate rises to $316-million (was $300-million) and our EPS estimate drops to $0.97 on unexpected hiring and the VideoIQ purchase. AVO is on pace for 2014 sales growth of 75 per cent and we estimate 65 per cent earnings growth in 2015," the analyst said.
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Open Text Corp. went beyond most investors' expectations this week in delivering a healthy quarter and calling for faster-than-expected synergies on its recent GXS acquisition, said RBC Dominion Securities analyst Paul Treiber.
He raised his price target to $120 (U.S.) from $110 and maintained an "outperform" rating.
"Open Text is trading at 11.5x EV/EBITDA; the rise towards the high-end of Open Text's historical range (7-12x) may reflect investors growing more comfortable with management's ability to balance accretive acquisitions, margin expansion and organic growth. Acquisitions remain a core aspect of Open Text's growth strategy; we estimate acquisitions may double the size of the company in 5 years. We see the shares continuing to rally in 2014 on potentially greater than expected GXS synergies and accretion, sustained positive organic growth, strong cash flow and de-leveraging," Mr. Treiber said in a research note.
Also on the Street, CIBC World Markets raised its target to $110 (U.S.) from $95 and maintained a "sector outperformer" rating.
Open Text is one of the top gainers on the TSX today, up 13 per cent at mid-morning.
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In other analyst actions:
Industrial Alliance Securities upgraded Orbit Garant Drilling to "buy" from "hold" and raised its price target to $1.75 (Canadian) from $1.30.
CIBC World Markets raised its price target on Semafo to $4.25 (Canadian) from $3 and maintained a "sector outperformer" rating.
Jefferies upgraded Jacobs Engineering to "buy" from "hold" and raised its price target to $76 (U.S.) from $64.
Goldman Sachs upgraded Juniper Networks to "neutral" from "sell" and raised its price target to $25 (U.S.) from $17.
Compass Point upgraded E*Trade to "buy" from "neutral" and raised its price target to $25 (U.S.) from $16.
Atlantic Equities downgraded Citigroup to "neutral" from "overweight" and cut its price target to $55 (U.S.) from $59.
For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities
Darcy Keith