Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Pan American Silver Corp. didn't provide much for investors to cheer about in releasing its latest quarter earnings - and analysts today have reacted. Both Canaccord Genuity and Raymond James Ltd. downgraded the silver producer.

Third-quarter fully diluted adjusted earnings per share of 48 cents was well short of the consensus number of 78 cents. Canaccord's Steven Butler chalked it up to production that was substantially weaker than expected in Peru, as well as higher costs. The company's 2011 silver production guidance was also revised downward, to 22.5 million ounces from a range of 23 million to 24 million ounces.

Mr. Butler downgraded Pan American to "hold" from "buy" and slashed his price target to $31.50 (U.S.) from $37.

Story continues below advertisement

Brad Humphrey at Raymond James is more bullish on the stock, but still reduced his price target by $7 to $43. His rating was lowered to "outperform" from "strong buy."

Mr. Humphrey said there are heightened concerns about political uncertainty in South America, where most of Pan American's assets reside. However, he added that "We continue to recommend investors buy shares of Pan American Silver because of its strong balance sheet, diversified asset portfolio ... and the upside potential at its 'world class' Navidad project."

Navidad, in Argentina, is considered by some as one of the most promising silver properties in the world.

Mr. Humphrey noted the project has the potential to double company output by 2016, if mining restrictions are modified in Argentina's Chubut province.

______

Raymond James Ltd.'s Frederic Bastien downgraded The Churchill Corp. to "market perform" from "outperform" after more disappointing quarterly results. Third-quarter profit per share of 25 cents missed the consensus forecast of 39 cents, mostly because of poor performance from its Stuart Olson Dominion construction management unit. Mr. Bastien expects margins at Stuart Olson will take some time to recover.

Downside: Br. Bastien cut his price target by $6 to $15.

Story continues below advertisement

______

Raymond James Ltd. analyst Brad Humphrey believes investors should buy shares of Silvercorp Metals Inc. now that it can turn its attention back to operations. A KPMG Forensics audit last month vindicated the firm's claims that it has not overstated revenues, as alleged in two sets of reports that surfaced last month. "With the anonymous accounting allegations behind it, Silvercorp's management team can turn its focus back to its high grade Ying mine, strong margins, low cost structure and flexible production portfolio," he wrote.

Upside: Mr. Humphrey reaffirmed his "outperform" rating, but trimmed his price target by $1.25 to $14.75 because of "some minor" changes to his model.

Related: Silvercorp profit rises, despite cost of fighting short-sellers

Related: Independent audit vindicates Silvercorp

______

Story continues below advertisement

Recent changes to generic drug legislation will continue to impact prescription sales at Shoppers Drug Mart Corp. , but this should be mitigated by healthy volume growth, said Canaccord Genuity analyst Candice Williams. The retailer, which reported third-quarter earnings per share of 79 cents - a penny shy of consensus - could see a boost in its stock price when there's a final decision from the Court of Appeal for Ontario in coming months related to Shoppers' application to manufacture private label generic drugs, she said.

Upside: Ms. Williams raised her price target by $2 to $42 and maintained a "hold" rating.

Related: Shoppers results still hit by drug rules

______

PetroBakken Energy Ltd.'s third-quarter results were below Street expectations, but the company increased its guidance for the production rate it will exit 2011 with. Raymond James Ltd.'s Justin Bouchard noted the company continued to accumulate debt during the quarter and believes it may have to hike its current bank line in order to fund next year's capital expenditure program.

Upside: Mr. Bouchard raised his price target by $1 to $8.50 and reaffirmed his "market perform" rating.

Story continues below advertisement

Related: PetroBakken considering asset sales

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies