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Dundee hikes price target on Boardwalk REIT

Traders work on the floor of the New York Stock Exchange, May 14, 2012.


Boardwalk REIT

Investors should continue to view Boardwalk Real Estate Income Trust as a "core holding" for safety in the near term despite its robust gains this year, says Dundee Capital Markets analyst Brad Cutsey.

The REIT, which owns a portfolio of apartment properties, has already returned more than 20 per cent, and widely outperformed its peers, Mr. Cutsey said. "However, we do believe that profit-taking may be reasonable if the units show any significant appreciation in price."

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The strong rental market in Alberta plus falling utility costs helped Boardwalk post "impressive" first-quarter results that beat our estimates, the analyst wrote in a report.

Boardwalk's funds from operations – a financial measure widely used by real estate companies –rose to 66 cents a unit in the quarter, up from 54 cents a year earlier.

Upside: He maintains a "neutral" rating, but raised his one-year target to $62 a share from $56.


Semafo Inc.

TD Securities analyst Steven Green suggests that the recent sell-off in Semafo shares is "overdone." The headwinds faced by the West African gold miner due to rising costs and a declining grade-profile are already reflected in the stock, he said.

Upside: Mr. Green upgraded Semafo to a "buy," but cut his one-year target to $6 a share from $9.

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CAE Inc.

The firm's $470-million spending spree to acquire Oxford Aviation Academy and Medical Education Technologies Inc. could turn out to be rewarding for shareholders, but they will not sufficiently add to earnings in the intermediate term, said BMO Capital Markets analyst Fadi Chamoun.

Downside: He maintains an "outperform" rating, but cut his one-year target to $13 a share from $14.


Enbridge Inc.

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The energy transporter's pipeline projects to move western Canadian crude to refiners in eastern Canada will add roughly 10 cents in annual earnings per share once they are fully in service in 2015, said CIBC World Markets analyst Alex Kodatsky.

Upside: He rates Enbridge a "sector outperform," but raised his one-year target to $46 a share from $44.


Allied Properties REIT

The office property REIT has announced more than $150-million in acquisitions this year, and reached the half-way mark for its 2012 target, said TD Securities analyst Jonathan Kelcher. The REIT could increase its distribution this year or early 2013, he added.

Upside: He maintains a "buy" rating, but raised his one-year target to $30 a share from $29.

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