GENERAL ELECTRIC (GE-NYSE)
$10.90 U.S., up 41¢
General Electric Co. GE-N has about $125-billion (U.S.) exposed to the equipment finance business at a time when the collateral represented by construction equipment, trucks, railcars and business jets is declining in value, which could result in above average losses in the next few years, said UBS Securities analyst Jason Feldman.
Downside: GE is rated "neutral" with a price target of $9.50.
INTERNATIONAL FOREST PRODUCTS LTD. (IFP.A-TSX)
$1.96, up 14¢
International Forest Products Ltd. IFP.A-T shares have lagged behind Canfor Corp. and West Fraser Timber Co. since last summer, said Scotia Capital analyst Benoît Laprade. "It has an attractive portfolio of cross-border assets, significantly less exposure to the Mountain Pine Beetle infestation and it has earned stronger [operating profit]margins for the past three years."
Upside: The rating was increased to "outperform" from "sector perform" with a price target of $3.25.
$41.09 U.S., up $2.01
Investors betting on rising inflation and rising infrastructure spending are returning to the steel markets and while the trading environment has improved risks remain to the downside, said David Martin, an analyst with Deutsche Bank.
Upside: He has "buy" ratings on NYSE-listed Nucor Corp. NUE-N and Brazil's Companhia Siderurgica Nacional and hold ratings on Luxembourg's ArcelorMittal and Brazil's Gerdau SA because of their weaker balance sheets.
EXFO ELECTRICAL-OPTICAL ENGINEERING (EXFO-Nasdaq)
$3.49 U.S., down 7¢
Exfo Electro-Optical Engineering Inc. EXFO-Q manufactures test equipment for the fibre optic communications market and as one of two leading companies in the business it could win major orders from global telecommunication companies developing their 3-G wireless networks, said Chris Umiastowski, an analyst with TD Securities.
Upside: The shares of the Quebec-based company are reiterated "buy" with a price target of $5 (U.S.).
RESEARCH IN MOTION (RIMM-Nasdaq)
$45.04 U.S., up $2.12
Research In Motion Ltd. RIMM-Q "is not a fresh money buy in our view despite 56 per cent buy ratings," said Citigroup Global Markets analyst Jim Suva. "RIMM has to prove gross margins trough and show earnings per share leverage."
Downside: The shares are rated "hold" with a price target of $46 (U.S.) by Citigroup. National Bank reiterates "outperform" with a $60 target saying "the bad [is]priced in."