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Finning International’s turnaround impresses analysts

Finning sells and services Caterpillar equipment

Seth Perlman/AP

Ben Cherniavsky of Raymond James believes the turnaround at Finning International Inc. is progressing well. He also believes risk management has improved at the world's largest Caterpillar dealer. That's an important consideration given the turbulent global economy.

Upside: Mr. Cherniavsky maintains his "outperform" rating with a $33.50 a share target.

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Yamana Gold Inc. has agreed to buy Extorre Gold Mines Ltd. for $414-million. Brian Christie, an analyst with Desjardins Capital Markets, approves of the deal, which gives Yamana access to Extorre's Cerro Moro project in Argentina. He says it "represents a small but potentially high-value transaction for Yamana in a familiar jurisdiction."

Upside: Mr. Christie maintains his "buy" rating on Yamana with a $22 (U.S.) target share price.

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David Tyerman, an analyst at Canaccord Genuity, likes the recent decision by WestJet Airlines Ltd. to buy up to 45 Q400 aircraft. He expects the initiative will allow the airline to service lower demand markets and provide increased frequency. While short-term impact will be limited, he likes WestJet's strong balance sheet, potential for earnings growth and improving returns on invested capital.

Upside: Mr. Tyerman maintains his "buy" rating with a $24 a share target.

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Rafi Khouri of Raymond James has studied recent transactions in the energy industry to figure out what the assets of Talisman Energy Inc. would be worth if the oil and gas producer decided to sell some of its holdings, particularly in the North Sea. His results buttress his positive view of the company.

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Upside: Mr. Khouri rates Talisman as "outperform" and has raised his price target from $13 to $13.50 a share.

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Walter Spracklin of RBC Dominion Securities doubts that Bombardier Inc. management would have scheduled a briefing for Tuesday, less than a month before the key Farnborough air show, if there was any bad news to relate about the company's new CSeries planes. He is expecting the tone of the briefing to be optimistic.

Upside: Mr. Spracklin continues to rate the shares "outperform" with a target of $5 a share.

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About the Author

Ian McGugan is a reporter with The Globe and Mail's Report on Business and has been writing about investing, economics and business for more than 20 years. He joined the Globe and Mail in 2010. He has been executive editor of Canadian Business magazine and founding editor of MoneySense magazine. More

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