The Thomson Reuters building at Canary Wharf, LondonTOBY MELVILLE/Reuters
For the second time in less than a week, RBC Dominion Securities downgraded Thomson Reuters Corp.'s price target. Analyst Drew McReynolds also removed his "outperform" rating and said Thomson Reuters' markets division may not deliver 5 per cent revenue growth next year.
"We now view the stock as largely rangebound, pending better visibility on the growth outlook for Markets," he wrote in a research report. The company is likely to provide guidance with its fourth-quarter results in February 2012. "In the meantime, we expect sluggish 1 per cent to 2 per cent growth from Markets to be a headwind for the stock."
Downside: Mr. McReynolds downgraded its rating to "sector perform" and dropped its price target to $42 (U.S.). He cut the target from $48 to $46 on Friday. The stock is down 12 per cent since the end of April, and he suggests investors wait for a "more timely" entry point.
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Production at Peyto Exploration & Development Corp. exceeded expectations, CIBC analyst Jeremy Kaliel said. He boosted its rating to "sector outperformer" and raised his production forecast by five per cent for this year and by 12 per cent for 2012.
Upside: Mr. Kaliel also upgraded his price target by $6.50 to $30.
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Chugging along despite mudslides, floods, and forest fires, CN Rail increased its revenues and delivered strong second-quarter results, said Raymond James analyst Steve Hansen. He raised the railway's price target, citing CN's ability to deliver amid natural disasters, rising fuel costs, and a strong Canadian dollar.
Upside: Mr. Hansen boosted CN's price target by $1 to $81. Analysts at TD Newcrest also boosted their price target to $88 from $86.
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TD Newcrest analyst Daniel Earle upgraded Silver Wheaton's rating to "buy," pointing out that speculators will continue to throw more money at precious metals. Silver Wheaton stands out from its peers because of its leverage to silver and production growth, he said.
Upside: Mr. Earle boosted the stock's price target by $2 to $46 and raised its rating from "hold" to "buy."
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Canaccord Genuity analyst Orest Wowkodaw cut his price target for Inmet Mining Corporation due to disappointing second-quarter results, combined with lower copper and zinc production expectations. The company is still attractive based on its strong balance sheet and low political risk, Mr. Wowkodaw said.
Downside: Mr. Wowkodaw decreased his price target by $3 to $87. He maintained his "buy" rating.