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Trican Well Service Ltd. (TCW-TSX)
Raymond James analyst Andrew Bradford downgraded Trican Well Service Ltd. to "underperform" after the company warned of an unexpected second-quarter loss.

"We think there is a reasonable likelihood that Trican's stock could set new intra-cycle lows over the coming days and weeks," Mr. Bradford warned Wednesday in a note to clients.

The Calgary-based company, which provides equipment used for oil and gas drilling, said Tuesday, after the markets closed, that it was estimating a loss of between 32 and 42 cents a share. The second-quarter results are set to be released July 30.

Trican hasn't reported a second-quarter operating loss since 2009, Mr. Bradford said. In Canada, Horn River projects have on occasion buffered Trican's second-quarter results "where they might otherwise have been flat to severely negative," he noted.

"This year, however, its second-quarter Horn River program was delayed to the end of June due to weather. Trican would have incurred many of the costs for this program in the second quarter, which likely exacerbated the second-quarter operating loss. We are expecting a meaningful return to profitability in the second half of this year."

Downside: Mr. Bradford slashed his six-month to one-year target to $13 a share from $16.


Migao Corp. (MGO-TSX)
The Chinese specialty fertilizer company faces an uphill battle to regain investor confidence despite proposing an annual 6-cent a share dividend, said BMO Nesbitt Burns analyst Joel Jackson. Migao's fourth-quarter results missed consensus expectations due to lower margins, and disappointing sales of potassium sulphate.

Downside: Mr. Jackson, who maintains an "underperform" rating, cut his one-year target to $2.25 a share from $3.


Element Financial Corp. (EFN-TSX)
Element Financial's purchase of car leasing company TLSI Holdings Inc. provides the equipment financing firm with "a complimentary business vertical with ability to cross-sell current products," said GMP Securities analyst Stephen Boland. He expects further acquisitions as the company continues to expand.

Upside: The analyst, who maintains a "buy" rating, raised his one-year target to $7.50 a share from $6.75.


Peyto Exploration & Development Corp. (PEY-TSX)
The natural gas producer's proposed $175-million (U.S.) acquisition of Open Range Energy Corp. is positive because its assets are complimentary to Peyto's existing business, said TD Securities analyst Travis Wood. "We expect management to unlock more value based on the implied synergies and return-driven strategy."

Upside: The analyst, who maintains a "buy" rating, raised his one-year target to $23 a share from $21.


Cequence Energy Ltd. (CQE-TSX)
Cequence will receive a $4.6-million break fee from Open Range Energy Corp., which has opted for a better takeover offer from Peyto Exploration & Development Corp. Cequence's recent equity financings were not contingent on the acquisition of Open Range so it is "left in a stronger financial position than before," said CIBC World Markets analyst Arthur Grayfer.

Upside: The analyst, who has a "sector perform" rating on the junior oil and gas company, raised his one-year target to $1.55 a share from $1.45.