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eye on equities

A woman enters the offices of MacDonald, Dettwiler and Associates in Richmond, B.C., Tuesday, January 8, 2008Richard Lam/The Canadian Press

MacDonald Dettwiler's acquisition of communications satellite maker SSL is "massively accretive," according to National Bank Financial. The deal will boost 2013 earnings per share by 70 per cent and "the stock does not appear to be reflecting anywhere near the full value of this transaction."

Upside: The firm is boosting its target price to $70 from $55, based on a view that it will trade at 11 times next year's estimated earnings.


Stantec Inc. is buying Cimarron Engineering, an oil patch consulting firm based in Calgary. Desjardins says the deal will have a positive impact on Stantec by expanding its capabilities in energy infrastructure and by allowing it to tackle larger scale projects.

Upside: Desjardins rates the company as a hold, with a $35 target price.


Shaw Communications reported fiscal third quarter results largely in line with expectations, but suffered cable customer losses due to competition and reduced promotions, according to Desjardins analyst Maher Yaghi, who says "we prefer to stay on the sidelines until better subscriber trends emerge."

Downside: Desjardins has a $21.50 target, but says any downside should be limited by the 5 per cent dividend yield.


Evertz Technologies has the highest projected returns, at 51 per cent over the next year, of small capitalization stocks deemed likely to succeed by analysts at RBC Dominion Securities. The valuation of the developer of broadcast industry hardware and software is "compelling"; it has a strong balance sheet and a solid 4 per cent dividend.

Upside: RBC rates the stock " outperform" and has a $19 target price.


Pantheon is a contract manufacturer of prescription and over-the-counter drugs. RBC Dominion Securities says the company is increasing revenue guidance and should report favourable second half results. The CEO and other managers have been buying stock between $1.40 and $1.90.

Upside: The shares are rated "outperform" and could reach $3.50. according to RBC.