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Inside the Market’s roundup of some of today’s key analyst actions

Scotia Capital analyst Paul Steep thinks the selloff prompted by the second-quarter earnings release for Lightspeed Commerce Inc. (LSPD-N, LSPD-T) was “overdone.”

Accordingly, a day after its shares plummeted 27.6 per cent in Toronto, he raised his rating for its shares to “sector outperform” from “sector perform.”

Before the bell on Thursday, the Montreal-based point-of-sale and e-commerce software provider reported better-than-expected second-quarter results, featuring strong sales growth. However, its near-term revenue forecast disappointed investors as supply chain disruptions, COVID-19-related disruptions in Asia and normal seasonality are expected to weigh.

“Concerns centered on lower-than-expected organic location growth (up 3,000 locations quarter-over-quarter) given ongoing lockdowns and the impact retail customers could face from supply chain issues on holiday sales,” said Mr. Steep.

“We believe that there is a near-term opportunity in Lightspeed’s shares given that the firm is forecast to continue to deliver year-over-year growth. Our scenario analysis indicates that reward to risk appears favourable given [Thursday’s] sell-off. We would expect that the firm’s shares are likely to remain highly volatile on a quarterly basis given: the ongoing impact of COVID-19 (shutdowns and supply chain disruptions), and uncertainty driven by a recent short report. Key risks for the stock are: the potential for on-lock-downs to slow location growth near-term, the impact of macro supply chain issues on LSPD’s retail clients, and uptake of LSPD payments in new region.”

Mr. Steep did trim his target for Lightspeed shares to US$103 from US$121. The average target on the Street is US$111.56, according to Refinitiv data.

“We are positive on Lightspeed’s long-term vision of positioning itself as a leading software as a service (SaaS) provider in the SMB-focused retail and restaurant market,” he said. “The firm’s transition toward becoming an integrated software and payments vendor could result in a multi-year period of accelerating revenue growth as it expands the availability of Lightspeed Payments into new regions and vertical markets. We expect the firm’s medium-term focus will remain on expanding its range of offerings to its existing customer base, with the potential for new software modules to drive higher customer ARPU and retention.”

Elsewhere, TD Securities analyst Daniel Chan also raised Lightspeed to “action list buy” from “buy” in response to Thursday’s dip.

“We were cautious of rising interest rates having an impact on high-multiple names like Lightspeed, but [Thursday’s] pullback has reduced this risk, in our view,” he said. “Moreover, the current multiple is nearly one standard deviation below its average historical multiple, since the company’s IPO in 2019. We believe that the pandemic has accelerated ecommerce market growth and argue that ecommerce solutions vendors should trade at a higher multiple than they did before the pandemic. Moreover, we believe that Lightspeed is set up for accelerating growth, given the broader global availability of Lightspeed Payments.”

With his target sliding to $130 from $150, Mr. Chan added: “Although we believe that the next couple of quarters can be volatile with an uncertain supply-chain environment and varying pandemic responses, we remain confident that Lightspeed will accelerate growth, as Payments adoption increases and markets normalize.”

Other analysts making changes include:

* CIBC’s Todd Coupland t to $125 from $190 with an “outperformer” rating.

* RBC’s Daniel Perlin to US$104 from US$114 with an “outperform” rating.

“Overall FQ2/22 came in ahead of our estimates and likely in line with buyside expectations, but FQ3 & FY22 guidance suggests a slower near-term growth path, as COVID-related lockdowns (heavily influenced by APAC) and supply chain concerns resulted in tempered guidance and thus the stock’s weakness [Thursday], which we would take advantage of as the underlying fundamentals remain strong and believe the transitory issues will abate within the next 1-2 quarters,” said Mr. Perlin.

* Raymond James’ Steven Li to $110 from $140 with an “outperform” rating.

“LSPD shares got re-rated significantly lower following its F2Q22 print,” said Mr. Li. “The print itself was solid (beat, strong organic, ARPU up quarter-over-quarter). But guidance was not raised to reflect current market constraints (supply chain in retail). We believe the market quickly re-assessed LSPD future growth lower and its trading multiple, accordingly.”

* BMO’s Thanos Moschopoulos to US$96 from US$110 with an “outperform” rating.

“We’ve reduced our target price in recognition of the fact that it will likely take some time for the stock’s multiple to fully recover, given the recent volatility and noise regarding the (in our view baseless) short allegations,” he said.

* Credit Suisse’s Timothy Chiodo to US$105 from US$115 with an “outperform” rating.

* Piper Sandler’s Clarke Jeffries to US$128 from US$145 with an “overweight” rating.

* JP Morgan’s Tien-Tsin Huang to $100 from $122 with a “neutral” rating.

* Barclays’ Raimo Lenschow to US$123 from US$137 with an “overweight” rating.


Calling its third-quarter report “excellent,” BMO Nesbitt Burns analyst Peter Sklar raised his rating for Maple Leaf Foods Inc. (MFI-T) to “outperform” from “market perform,” even though its Plant Protein segment fell short of expectations.

Before the bell on Thursday, the Mississauga-based company reported adjusted earnings per share of 36 cents, topping both Mr. Sklar’s 26-cent estimate and the 29-cent consensus projection. The beat was drive by higher-than-anticipated sales growth in its Meat Protein group.

Conversely, its Plant Protein sales dropped 6.6 per cent year-over-year, leading management to begin a review of the group.

“We believe a likely outcome of the review is a scaling back in capital and marketing spend, which should improve FY2022 results,” said Mr. Sklar.

His target rose to $36 from $27. The average target on the Street is $39.

Others making changes include:

* CIBC’s Mark Petrie to $44 from $38, maintaining an “outperfomer” rating.

“Maple Leaf reported excellent Q3 results with 13-per-cent revenue growth in Meat Protein, driving a solid earnings beat,” said Mr. Petrie. “Management’s review of the Plantbased business is a welcome step, though the outcome is unclear. We believe the most likely path is a focus on ‘Core’ products and reducing the cash flow drain from ‘Fresh.’ We continue to find valuation compelling.”

* Scotia’s George Doumet to $42 from $36 with a “sector outperform” rating.

“Once again the company’s meat segment generated impressive results and drove the beat vis-à-vis Street expectations,” said Mr. Doumet. “The plant segment continues to fall short of expectations, as revenue growth failed to materialize (even at all, let alone 30-per-cent-plus previously expected). As a result of this, MFI is assessing (i) the potential reasons behind this and (ii) and more importantly the potential responses to it. We believe (and are hoping) that the outcome could be a (sizable) reduction in opex levels, leading to a potential return to profitability over our forecast horizon (and maybe as early as 2H/23).

“In this environment characterized by input cost inflation, pressured supply chains and labor constraints, MFI remains one of our preferred go to names. The company has, to date, seen very modest disruptions to operations and continues to gain from its vertical integration (and natural hedges). Furthermore, MFI remains our top value idea - with the shares (still) ascribing no value to a likely more profitable plant business.”

* RBC’s Irene Nattel to $44 from $38 with an “outperform” rating.


Though the quarterly results for BCE Inc. (BCE-T) largely met his expectations, TD Securities analyst Vince Valentini lowered his rating for its shares to “hold” from “buy” on Friday.

On Thursday, BCE shares saw modest gains following the premarket release of third-quarter results that saw revenue fall slightly below the Street’s expectations, due to fewer mobile device transactions and lower business wireline data equipment sales.

“We have no concerns with the recent results or the fundamental outlook for BCE, and despite elevated capex (and thus, an elevated dividend payout ratio) in 2021 and 2022, we fully expect 5-per-cent dividend growth to continue,” said Mr. Valentini. “This growing income stream might be sufficient for some investors to keep buying the stock, but the total return to our target price no longer satisfies our hurdle rate, so we are downgrading to HOLD.

“Central bank tightening and rising bond yields are not good backdrops for BCE shares, in our view, so with the stock up 18 per cent year-to-datw, we prefer a more cautious approach.”

His target for BCE shares dipped to $67 from $70. The average is $65.13

Elsewhere, Desjardins Securities analyst Jerome Dubreuil expects BCE to “remain a core holding for many funds.”

However, the analyst thinks it is “too early to put an overweight tag on the stock,” saying a weaker-than-normal free cash flow outlook and lack of near-term catalysts keeps him “on the sidelines at this point.”

Mr. Dubreuil increased his target for BCE shares to $66 from $64, keeping a “hold” rating. .

CIBC’s Robert Bek moved his target to $65 from $64 with a “neutral” rating.

“Consistent execution is the hallmark of the name, and that was on display again in Q3/21,” said Mr. Bek. “We are currently at Neutral on BCE, solely as a valuation call on the space. The company continues to drive consistent results, and the shares represent strong defensive qualities, and an outstanding yield of 5.4 per cent.”


Citi analyst Paul Lejuez said he’s coming away from Gildan Activewear Inc.’s (GIL-N, GIL-T) third-quarter earnings release “even more positive” about both its momentum and competitive positioning.

Shares of the Montreal-based clothing manufacturer jumped 6.8 per cent in Toronto on Thursday after it reported quarterly sales of US$802-million, exceeding the Street’s forecast US$720-million. Adjusted earnings per share of 80 US cents also blew past expectations (52 US cents).

“From a demand perspective, [point of sales] were up versus fiscal 2019 in North America,” he said. “Management indicated they do not have the same inflationary pressures as many of its competitors, which will likely allow their already-favorable price gaps to widen further in 2022 (even after GIL increases prices by 2-3 per cent), as others have more inflationary pressures to pass through. And GIL’s main supply chain bottleneck (procuring yarn) is starting to loosen while many of its competitor’s bottlenecks are tightening (or at least not getting better).”

Mr. Lejuez thinks Gildan remains on track to create incremental $500-million in capacity by the end of the year, which help them make further market shares gains. He raised his fiscal 2021 and 2022 earnings per share projections to US$2.52 and US$3, respectively, from US$2.30 and US$2.85 to also reflect higher sales assumptions and an improving margin outlook.

Seeing its shares as “a stock to own over the long-term,” he raised his target to US$50 from US$44. The average is US$44.92.

“GIL is a leader in the ‘imprintable’ activewear market and has developed a solid innerwear (underwear and hosiery) business,” said Mr. Lejuez. “GIL is a clear leader as the low-cost producer, which enables the company to pivot and win private label business as mass merchants move away from branded products. The company has made several strategic decisions that position them well over the next several years (even beyond F22) to further take market share in the markets they play in. We believe this potential is not yet fully reflected in consensus numbers.”

Elsewhere, though he thinks Gildan’s “attractive” mid- to long-term growth outlook is “gaining visibility, TD Securities analyst Brian Morrison lowered Gildan to “buy” from “action list buy” with a US$50 target, up from US$48.

“Our investment thesis is unchanged, that there remains a long runway for future earnings/FCF growth for Gildan,” he said. “Despite removing from the Action List this morning due to price appreciation narrowing our forecast return, we continue to recommend an overweight position. Gildan’s industry-leading cost structure, vertically integrated operations, and forthcoming capacity position it well to gain market share in its targeted verticals. We anticipate attractive near-term earnings growth that should lead to heightened investor conviction in its long-term earnings potential and lead to a higher share price.”

Stifel analyst Jim Duffy cut the stock to “hold” from “buy” with a US$43 target, up from US$41.

Others making target changes include:

* CIBC’s Mark Petrie to US$47 from US$43 with an “outperformer” rating.

“Gildan delivered blowout Q3 results, benefitting from strong demand, tight supply and cost discipline,” he said. “We believe end-market demand will remain strong into F2022 and Gildan is well positioned to benefit as capacity ramps up. Operating margins have exceeded the 18-per-cent aspiration for three consecutive quarters, but even a result closer to the target implies attractive upside as revenues build and cash flow remains robust.”

* RBC Dominion Securities’ Sabahat Khan to US$45 from US$43 with an “outperform” rating.

“Gildan reported strong Q3 results which reflected higher-than-expected contribution from both the Activewear and the Innerwear segments,” he said. “The strength in Activewear was driven by higher unit sales reflecting strong POS in the North American imprintables channel (above 2019 levels), partially offset by softer trends in International markets (where POS is trending below 2019 levels). Meanwhile, the Innerwear segment reflected strength in underwear sales volume, which more than doubled over Q3 2019 levels, partly offset by lower sales of socks (sales in this segment were ahead of forecasts and flat year-over-year). Looking ahead, we expect the recovery in the imprintables channel to continue as more markets ‘re-open’ and restrictions on gatherings are eased further. Overall, we are encouraged by the strong Q3 print and the commentary regarding supply/demand trends heading into Q4, and have revised our forecasts higher to reflect this outlook.”

* Desjardins Securities’ Chris Li to $59 from $52 with a “buy” rating.

“GIL’s strong results and management’s outlook increased our confidence that its 18-per-cent EBIT margin target is achievable despite supply chain tightness and inflationary pressures,” he said. “While pricing is an important lever to offset cost pressures, GIL’s vertically integrated manufacturing and Back to Basics benefits position it well to manage through inflationary pressures, achieve its margin target and gain market share.”

* BMO’s Stephen MacLeod to $50 from $43 with an “outperform” rating.

“We continue to believe Gildan is well-positioned to maintain its pricing leadership position and aggressively pursue market share gains as demand continues to recover into 2022,” said Mr. MacLeod.

“We also see margin upside from ‘Back to Basics’ and improved capacity utilization, as Gildan drives volume growth while maintaining or exceeding its 18-per-cent operating margin target.”

* National Bank Financial’s Vishal Shreedhar to $58 from $57 with an “outperform” rating.


In other analyst actions:

* Citing share price appreciation, TD Securities analyst Tim James downgraded GFL Environmental Inc. (GFL-N, GFL-T) to “hold” from “buy” with a $56 target, up from $54. The average is US$41.23.

“We continue to believe that the company is firing on all cylinders, including executing on its margin-improvement strategy, driving organic growth, capitalizing on M&A opportunities, and positioning the business for future deleveraging. We continue to believe that GFL is a good investment opportunity for long-term investors that appreciate FCF and deleveraging, and want to limit risk related to economic cycles,” he said.

Others making changes include: CIBC World Markets analyst Kevin Chiang to $58 from $53 with an “outperformer” rating and RBC’s Derek Spronk to US$47 from US$44 with an “outperform” rating.

* Seeing an ongoing recovery in demand, Citi analyst Stephen Trent raised his target for shares of Air Canada (AC-T) to $26 from $25, keeping a “neutral” recommendation. The average on the Street is $29.62.

Air Canada’s 3Q revenue strength surprised the market, as demand responded positively to authorities reopening routes and easing some travel restrictions,” he said. “Management’s sound measures around optimizing unit revenue and controlling costs should continue to pay off. However, against this positive backdrop, crude oil prices remain elevated and some parts of Europe are now seeing rising infection rates, as colder weather shifts social gatherings indoors. As such, while this very well run carrier appears to be comfortably past the operational bottom, risk-reward looks a little better elsewhere in the space.”

* RBC Dominion Securities analyst Paul Quinn cut his Resolute Forest Products Inc. (RFP-N, RFP-T) target to US$16 from US$18, keeping an “outperform” rating. The average is US$16.50.

“For the first time in a while, Resolute is in a strong financial position to improve its asset base and return capital to shareholders,” said Mr. Quinn. “We expect that the company will harvest its Paper business for cash and de-emphasize the tissue business, putting focus on its stronger Wood Products and Pulp business units. While still a business in transition, we think Resolute will utilize capital in a shareholder friendly manner.”

* Mr. Quinn lowered his Western Forest Products Inc. (WEF-T) target to $2.75 from $3, topping the consensus by 3 cents, with an “outperform” recommendation.

“Western Forest Products Inc. reported Q321 results that were above our forecast and consensus expectations, largely driven by higher-than-expected realized lumber pricing,” he said. “With Western’s shares falling 10 per cent (or $90-million of equity value) since the BC Provincial Government announced its plan to defer harvest of 2.6 million hectares of BC’s most at-risk old-growth forests, we think that the move is overdone given the company’s proactive engagement with First Nations on the BC Coast over the previous decade.”

* RBC’s Darko Mihelic raised his Sun Life Financial Inc. (SLF-T) target to $74 from $71 with a “sector perform” rating. Others making changes include: CIBC World Markets’ Paul Holden to $81 from $74 with an “outperformer” rating, BMO’s Tom MacKinnon to $79 from $76 with an “outperform” rating and Scotia’s Meny Grauman to $78 from $77 with a “sector outperform” rating. The average is $76.19.

“Sun Life’s Q3 result has some clear pluses and minuses, but we believe that investors should focus on the upgraded medium-term underlying ROE guidance of 16-per-cent or more versus 12-14 per cent previously,” said Mr. Grauman. “This move should not come as a total surprise given the fact that Sun’s underlying ROE has been tracking above the upper end of the old guidance range for the better part of three years. However, it is still a clear vote of confidence in the earnings power of the company since the firm has not yet consistently hit that mark. Key drivers to get there include the DentaQuest acquisition which is expected to boost ROE by 50 bps by 2024, and the continued growth at the firm’s other capital light businesses including SLC. Turning to the results themselves an impressive asset management performance is worth highlighting, but we also flag COVID-related weakness in both Asia and the US where underlying results came in below our expectations. We expect those impacts to be temporary, but as we heard on the call the recovery in both markets should be gradual.”

* Mr. Mihelic also bumped up his Great-West Lifeco Inc. (GWO-T) target to $41 from $39 with a “sector perform” rating. The average is $40.80.

“Q3/21 results even after excluding some one-time help were strong with the U.S. accounting for most of the surprise beat. We now assume stronger U.S. earnings growth which move our estimates and price target higher,” he said.

* TD Securities’ Menno Hulshof raised his Canadian Natural Resources Ltd. (CNQ-T) target to $61 from $58 with a “buy” rating, while JP Morgan’s Phil Gresh hiked his target to $62 from $54 with an “overweight” rating and BMO’s Randy Ollenberger increased his target to $65 from $59 with an “outperform” rating. Conversely, National Bank Financial’s Travis Wood cut his target to $69 from $70 with an “outperform” rating. The average is $60.39.

“Canadian Natural reported cash flow that beat consensus expectations on lower operating costs,” said Mr. Ollenberger. “The company also increased its dividend by 25 per cent earlier than expected as total debt is expected to reach target levels in Q4/21. We anticipate that Canadian Natural will generate roughly $10-billion of pre-dividend free cash flow in 2022, implying a 17-per-cent yield.

“We believe the shares remain attractively valued on rapidly growing free cash flow.”

* RBC’s Paul Treiber lowered his target for Information Services Corp. (ISV-T) to $30 from $32 with a “sector perform” rating. The average is $34.65.

“ISC reported mixed Q3 results, with adj. EBITDA and adj. EPS slightly above expectations, despite lower revenue. While growth is likely to decelerate further in 2022 as the Saskatchewan real estate market continues to normalize, improved operational efficiencies help mitigate the impact on profitability,” said Mr. Treiber.

* Mr. Treiber hiked his Constellation Software Inc. (CSU-T) target to $2,700 from $2,300 with an “outperform” rating, while Raymond James’ Steven Li increased his target to $2,200 from $2,100, reiterating a “market perform” rating. The average is $2,397.42.

“Constellation reported Q3 effectively in line with consensus and our expectations,” Mr. Treiber said. “Organic growth continues to normalize from COVID-related headwinds in 2020. M&A is tracking strongly, with capital deployed likely to reach $1.3-billion in 2021, which is more than double Constellation’s previous annual high. Maintain Outperform, as we see Constellation continuing to compound capital at high rate.”

* CIBC’s Krista Friesen cut her target for Martinrea International Inc. (MRE-T) to $16 from $19 with an “outperformer” recommendation, while Scotia Capital’s Mark Neville lowered his target to $16 from $17.25 with a “sector perform” rating. The average is $17.44.

“MRE reported Q3 results that came in below our and consensus expectations,” Ms. Friesen said. “While Q3 was significantly worse than expected, and we are unlikely to see much improvement in Q4, MRE has maintained its outlook for 2023. Much of MRE’s 2023 outlook is dependent on the industry’s ability to move past the chip issue, which we believe is likely. Once the chip shortage is a thing of the past, the auto industry is set for an extended peak production cycle, which bodes well for MRE’s earnings recovery.”

* RBC’s Michael Harvey raised his Paramount Resources Ltd. (POU-T) target to $25 from $22, reiterating a “sector perform” rating, while Stifel’s Cody Kwong hiked his target to $31 from $22 with a “buy” rating and BMO’s Ray Kwan moved his target to $30 from $25 with an “outperform” rating. The average is $27.23.

“Q3/21 results were ahead of street expectations and highlighted by a tripling of the company’s base dividend, with the outlook increased for both 2021 and 2022 on higher commodity prices. With substantial FCF forecasted for 2022 this keeps the door open for additional RoC initiatives - and potentially acquisitions - should market conditions warrant,” Mr. Harvey said.

* Mr. Harvey increased his Arc Resources Ltd. (ARX-T) target to $17 from $16 with an “outperform” rating. Others making changes include: BMO’s Randy Ollenberger to $17 from $16 with an “outperform” rating, Scotia Capital’s Cameron Bean to $23 from $22 with a “sector outperform” rating and Canaccord Genuity’s Anthony Petrucci to $18 from $17 with a “buy” rating.. The average is $17.21.

“Q3 results were ahead of Street and featured a 52-per-cent dividend increase (now 3.3-per-cent yield) as return-of-capital initiatives gather steam. FCF of $500 million generated in Q3 showcases strong performance of the combined asset base. Focus shifts to balancing of shareholder returns and capital spending as we await Attachie sanctioning (on hold until resolution of BRFN file). ARX remains on the Global Energy Best Ideas List,” said Mr. Harvey.

* Desjardins Securities analyst Gary Ho cut his Goeasy Ltd. (GSY-T) target to $200 from $202, below the $236.86 average, with a “buy” rating, while Raymond James’ Stephen Boland increased his target to $207 from $182 with an “outperform” rating and BMO’s Étienne Ricard bumped up his target to $226 from $207 also with an “outperform” rating.

“GSY reported in-line 3Q results,” Mr. Ho said. “The shares fell 6 per cent, likely due to 4Q guidance in our view. That said, we believe this presents an attractive buying opportunity. Management’s three-year outlook remains intact, driven by existing and new initiatives underway. Stepping back, GSY is in the early innings of building a platform offering sub- and near-prime customers a full suite of financial products with an ample runway for growth.”

* RBC’s Luke Davis bumped up his target for Cardinal Energy Ltd. (CJ-T) to $5.50 from $5 with a “sector perform” rating. The average is $5.60.

“Cardinal’s quarter was generally as expected, with 2022 guidance backstopping continued balance sheet deleveraging and the likely reinstatement of a dividend in 2022. We are encouraged by the company’s three-phase plan, which provides clarity around future capital allocation priorities,” said Mr. Davis.

* RBC’s Geoffrey Kwan increased his IGM Financial Inc. (IGM-T) target to $54 from $52, keeping a “sector perform” rating. The current average is $53.56.

“IGM delivered strong Q3/21 results with EPS of $1.13 ahead of our and consensus forecast of $1.06,” said Mr. Kwan. “IGM has been executing well on its transformation and growth strategy (e.g., Mackenzie’s very strong and consistent net sales) and more recently has shown further progress, as IG Wealth has started generating more consistent strong monthly net sales. We believe IGM should appeal to investors looking for exposure to the asset/wealth management industry via a company that is already delivering strong and improving fundamentals and is reasonably valued, with an attractive dividend yield (4.5 per cent) and potential catalysts (e.g., value-surfacing/creating transactions within the POW portfolio involving IGM).”

* National Bank Financial analyst Vishal Shreedhar increased his target for Premium Brands Holdings Corp. (PBH-T) to $155 from $148 with an “outperform” rating and Desjardins Securities’ David Newman raised his target to $157 from $140 with a “buy” rating. The average is $145.18.

“PBH is at an inflection point after a period of heavy investment,” said Mr. Newman.

* Mr. Shreedhar cut his Saputo Inc. (SAP-T) target to $36 from $39 with a “sector perform” rating. Others making target changes include: BMO’s Peter Sklar to $39 from $42 with an “outperform” rating; CIBC’s Mark Petrie to $38 from $41 with an “outperformer” recommendation and Desjardins Securities’ Chris Li to $37 from $38 with a “buy” rating. The average is $38.25.

“Saputo reported Q2 results below modest expectations driven by weakness in U.S. and International segments,” said Mr. Petrie. “The commodity environment remains generally unfavourable, though the escalating impact of labour and supply chain challenges compounds the problem. Our forecasts are again reduced, though we still expect material improvement in F2023 and beyond. Patience is required, but we believe there is substantial upside as margins improve.”

* National Bank’s Tal Woolley raised his Choice Properties Real Estate Investment Trust (CHP.UN-T) target to $15.50, matching the consensus, from $15, keeping a “sector perform” rating, while TD Securities’ Sam Damiani raised his target to $16 from $15.50 with a “hold” rating.

* National Bank’s Jaeme Gloyn increased his Trisura Group Ltd. (TSU-T) target to $62 from $60 with an “outperform” rating. The average is $54.43.

* Desjardins Securities analyst Benoit Poirier increased his Stantec Inc. (STN-T) target to $81 from $75, topping the $76.50 average, with a “buy” rating.

“STN reported decent 3Q results and reiterated its 2021 guidance. Management painted a bullish outlook for 2022, supported by the recent acquisition of Cardno’s assets in North America and Asia-Pacific, as well as the strong slate of organic growth opportunities from the green transition and potential stimulus funding in the US. STN has the strongest exposure to the US in our E&C coverage,” he said.

* Scotia Capital analyst George Doumet raised his Jamieson Wellness Inc. (JWEL-T) target to $41 from $40, keeping a “sector perform” rating. The average is $42.80.

“JWEL results were largely in line with our and Street expectations,” he said. “Q3 benefited from material price increases and showed evidence of successfully navigating supply chain risks and transportation cost pressures. Lastly, JWEL nudged up its 2021 revenue guidance by 1 per cent while narrowing its guidance range to the upper ends for both adj. EBITDA and adj. EPS.

“While we expect volumes to normalize in 2022 and beyond, we are of the view that this is largely baked into the share price (with JWEL trading at 16.5 times our 2022 estimates). We look for evidence of improvements in FCF conversion and greater visibility in international market growth before getting more constructive on the name.”

* Scotia’s Orest Wowkodaw cut his Labrador Iron Ore Royalty Corp. (LIF-T) target by $1 to $40 with a “sector outperform” recommendation. The average is $41.71.

“LIF reported slightly better than anticipated Q3/21 results. We continue to see a relatively robust dividend outlook despite markedly lower Fe prices. Overall, we view the update as largely neutral for LIF shares,” said Mr. Wowkodaw.

* Ahead of the release of its third-quarter results, Raymond James analyst Steve Hansen cut his target for Superior Plus Corp. (SPB-T) by $1 to $16.25, 2 cents below the consensus, with an “outperform” rating.

“We are trimming our target price ... based upon modest downward revisions our financial forecast, primarily reflecting tweaks to our U.S. volume/margin assumptions, higher estimated opex, and a shift in the timing of assumed acquisitions,” he said. " Despite these revisions, we continue to recommend shares of Superior Plus based upon our constructive view of the firm’s long-term growth prospects (organic, M&A), associated synergy opportunities, and attractive valuation/dividend yield.”

* Raymond James analyst Bryan Fast increased his target for shares of Toromont Industries Ltd. (TIH-T) to $120 to $115 with an “outperform” rating. The average is $118.22.

“Our constructive stance on Toromont remains intact as the company consistently delivers solid results,” he said. “As end markets continued their recovery and activity levels improved, the company posted year-over-year EBIT and EPS growth of 19 per cent and 20 per cent respectively with 25-per-cent ROIC. Further, a net cash position continues to build on the balance sheet, despite being active on the NCIB. As markets recover, Toromont is well positioned to continue down the path of delivering solid shareholder returns. Supply constraints remain a hurdle and could extend delivery dates but we have confidence in Toromont’s team to navigate the waters.

“Although current valuation is through the high-end of the historical range and the stock is hitting fresh highs, we expect investors to continue to pay a premium for high quality, liquid stocks such as Toromont.”

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