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

IA Capital Markets analyst Naji Baydoun thinks a widening valuation gap between Canadian independent power producers is presenting a buying opportunity in several equities.

“Over the past few years, IPPs have experienced heightened volatility in the public markets, with a break-out to new valuation highs in 2020 for renewable IPPs followed by a normalization of equity valuations in 2021,” said Mr. Baydoun. “Publicly-traded IPPs have seen their shares experience valuation multiple re-ratings between 6-20 times on a forward EV/EBITDA basis; meanwhile, precedent transactions in the power sector remain particularly strong for clean power assets, with (1) average EV/EBITDA multiples of 10-15 times for wind and solar assets (with a slight premium for offshore wind relative to onshore renewables) and 15-25 times for hydro (compared to 7-9 times for thermal assets), and (2) some exceptional businesses being recently priced at 19-20 times EV/EBITDA multiples (established platforms with strong growth potential). Based on the differences we are observing between public equity valuations of IPPs and M&A multiples being paid for similar/relevant infrastructure assets, we highlight pockets of opportunities for investors in the IPP sector.”

In a research report released Friday, he said recent market data points to a 1-4 times EV/EBITDA valuation gap between publicly-listed renewable IPPs relative to comparable transactions, representing 10-50-per-cent share price upside.

Mr. Baydoun highlighted “attractive” relative valuations for a trio of stocks: Innergex Renewable Energy Inc. (INE-T), TransAlta Corp. (TA-T) and Polaris Infrastructure Inc. (PIF-T).

“INE, TA and PIF trade at a relative discount to their sum-of-the-parts potential (SOTP, details herein) (excluding growth and yield profiles),” he said. “INE’s exposure to premium hydro assets does not seem to be reflected in its current stock price and relative valuation; furthermore, increased visibility on project and/or funding initiatives, and execution on upcoming development milestones could help the shares recapture some of their historical relative valuation premium. For TA, we believe its clean energy transition plans should underpin significant valuation multiple expansion over time. Meanwhile, PIF’s portfolio diversification initiatives are beginning to bear fruit, and should result in lower portfolio risk and higher relative valuation over the near-term.

He raised his rating for Innergex to “strong buy” from “buy” with a $25 target, exceeding the $21.95 average on the Street, according to Refinitiv data.

“Based on its hydro exposure (which should command a premium), we believe the shares to be trading at a significant discount to peers, and thus see the potential for a positive valuation multiple re-rating as the company executes on its growth strategy,” said Mr. Baydoun. “Although we expect most companies under coverage to deliver mid-to-high-single digit average annual FCF/share growth over the medium-term (primarily from organic investments), we see strong potential for INE to deliver attractive risk-adjusted returns for shareholders at their current respective relative valuation multiples compared to peers.”

Mr. Baydoun also upgraded TranAlta to “strong buy” from “buy” with a $16.50 target, topping the $16.09 average.

“TA’s shares continue to trade at a significant discount to peers, and the current share price does not seem to include much value for the Company’s ongoing clean energy transition plan,” he said. “We continue to consider TA as a compelling value play in the Canadian IPP sector, ad our investment thesis remains underpinned by the Company’s potential transformation to a lower-risk, more diversified, and predominantly renewable power IPP. Furthermore, the near-term outlook for TA’s merchant power fleet in Alberta remains strong, which should support (1) robust near-term FCF generation, (2) self-funded growth, and (3) incremental return of capital to shareholders (via dividend increases, and potentially buybacks). We believe that TA’s current growth strategy should support low single-digit growth and valuation multiple expansion over time, potentially making the shares worth closer to $18-20 per share (with both downside protection and upside optionality from Brookfield’s strategic support).”

He maintaining a “buy” rating and $23 target for Polaris shares. The average is $26.70.

“Despite delays in deploying excess capital, in March 2022, PIF announced two acquisitions in Ecuador and Panama,” said Mr. Baydoun. “These transactions are expected to (1) allow PIF to expand into new jurisdictions and technologies, (2) add near-term cash flows, (3) provide the opportunity for follow-on investments, and (4) reduce portfolio concentration. These diversification initiatives (and potentially more that could be executed shortly) position PIF to reduce its overall risk profile, and thus support a positive valuation multiple re-rating of the stock. Overall, we believe that PIF’s shares offer compelling exposure to an undervalued, small-cap, pure-play renewable IPP; as the Company continues to execute on its diversification and growth strategy (e.g., incremental M&A-related catalysts), we see the potential for the shares to experience significant valuation multiple expansion over the near-term.”

Conversely, Mr. Baydoun downgraded a pair of stocks:

* Brookfield Renewable Partners LP (BEP.UN-T, BEP-N) to “hold” from “buy” with a US$45 target. The average is US$40.46.

“The shares have appreciated 15 per cent year-to-date, outperforming peers; this has driven the relative valuation gap with peers to elevated levels, making the shares less attractively valued, in our view,” he said. “Although we see the potential for BEP’s shares to deliver strong growth, we are electing to take a more neutral stance on the shares given the (1) 20 per cent and 45 per cent relative valuation premium to peers compared to (1) 10 per cent and 30 per cent one year ago, and (2) 20 per cent historically (based on forward P/FCF and EV/EBITDA metrics, respectively), and (2) limited upside to our price target. Finally, the recent decision to not pursue the potential acquisition of AGL Energy Limited (AGL-A, Not Rated) also removes a near-term large-scale investment opportunity and growth catalyst for the shares.”

* Northland Power Inc. (NPI-T) to “buy” from “strong buy” with a $47 target, above the $45.71 average.

“We continue to expect 2022 to be a significant year of offshore wind milestones, which should further de-risk NPI’s long-dated growth initiatives (particularly in Taiwan),” he said. “Based on our SOTP analysis, although the shares do not seem to be trading at a discount to peers, we believe that the current share price does not include any value for the company’s significant growth pipeline. Recall that NPI continues to develop a substantial amount of offshore wind projects globally that are expected to drive strong long-term organic growth. Furthermore, we continue to see the potential for NPI to execute on its first offshore wind sell-down in 2022; this could (1) surface incremental value for the Company, and (2) serve as a proof of concept for NPI’s ability to source attractive, low-cost capital and self-fund its future growth. However, based on the recent share price appreciation and more limited upside to our price target, we are electing to revise NPI to Buy.”


IA Capital Markets analyst Matthew Weekes sees Mullen Group Ltd. (MTL-T) as a “long-term buy and hold,” believing it “continues to represent a compelling buying opportunity.”

“In the short term, we expect pricing leverage and positive exposure to industrial recovery,” he said. “MTL had renewed headwinds in its S&IS segment in 2021 due to weakness in Premay Pipeline Hauling. Premay will likely continue at similar levels in 2022, but we forecast improved performance from the S&IS segment overall, which includes diversified services that should benefit from improved industrial activity, primarily in the oil and gas sector. Additionally, MTL expects upward trends in Canadian trucking markets, following trends that have been observed in U.S. markets, enabling pricing leverage in trucking and logistics (T&L) operations.”

In a research note released Friday, Mr. Weekes said he expects Mullen’s discount to peer TFI International Inc. (TFII-T), which is approximately 2.5 times on an enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) basis, is likely to narrow moving forward.

“MTL lost about half of its ROIC from 2014-2016 when oil and gas declined, and since then has been steadily working to grow it back,” he said. “From 2017-2021, the Company has expanded ROIC by over 2 per cent. We expect this to continue as MTL focuses on growing its T&L businesses and achieves a higher overall asset turnover.”

“The acquisition of the U.S.-based third-party logistics (3PL) business in 2021 was overshadowed by declines in Premay and the lower-than-expected 2022 guidance. However, we believe that the entry into the U.S. through the 3PL market, which is one of the fastest growing areas of the logistics market (third-party estimates have pegged 8.5-per-cent CAGR), will provide future organic growth and additional U.S. M&A opportunities.”

Maintaining a “strong buy” recommendation, Mr. Weekes raised his target to $16.50 from $16, seeing the potential to generate long-term returns. The average is currently $14.86.


While supply chain headwinds continue to “temper” its near-term outlook, National Bank Financial analyst Zachary Evershed thinks Savaria Corp.’s (SIS-T) long-term objectives “paint significant upside.”

On Wednesday, the Laval-based accessibility company reported in-line fourth-quarter financial results, including a 109.2-per-cent year-over-year revenue gain, that were deemed “unsurprising” by Mr. Evershed.

“Savaria unveiled an ambitious internal target of generating Adj. EBITDA margins of 20 per cent by 2025 (complementing the $1 billion revenue goal), an increase of 480 basis points over the 15.2-per-cent margin the company generated in 2021,” the analyst said. “We expect the initial step up in 2022 will consist of the cumulative impact of price hikes implemented in Q3/21 and Q1/22 (on a 60-day lag), offsetting freight and input cost inflation which depressed margins in 2021. For further gains, we look to pricing and production optimization, especially in the Patient Care segment, as well as the introduction of automation and Handicare best practices in the rest of Savaria’s operations. As a point of reference, management notes Handicare is 4 times more productive in curved stairlift production, indicating the potential for torque.”

“Management remains confident in its previously announced guidance, calling for revenue of over $775 million, implying year-over-year growth of over 17 per cent (we see 9.0-per-cent organic and 9.2 per cent from two months of Handicare), and Adj. EBITDA of $120-130 million, implying margin expansion of 90 bps at the midpoint. Savaria may close small tuck-ins, but management does not intend to execute on large opportunities this year, instead focusing on Handicare’s integration, operational improvements and repaying debt. We see leverage dropping by 0.5 times annually from the current 3 times pro forma, absent any M&A. Tuck-ins of interest would expand Savaria’s dealer network, enhance the company’s product offering, or vertically integrate key supply components such as the recent Ultron acquisition.”

Though he remains confident in Savaria’s “ability to accelerate out of the pandemic, supported by an exceptional backlog” and reiterated his “outperform” rating for its shares, Mr. Evershed cut his target by $1 to $23.50 after lowering his margin estimates to “acknowledge” supply chain headwinds. The average target is $24.89.

Elsewhere, maintaining a “buy” rating and $25.50 target, Desjardins Securities’ Frederic Tremblay called Savaria “too cheap to ignore.”

“We believe that a depressed valuation, which looks highly disconnected from the business’s fundamentals, offers one of the best buying opportunities on this stock in years. Successfully navigating supply chain/inflation obstacles and integrating a large acquisition in 2021 have showcased the strength of this team. Demand, pricing, operations and synergies are all moving in the right direction and point to short- and long-term success,” said Mr. Tremblay.


Following the withdrawal of its application for an Environmental Impact Assessment (EIA) of the Penco Module project in Chile, Canaccord Genuity analyst Katie Lachapelle downgraded Aclara Resources Inc. (ARA-T) to “hold” from “speculative buy,” citing “significant uncertainty surrounding the potential receipt of permits.”

“A timeline for the revised application was not provided by the company,” she said. “We expect the government consultation process to take a minimum of one year, after which a new EIA can be submitted for approval. The EIA could then take another year to receive approval.

“AccordIngly, we have moved our production timeline back by two years to 2026, from 2024.”

Ms. Lachapelle cut her target for the Vancouver-based miner to $1 from $2. The average is $1.13.

Elsewhere, RBC’s Andrew Wong also his target by a loonie to $1.25 with an “outperform” rating.

“We are disappointed by the significant delay in permitting and are concerned by elevated risks to the process,” he said. “We expect investor interest may be relatively limited while we await for clarity on the permitting situation and shares may drift in the interim. However, the project economics remain largely intact and we think there is strong optionality with shares trading near cash value.”


Believing its 2022 guidance “implies limited valuation upside,” Stifel analyst Justin Keywood lowered Knight Therapeutics Inc. (GUD-T) to “hold” from “buy” following an earnings release that fell short of the Street’s expectations.

“Knight reported Q4 results (end Dec.) that showed improvement in the business year-over-year but missed estimates,” he said. “Notably, adjusted EBITDA was $6-million versus $0 last year but below consensus at $10-million and our estimate of $13-million. Hyperinflation headwinds in LATAM was in-part contributing to the lighter-than-expected results. Knight also issued revenue guidance for the first time and expects to achieve sales of $260-million-$265-million in 2022 (8-per-cent growth at the mid-point). The business has improved substantially over the [last 12 months] with EBITDA expanding from $21-million to $38-million, up 126 per cent year-over-year and the stock has been a good place to hide in volatile markets but these results and guidance implies limited valuation upside, where Knight trades at 14 times 2022 EBITDA. We also see seasonal weakness for the upcoming Q1 results and downgrade our rating.”

Seeing a “fair” valuation “given the growth outlook and complexity in the business,” Mr. Heywood cut his target to $5.30 from $7. The average is $7.19.

Others making changes include:

* Raymond James’ David Novak to $7.50 from $8.50 with an “outperform” rating.

“Considering the ongoing valuation deflation plaguing the broader healthcare/biotech sector, as evidenced by the XBI which is now tracking down 30.7 per cent on a TTM [trailing 12-month] basis vs. the S&P 500 tracking up 15.6 per cent over the same time frame, we continue to view Knight as one of the best defensive names to own in the Canadian healthcare sector,” he said. “Furthermore, Knight’s current free cash flow profile, well capitalized balance sheet, and future growth profile, positions the company well in a raising inflationary environment, where many healthcare equities continue to be impacted by the devaluation of future cash flows.”

* National Bank’s Endri Leno to $7.50 from $8 with an “outperform” rating.

“Despite the Q4 miss, we remain positive on GUD’s ability to grow both from its current product portfolio (we forecast 8 per cent/10 per cent in 2022/2023 given normalizing sales activity) and via new product acquisitions ($150-million cash balance),” said Mr. Leno.

* Canaccord’s Tania Armstrong-Whitworth to $7 from $8 with a “buy” rating.


Stifel analyst Suthan Sukumar initiated coverage of four cryptocurrency miners on Friday.

They are:

* HIVE Blockchain Technologies Ltd. (HIVE-Q, HIVE-X) with a “speculative buy” rating and US$3.75 target. The average on the Street is US$5.

“We view HIVE as a leader in the industrial-scale cryptocurrency mining space given a unique combination of established scale, next-generation hardware, and low-cost, 100-per-cent renewable power,” he said. “The company has been building on its ethereum mining roots with a rapidly expanding bitcoin mining footprint through strategic expansions, which is driving an outlook for strong revenue growth and profitability. With a HODL strategy growing in prominence and a healthy balance sheet from recent capital raises, we see potential for the company to continue to scale aggressively yet responsibly as it prioritizes its peer-leading operational efficiency.”

* Hut 8 Mining Corp. (HUT-Q, HUT-T) with a “speculative buy” rating and US$11 target. The average is US$12.80.

“We view HUT as one of the pioneers in the publicly-traded bitcoin mining landscape,” he said. “With a strong track record and healthy balance sheet from recent capital raises, we see the company well positioned to execute on its growth plan, allowing it to increase its operating scale and capacity with a more competitive cost profile in the coming quarters. A focus on diversification into non-mining revenues streams and traditional data center operations set the stage for more strategic optionality ahead as the company navigates cryptocurrency market dynamics and new emerging business opportunities ahead. As one of the leading HODL’ers in the industry, the +6k bitcoin on the balance sheet, or US$250-million at the current spot price, makes valuation appear more attractive, in our view.”

* Argo Blockchain PLC (ARBK-Q) with a “hold” rating and US$11 target. The average is US$22.71.

“We view Argo as an interesting growth story in the cryptocurrency mining space that is in the midst of an aggressive ramp up in scale and capacity of its bitcoin mining operations,” he said. “A focus on technology differentiation with immersion mining technology is expected to provide the company better performance and efficiency gains, leaving it well positioned to deliver on a significant ramp up in hash rate growth, which should translate to strong revenue growth and profitability ahead. Strategic investments across the web3 space also provide unique diversification and sources of potential upside. While we like the company’s differentiated growth strategy, we see a challenging outlook for capital raising to fund ongoing expansions given their smaller scale and already high leverage relative to peers.”

* Greenidge Generation Holdings Inc. (GREE-Q) with a “hold” rating and US$10 target. The average is US$27.50.

“We view Greenidge as a unique play in the cryptocurrency mining space given its key differentiation as a vertically integrated miner, which should afford the company with significant competitive go-to-market advantages as it looks to meaningfully grow its share of the bitcoin network hash rate,” he said. “With ambitious expansion plans led by experienced leaderships with inhouse engineering and electrical expertise, we see a path to significant hash rate growth with strong revenue growth and profitability. That said, high leverage and regulatory hurdles impacting expansion at the company’s main New York State facility keep us on the sidelines with respect to the stock. We would potentially grow more bullish once we gain clarity on the company’s ability to overcome the regulatory red tape and continue funding and executing on its expansion plans”


After increases to the firm’s crude and natural gas price assumptions through 2023, equity analysts at Raymond James raised their target prices for energy stocks in their coverage universe.

For senior producers, their changes were:

  • Canadian Natural Resources Ltd. (CNQ-T, “outperform”) to $87 from $77. Average:
  • Cenovus Energy Inc. (CVE-T, “outperform”) to $27 from $22. Average: $23.48.
  • Imperial Oil Ltd. (IMO-T, “market perform”) to $65 from $57. Average: $80.41.
  • Ovintiv Inc. (OVV-N/OVV-T, “market perform”) to US$60 from US$52. Average: US$56.62.
  • Suncor Energy Inc. (SU-T, “outperform”) to $50 from $46. Average: $46.18.

Their adjustments for intermediate producers were:

  • Advantage Energy Ltd. (AAV-T, “outperform”) to $12 from $9.50. Average: $10.19.
  • ARC Resources Ltd. (ARX-T, “outperform”) to $22 from $17.50. Average: $20.23.
  • Baytex Energy Corp. (BTE-T, “outperform”) to $9 from $6.50. Average: $6.43.
  • Birchcliff Energy Ltd. (BIR-T, “outperform”) to $11 from $10. Average: $9.96.
  • Crescent Point Energy Corp. (CPG-T) to $12 from $10. Average: $11.91.
  • Enerplus Corp. (ERF-N/ERF-T, “outperform”) to US$20 from US$15.50. Average: $19.21.
  • Freehold Royalties Ltd. (FRU-T, “outperform”) to $20 from $19. Average: $18.04.
  • Kelt Exploration Ltd. (KEL-T, “outperform”) to $8 from $6.50. Average: $7.77.
  • NuVista Energy Ltd. (NVA-T, “outperform”) to $14.50 from $11.50. Average: $12.48.
  • Paramount Resources Ltd. (POU-T, “outperform”) to $37 from $33. Average: $34.75.
  • Peyto Exploration & Development Corp. (PEY-T, “outperform”) to $15 from $13. Average: $14.80.
  • PrairieSky Royalty Ltd. (PSK-T, “outperform”) to $26 from $22.50. Average: $20.55.
  • Spartan Delta Corp. (SDE-T, “outperform”) to $13 from $10. Average: $13.27.
  • Tamarack Valley Energy Ltd. (TVE-T, “strong buy”) to $7 from $6. Average: $6.96.
  • Topaz Energy Corp. (TPZ-T, “strong buy”) to $27 from $26. Average: $24.89.
  • Tourmaline Oil Corp. (TOU-T, “strong buy”) to $80 from $70. Average: $68.08.
  • Vermilion Energy Inc. (VET-T, “outperform”) to $38 from $30. Average: $27.10.
  • Whitecap Resources Inc. (WCP-T, “strong buy”) to $14.50 from $12.50. Average: $12.89.


In other analyst actions:

* Prior to the March 30 release of its first-quarter financial results, Barclays’ John Aiken raised his AGF Management Ltd. (AGF.B-T) target to $8 from $7.50, keeping an “equal weight” recommendation. The average on the Street is $9.

“We anticipate higher year-over-year earnings driven by solid growth in assets under management (AUM), continued positive retail flows, and a boost to profitability from AGF’s private alternative platform,” he said. “Additionally, with a declining pay-out ratio, strong balance sheet, and the expectation for increased cash flow later this year with the elimination of DSC, we are forecasting an 11-per-cent increase to AGF’s dividend in conjunction with earnings.”

* CIBC World Markets analyst Krista Friesen cut her target for Boyd Group Services Inc. (BYD-T) to $180 from $230 with a “neutral” rating, while TD’s Daryl Young lowered his target to $220 from $230 with a “buy” rating. The average on the Street is $212.77.

* CIBC’s Anita Soni reduced her Centerra Gold Inc. (CG-T) target to $13.75 from $14, exceeding the $12.55 average, with a “neutral” rating.

* In response to softer-than-anticipated fourth-quarter 2021 results, Canaccord Genuity’s Derek Dley cut his Charlotte’s Web Holdings Inc. (CWEB-T) target to $3 from $5, reiterating a “buy” rating. The average is $2.80.

“We assign a premium valuation to Charlotte’s Web partly to reflect the potential upside from the sale of CBD ingestibles in the FDM channel, which we currently do not include in our estimates,” he said. “We believe Charlotte’s Web represents the most attractive investment in the growing CBD space. The company boasts an industry-leading brand, the largest network of retail partners, and a best-in-class management team. As a result, we are comfortable assigning a premium valuation to Charlotte’s Web.”

* Calling its acquisition by Cresco Labs Inc. (CL-CN) a “landmark” merger that highlights its portfolio and improving operations, Echelon Partners’ Andrew Semple cut his target for Columbia Care Inc. (CCHW-CN) target to $10 from $14 with a “buy” rating. The average is $11.23.

“Since this is an all-stock transaction, Columbia Care shareholders will continue to have full exposure to limited license U.S. cannabis markets upon closing,” he said. “We see good potential for healthy upside in the combined company, which will have a strengthened market position and diversification, a de-levered balance sheet, and improved access to capital. However, in return for these benefits, Columbia Care shareholders are likely to have less upside torque than as a standalone entity (in our view), as proceeds from divestitures (though significant) may not fully offset the foregone earnings power, and exposures to key torque markets (such as New Jersey and Virginia) are diluted down within the larger pro forma entity. In summary, we believe this transaction has risk/reward tradeoffs for CCHW shareholders, where the pro forma company would be much more deeply ingrained in key markets for long-term success (operationally de-risked), though implied upside will moderate.”

* Mr. Semple also reduced his Jushi Holdings Inc. (JUSH-CN) target to $8 from $12, below the $10.21 average, after weaker-than-expected fourth-quarter results. He kept a “speculative buy” rating.

“The revised guidance reflects the expected weakness in H122 also identified by Jushi’s peers, regulatory delays, and the Company moving slower than expected to bring production capacity to market,” he said. “There is room for Jushi to perform better than expected in 2022 to our now reduced estimates, with the primary factors in our view being an improvement to the medical patient onboarding process in Virginia and tighter expense management in 2022.”

* BMO’s Ryan Thompson cut his Fortuna Silver Mines Inc. (FVI-T) target to $6.50 from $7 with an “outperform” rating. The average is $5.70.

* Ms. Soni raised his New Gold Inc. (NGD-N, NGD-T) target to US$2.10 from US$1.75 with a “neutral” rating. The average is US$1.91.

* Canaccord Genuity’s Carey MacRury increased his GCM Mining Corp. (GCM-T) target to $9.75, below the $11.46 average, from $9.50 with a “buy” rating.

* CIBC’s Hamir Patel lowered his target for Loop Energy Inc. (LPEN-T) to $4 from $4.50 with a “neutral” rating. Others making changes include: National Bank’s Rupert Merer to $8.50 from $9 with an “outperform” rating and Raymond James’ Michael Glen to $4 from $10 with a “market perform” rating. The average is $8.40.

“Although recent tailwinds support the sector, the inflection point for hydrogen could still be a couple of years away. With some adjustments to our growth forecasts and a reset in sector valuations, we decreased our target,” said Mr. Merer.

* RBC’s Sabahat Khan lowered his target for Mav Beauty Brands Inc. (MAV-T) to $1 from $1.50 with a “sector perform” rating, while Canaccord’s Matthew Lee cut his target to $1 from $2 with a “hold” rating and Acumen Capital’s Nick Corcoran also reduced his target to $1 from $2 with a “hold” rating. The average is $1.25.

“Our key takeaway from MAV’s Q4 is that the company appears to be seeing positive traction on its Cake and Marc Anthony brands but continues to see headwinds relating to lower distribution and supply chain issues,” said Mr. Lee. “On the call, management noted that it’s working diligently to streamline its operations, improve profitability, and revitalize lagging brands with the objective of returning to above-industry growth over the medium term. In our view, this endeavor will likely span across F22 but expect that a successful transition could lead to a rapid acceleration in cash flow in the medium term.”

* Berenberg’s Adrien Tamagno hiked his Nutrien Ltd. (NTR-N, NTR-T) target to US$120, above the US$102.93 average, from US$90 with a “buy” rating

* Following “strong” fourth-quarter results and fiscal 2022 guidance, Raymond James’ Stephen Boland increased his Payfare Inc. (PAY-T) target to $16, above the $14.67 average, from $13.50 with an “outperform” rating.

“Payfare continues to paint the picture of a disruptive, thought-leading fintech with a rapidly evolving market opportunity in the pipeline,” he said.

* CIBC’s Sumayya Syed raised his Pro Real Estate Investment Trust (PRV.UN-T) target to $8.25 from $7.50 with an “outperformer” rating, while Canaccord’s Mark Rothschild bumped his target $8 from $7.50 with a “buy” rating and BMO’s Jenny Ma increased her target to $7.75 from $7.50 with an “outperform” rating. The average is $7.83.

“PRO REIT (PRO) continues to transition into a more focused industrial REIT, and its exposure to this asset class is approaching 65 per cent of revenue,” said Mr. Rothschild. “Internal growth has also picked up, and we expect mid single-digit annual internal growth over the next few years, primarily driven by marking rental rates to market. Management estimates that the gap between in-place and market rent for the REIT’s entire portfolio is 18 per cent, largely as a result of a gap of 26 per cent between in-place and market rents in the industrial portfolio. The REIT’s increased focus on the industrial sector should lead to greater and more stable cash flow growth and an improved multiple, in our view.”

* Canaccord’s Matthew Lee trimmed his Terago Inc. (TGO-T) target to $7.50 from $8.50, keeping a “buy” rating. The average is $6.45.

“TGO reported its Q4/21 earnings on Wednesday with revenue in line but EBITDA below our expectations,” said Mr. Lee. “Most importantly, the connectivity business appears to be reaching the inflection point with the company adding more subscribers in the quarter than it lost. Furthermore, ARPU appears to be stabilizing, which should be supported by the addition of larger customers and current clients adding 5G services. On the other hand, we were somewhat surprised by the connectivity EBITDA margins, which appear to be in the mid-teens.”

* BMO started Triple Flag Precious Metals Corp. (TFPM-T) with a “market perform” rating and $20 target, which is 45 cents lower than the average.

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