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

After the release of “solid” second-quarter results, RBC Dominion Securities analyst Paul Treiber thinks Magnet Forensics Inc.’s (MAGT-T) “significant” upward valuation re-rating is “likely to be sustained as investor visibility to long-term 30-per-cent-plus growth momentum continues to improve.”

“Since Q1 results, the stock has rallied 64 per cent, ahead of the S&P/TSX Composite up 7 per cent,” he said in a research note released Wednesday. “Magnet is now trading at 12 times calendar 2022 estimated EV/S [enterprise value to sales], up from 8 times after Q1. Magnet is trading at a slight premium to cybersecurity peers at 11 times and slightly below data analytics peers at 14 times, whereas it previously traded at a discount. We believe the valuation re-rating reflects improved investor sentiment regarding Magnet’s long-term 30-per-cent-plus growth momentum, given the reacceleration in revenue and ARR growth in 2021.”

Before the bell on Tuesday, the Waterloo, Ont.-based cybersecurity company, which went public in April, reported revenue of $16.5-million, up 42 per cent year-over-year and ahead of the forecasts of both Mr. Treiber ($15.7-million) and the Street ($15.5-million), driven by a 172-per-cent jump in term license. Adjusted earnings per share of 8 cents also topped expectations (2 cents), due, in large part, to lower costs.

With annual recurring revenue jumping 48 per cent to $49.6-million, versus Mr. Treiber’s estimate of $48.1-million, on new customer wins and existing customer expansion, the analyst now thinks Magnet’s revised 2021 guidance “appears conservative, which suggests further upside is possible.”

“Magnet raised FY21 guidance to $65.5-67.5-million revenue (30 per cent year-over-year mid-point) and $11.7-13.7MM adj. EBITDA, up from $64.5-66.5-million revenue and $9.7-11.2-million adjusted EBITDA previously,” he said. “We believe this outlook is conservative, in light of strong ARR growth year-to-date the improving global demand environment, new products, and new sales & marketing investments. Following Q2, we’re increasing our fiscal 2022 estimates to $88.0-million revenue and $13.1-million adjusted EBITDA, up from $86.2-million and $12.7-million previously.”

Seeing its shares “positioned to continue to outperform,” Mr. Treiber raised his target to $47 from $30, maintaining an “outperform” rating. The average on the Street is $47.58.

Others making target increases include:

* BMO Nesbitt Burns’ Thanos Moschopoulos to $45 from $27 with an “outperform” rating.

“While the stock has seen a significant re-rating in recent days, we believe this multiple expansion has been warranted given Magnet’s strong recurring revenue growth relative to SaaS comps (we’re forecasting 30-per-cent-plus recurring revenue growth in FY2022/23),” said Mr. Moschopoulos

* National Bank Financial’s John Shao to $45 from $35 with an “outperform” rating.


Nutrien Ltd. (NTR-T) has “executed well to benefit from the recent strength in ag and fertilizer market fundamentals,” according to RBC Dominion Securities analyst Andrew Wong.

Following Tuesday’s release of stronger-than-anticipated quarterly results and an increase to its full-year guidance, he was once of several equity analysts on the Street to raise his financial projections and target price for shares of the Saskatoon-based fertilizer giant, seeing it likely to “continue to benefit through a strong up-cycle that should last through at least 2022 and potentially into 2023.”

“We expect strong crop prices to support very positive farmer profitability, which should in turn drive fertilizer demand,” said Mr. Wong. “While there are some concerns around affordability at spot fertilizer prices, we think sustained crop price strength should support attractive fertilizer price ranges above mid-cycle levels through at least 2022 and potentially into 2023.”

“We expect potash markets to remain relatively tight through 2022 as strong crop prices support demand, supply takes time to catch up, and inventories are tight. Although additional supply due to the ramp-up of some new capacity and the re- start of production from Mosaic and Nutrien may ease tight supply, we see strong crop prices supporting potash prices at the $400-450 per ton level next year based on historical affordability trends.”

Also expecting nitrogen to continue its strength from strong demand and high energy prices,” Mr. Wong thinks Nutrien’s own improvements “also deserve recognition.”

“We think amid the strong ag and fertilizer market backdrop, Nutrien’s strong operating performance may be overlooked, but we highlight several important company factors contributing to strong financial performance - the Retail segment did well in procuring product for a strong spring season, notably evident in high crop nutrient margins; nitrogen operating rates have improved and should result in increased production in 2022; idled potash capacity is being re-started in a strong environment with minimal hiccup,” he said.

He increased his 2021, 2022 and 2023 earnings before interest, taxes, depreciation and amortization projections to US$6.3-billion, US$6.5-billion, and US$5.6-billion, respectively, from US$6.1-billion, US$5.4-billion, and US$5.2-billion.

That led him to raise his target for Nutrien shares to US$73 from US$69, reiterating an “outperform” recommendation. The average on the Street is $71.94.

“We expect these positive market conditions and solid execution to drive strong FCF generation that will likely be deployed through a combination of accretive growth investments and capital return to shareholder,” he said.

Other analysts making target adjustments include:

* Citi’s P.J. Juvekar to US80 from US$72 with a “buy” rating.

“Our three takeaways were (1) The underlying Ag fundamentals remain robust. The Retail segment beat EBITDA and raised guidance on what seems to be a robust year for all crop inputs. NTR’s per store EBITDA is now north of $1.2-million per year, up from $1.0-million per year last year. (2) NTR has announced 1 million increase in potash production, which should hit mostly in 4Q. That, coupled with higher potash prices, prompts to boost our Potash segment EBITDA. (3) While China exported 40 per cent more urea in 1H compared to a weak year last year, the Chinese government has urged to prioritize domestic demand, potentially setting tight conditions in 2H,” said Mr. Juvekar.

* CIBC’s Jacob Bout to US$77 from US$72 with an “outperformer” rating.

* Scotia Capital’s Ben Isaacson to US$70 from US$65 with a “sector outperform” rating.

* Berenberg’s Adrien Tamagno to US$77 from US$75 with a “buy” rating.

* Raymond James’ Steve Hansen to US$92 from US$82 with an “outperform” rating.

* JP Morgan’s Jeffrey Zekauskas to US$75 from US$70 with an “overweight” rating.


While Nuvei Corp. (NVEI-T, NVEI.U-T) exceeded expectations for its second-quarter financial results and raised its fiscal 2021 guidance, Citi analyst Ashwin Shirvaikar sees its shares as “fairly valued for the baseline growth it hopes to achieve” in the wake of a 15-per-cent jump on Tuesday.

“Prior to this quarter, we had raised our Nuvei expectations to above the company’s range (and clearly above consensus),” he said. “While Nuvei was a tad below our volume expectations, those did exceed consensus … moreover they clearly exceeded on all the KPIs (with revenues indicating a surprisingly higher yield).

“Importantly, Nuvei now believes its performance is sustainable as evidenced by its 30-per-cent-plus top-line outlook (both volumes and revenues) and longer-term 50-per-cent adjusted EBITDA margin target. Modestly incremental disclosures breaking down past performance were useful – a clearer framework to explain how it can build up to its financial metrics and goals would be quite beneficial, in our view.”

Before the bell on Tuesday, the Montreal-based electronic payment processing company reported second-quarter revenues of US$178-million, up 114 per cent year-over-year, exceeding its guidance range and ahead of both Mr. Shirvaikar’s US$161-million estimate and the consensus forecast of Street’s US$158-million forecast. The beat was driven by volume growth of 146 per cent.

After Nuvei raised its volume, revenue and earnings guidance, the analyst hiked his earnings per share projections for 2021, 2022 and 2023 to US$1.68, US$2.18 and US$2.95, respectively, from US$1.44, US$1.77 and US$2.16.

That led him to raise his target for Nuvei shares to US$100 from US$84 and reaffirm a “neutral” recommendation. The average is US$109.69.

“While we continue to believe in the many positives in the Nuvei story (high percentage of revenues from e-commerce; exposure to differentiated and growing revenue mix including online gaming; tech stack geared to take advantage of the revenue mix; attractive financial metrics, etc.), we are cautious of the risks (M&A-heavy backdrop; limited track record in current form; controlled corporation dynamics, etc.,),” said Mr. Shirvaikar. “Taken together, we believe the risk/reward is balanced. We believe the implied forward outlook should support the stock at current levels but also that a combination of sustained follow-through on the profitability metrics and better disclosure is needed to provide a material upside catalyst.”

Elsewhere, others making changes include:

* BMO Nesbitt Burns’ James Fotheringham to US$109 from US$72 with a “market perform” rating.

“Results surprised positively, with impressive volume growth across all regions, and a better take rate due to volume mix improvement (seasonally lower ACH). We view management’s guidance (for 2021E and “medium-to-long-term”) as conservative; our updated forecasts are slightly above new targets. Admittedly, we have chased NVEI higher with a Mkt rating, but we would wait for a pull-back before buying,” he said.

* CIBC World Markets’ Todd Coupland to $155 from $110 with an “outperformer” rating.

“We maintain that Nuvei’s shares are attractive and should be purchased,” he said.

* Scotia Capital’s Paul Steep to $123 from $109 with a “sector outperform” rating.

“Our view is that Nuvei delivered results that exceeded expectations driven by continued volume growth and expansion within existing clients as well as acquiring new customers,” said Mr. Steep. “Nuvei introduced Q3 guidance and raised its prior F2021 guidance, reflecting continued volume growth and expansion in the business along with the expected impact of acquiring Mazooma (Simplex is excluded from our estimates and guidance with closing expected in 2H 2021).

“We expect Nuvei will continue to grow through a combination of organic and acquired initiatives and that the company’s primary focus will remain on expanding its client base in new and existing verticals. We believe the firm will remain active in evaluating acquisitions that further enhance its product/service capabilities.”

* Canaccord Genuity’s Joseph Vafi to US$110 from US$105 with a “buy” rating.

* National Bank Financial’s Richard Tse to $150 from $120 with an “outperform” rating.

* Raymond James’ John Davis to $143 from $107 with an “outperform” rating.

* Credit Suisse’s Timothy Chiodo to US$145 from US$80.


Seeing the “demand and capacity stars aligning,” Citi analyst Paul Lejuez raised his rating for Gildan Activewear Inc. (GIL-T) to “buy” from “hold” on Wednesday.

“As a major supplier of blank Ts, polos and sweatshirts used for promotional events (concerts, athletic/professional events), GIL had a rough F20 as those events dried up,” he said. “But in 2Q21 despite these events not being back in full force, GIL sales are recovering faster than expected. We believe this points to an even greater sales recovery once events return to normal. At the same time these events are more likely to fully recover (F22), GIL also has additional manufacturing capacity coming on that will allow them to capture an incremental $500-million of sales (relative to F19 levels). And as the low cost provider of blank Ts, polos, sweatshirts and innerwear (underwear & hosiery), we believe they are well-positioned to capitalize on the improving demand picture.”

Mr. Lejuez also pointed to several other factors, including: Seeing Gildan’s Central America-based operations giving it a cost and proximity advantage over competitors centred in Asia; the potential brought by the addition of US$1.5-billion in incremental sales capacity over the next few years, which he thinks the Street isn’t properly accounting for, and the ability to expand “already favorable” price gaps after already hitting its 18-per-cent EBIT margin target.

Raising his fiscal 2021 and 2022 earnings per share projections to US$2.30 and US$2.85, respectively, from US$1.99 and US$2.50 based on updated sales and margin outlook, he bumped his target to US$44 from US$36. The average is US$41.52.

“We are increasing our DCF based TP from $36 to $44 to reflect our higher estimates and lower discount rate, which goes from 10 per cent to 8 per cent,” he said. “We believe the lower discount rate is appropriate in the current environment for GIL, which has a competitive advantage as a low cost provider with significant scale (a competitive moat) and a more visible growth trajectory.”


Following Tuesday’s release of in-line second-quarter results, CIBC World Markets analyst Nik Priebe raised his recommendation for CI Financial Corp. (CIX-T) to “outperformer” from “neutral,” seeing mounting evidence of a turnaround.

“On a year-to-date basis, CI has experienced a considerable improvement in investment performance across the product line-up and an abrupt reversal in the trajectory of net flows,” he said. “The second quarter marked the first quarter of positive asset management flows in almost four years, and the corresponding improvement in investment performance may support a sustained recovery. Despite this recent momentum, the stock trades at 7.6 times NTM consensus EPS (intraday) versus North American peers that generally trade at 11 times to 12 times. We no longer feel that CI’s inexpensive valuation can be explained by the organic growth outlook on the asset management side of the business and are upgrading shares of CIX.”

Mr. Priebe’s target rose to $30 from $24 and above the $28.33 average.

Others making changes include:

* Desjardins Securities’ Gary Ho to $29 from $27 with a “buy” rating.

“We maintain our Buy rating on the back of: (1) improving signs of retail net flows; (2) increased traction of the US RIA buildout and solid net organic growth rate as well as the healthy EBITDA margins this platform generates; and (3) valuation remains attractive and CI’s NCIB should support the shares,” said Mr. Ho.

* BMO Nesbitt Burns’ Tom MacKinnon to $30 from $26 with an “outperform” rating.

“We remain constructive on CI’s outlook following a solid Q2/21 beat on adjusted EPS/ EBITDA,” he said. “The U.S. RIA acquisition strategy continues to drive incremental earnings. Increased WM run-rate EBITDA guidance, coupled with better-than-expected July net sales, is encouraging. Buyback remains active. We increased H2/21 by 2 per cent and 2022 EPS estimates by 6 per cent, largely reflecting higher WM EBITDA expectations. Target price goes to $30 (from $26) on increased target multiple of 9.0 times (from 8.5 times) on 2022 estimated EPS, with increased target multiple reflecting improving outlook on both flows and incremental value-add from acquisitions.”

* RBC’s Geoffrey Kwan to $30 from $26 with an “outperform” rating.

“The key takeaway for us is that it appears CIX may be closer to returning to positive net sales than we previously expected. Net sales were positive in Q2/21 and were positive in July 2021, which we attribute to very strong industry net sales, significant improvements in overall fund performance vs. peers (based on 1-year quartiles) and new product launches. While it’s too early to conclude CIX is definitely back to positive net sales, it’s clear that CIX has seen a substantial improvement in net sales this year. Furthermore, CIX remains active acquiring RIAs, including another one announced today. Big picture, we think there is still significant valuation upside in the stock and that additional disclosure on the U.S. RIA strategy could provide further valuation upside,” said Mr. Kwan.

* Canaccord Genuity’s Scott Chan to $31 from $28.50 with a “buy” rating.

* Scotia Capital’s Phil Hardie to $27 from $26 with a “sector perform” rating.


RBC Dominion Securities analyst Keith Mackey predicts Pason Systems Inc.’s (PSI-T)“continued demonstration of strong operating leverage to improving industry rig counts could lead to upward estimate revisions.”

Accordingly, also expecting “strengthening fundamentals should serve to restore the company’s premium valuation versus land drillers,” he upgraded his rating for the Calgary-based provider of specialized data management systems for land-based and offshore rigs to “outperform” from “sector perform.”

After the bell on Tuesday, Pason reported adjusted EBITDA of $12.8 million, exceeding Mr. Mackey’s Street-high projection of $10.2 million, while revenue of $35-million, topped his $32-million estimate.

“Due to the company’s strong operating leverage, EBITDA generation has improved at a 70-per-cent incremental margin relative to 3Q20 trough levels, broadly in-line with the company’s 75-per-cent guidance,” the analyst said. “We see continued potential for positive EBITDA revisions as our street-high estimates of $60/94-million in 2021/22 map to 65-per-cent incrementals”

“Pason’s revenue is strongly correlated to North American rig counts. Since 3Q20, we have seen a 70-per-cent increase in rig counts, while the company’s North America revenue has improved 89 per cent. We believe industry fundamentals support higher North American rig counts as U.S. operators seek to offset production declines and replenish DUC inventories while our E&P analysts project Canadian operator cash flows to grow 143 per cent year-over-year in 2022.”

Mr. Mackey maintained a $15 target for Pason shares, exceeding the $12 average.

“We believe Pason should trade at a premium to Canadian land drillers due to its net cash balance sheet, stronger EBITDA margins in 2022 (39 per cent vs. 25 per cent) led by its operating leverage and strengthening ROACE (20 per cent vs. peers at -1 per cent),” he said. “However, we do not believe this is reflected in the company’s current 2022 estimated EV/EBITDA multiple of 5.3 times vs the land driller average at 5.2 times, and Pason’s long-term average of 10.3 times.”


In other analyst actions:

*TD Securities analyst David Kwan downgraded Absolute Software Corp. (ABST-T) to “hold” from “buy” with a US$15 target, down from US$22, while BMO Nesbitt Burns analyst Thanos Moschopoulos cut his Absolute Software Corp. (ABST-T) target to $18.50 from $20, below the $20.06 average, with a “market perform” rating.

“We believe that the stock could be weak today, given the disappointing F2022 Adjusted EBITDA guidance in particular, and with the material decline in margins expected over the next year (at least) and lack of visibility on a related potential re-acceleration in revenue growth (and rebound in margins) in F2023 and beyond, among other things, we believe that the share price could be range-bound,” said Mr. Kwan.

* RBC’s Paul Quinn cut his target for Conifex Timber Inc. (CFF-T) to $3.50 from $4 with an “outperform” rating, while CIBC’s Hamir Patel lowered his target to $2.25 from $2.50, keeping a “neutral” recommendation. The average is $3.20.

“Conifex reported Q2 results that were above our forecast due to better-than-expected pricing,” said Mr. Quinn. “Having come out on the other side of a record lumber rally, Conifex shares are where they were in February and nearly 40 per cent off the peak in May. We continue to see value in Conifex shares, but clearly it will require something dramatic to unlock that value. Share repurchases should create value for continuing shareholders, but we believe a privatization around our target price feels optimal for all involved to ride off into the sunset. We think exploring ‘strategic alternatives’ makes sense once there’s certainty on fiber supply.”

* RBC’s Pammi Bir increased his RioCan Real Estate Investment Trust (REI.UN-T) target by $1 to $24, keeping an “outperform” rating. The average is $23.50.

“Our outlook for REI continues to incrementally improve, post an inline set of Q2 results. Supported by economic re-opening, we expect leasing velocity to build, which coupled with fading bad debts provide a tailwind for stronger NOI advances. We’re particularly encouraged by REI’s capital recycling that collectively serves to reduce its overall risk profile, increasingly recognizes its expanding platform expertise, and monetizes value created from its large mixed-use pipeline. In short, we see drivers to support further valuation recovery,” said Mr. Bir.

* RBC’s Matt Logan raised his European Residential Real Estate Investment Trust (ERE.UN-T) target to $5.50, topping the $5.23 average, from $5.25, while Raymond James’s Brad Sturges increased his target to $5.25 from $5 and National Bank’s Matt Kornack moved his target to $5.55 from $5.20. All three maintained “outperform” ratings.

“European Residential REIT’s Q2 results underscored the structural tailwinds in the Dutch rental market — with a sizeable and growing market-to-market opportunity supporting healthy same-property NOI growth. At the same time, ERES continues to execute on its roll-up opportunity with two tuck-in acquisitions.,” said Mr. Logan.

* Laurentian Bank Securities analyst Nauman Satti raised his Heroux Devtek Inc. (HRX-T) target to $22.50 from $21.50 with a “buy” rating, while Raymond James’ Bryan Fast increased his target to $20.50 from $18.50 with an “outperform” recommendation. The average is $22.58.

“We remain in the early days of a recovery in the aerospace sector, but Héroux is well positioned to capitalize as markets improve,” said Mr. Fast. “With a growing defense segment, offset by a pandemic affected Civil segment, Héroux maintains a healthy balance sheet as debt levels sit at multi-year lows. We upgraded Héroux earlier this year given our confidence in the management team’s ability to navigate the turbulent market while deleveraging and supporting a stabilized cost structure. That view remains unchanged. Although we have seen signs of a recovery in air travel, the recent rise in variants of COVID-19 has affected International movement, with upward momentum in bookings year-to-date falling in June. We do not expect a return to pre-pandemic levels for several years. Our longer term view of Héroux remains, and in the meantime the company can lean on their increasingly important and steady defence segment, which now makes up 70 per cent of revenues.”

* CIBC World Markets analyst Cosmos Chiu raised his Triple Flag Precious Metals Corp. (TFPM-T) target to $19.50 from $18.50 with a “neutral” rating. The average is currently $21.20.

* Mr. Chiu reduced his Pan American Silver Corp. (PAAS-Q, PAAS-T) target to US$42 from US$45 with an “outperformer” rating, while BMO’s Ryan Thompson cut his target to US$39 from US$41 with an “outperform” rating. The average is $41.29.

“5. Despite the weak quarter, full-year production and cost guidance (for both gold and silver) were reaffirmed, and a much stronger H2 is being telegraphed. Confidence in the operations was underscored by a hike in the quarterly dividend to 10 cents (from 7 cents), marking the third dividend hike in the past 18 months,” said Mr. Thompson.

* CIBC’s Mark Jarvi increased his TranAlta Corp. (TA-T) target to $15 from $14.50 with an “outperformer” rating. Other changes include: iA Capital Markets’ Naji Baydoun to $14 from $12.50 with a “buy” rating; BMO’s Ben Pham to $15.50 from $14.50 with an “outperform” rating and National Bank Financial’s Patrick Kenny to $13 from $12 with a “sector perform” rating. The average is $14.40.

* Mr. Jarvi also raised his Hydro One Ltd. (H-T) target to $34 from $33 with an “outperformer” rating. Others making changes include: BMO’s Ben Pham to $33 from $32 with an “outperform” rating; TD Securities’ Linda Ezergailis to $31 from $30 with a “hold” rating and National Bank’s Patrick Kenny to $32 from $31 with a “sector perform” rating. The average is $32.27.

“With the new guidance through 2027, H now has the longest guided time frame for rate base and capex in our utility coverage universe,” said Mr. Pham. “The new 6-per-cent rate base CAGR is comparable to FTS’s and below EMA’s 7.5 per cent; however, we believe EPS growth for H should more closely track rate base growth given a self-funded program, incentive cost sharing and modest non-regulated investments. Given the higher growth expected and extended visibility, we believe a valuation re-rating is warranted (target P/E to 20 times vs. 19.5 times, the upper end of our utility coverage).”

* CIBC’s Jamie Kubik bumped up his Freehold Royalties Ltd. (FRU-T) target by $1 to $13 with an “outperformer” rating, while iA Capital Markets’ Elias Foscolos increased his target to $13 from $12.50 with a “buy” recommendation and Raymond James’ Jeremy McCrea moved his target to $13 from $12.50 with an “outperform” rating. The average is $12.23.

“With another dividend increase and three transactions since quarter-end, Freehold is heavy on the accelerator adding to its highly prospective portfolio both in Canada and the US. With producer capital commitments and growth forecast from all three areas, we are boosting our 2022 production estimate, which drives an increase in EBITDA in 2022,” said Mr. Foscolos.

* CIBC’s Hamir Patel moved his CCL Industries Inc. (CCL.B-T) target to $82 from $81, topping the $79.67 average. He kept an “outperformer” rating.

* CIBC’s Bryce Adams cut his Sierra Metals Inc. (SMT-T) target to $5.25 from $6 with an “outperformer” rating. The average is $4.77.

* CIBC’s Krista Friesen lowered her Martinrea International Inc. (MRE-T) target to $19 from $22, while BMO’s Peter Sklar trimmed his target to $14 from $16 with a “market perform” rating and TD’s Brian Morrison cut his target to $16.50 from $17 with a “buy” recommendation. The average is $18.06.

“We believe it is difficult for auto manufacturers to grow earnings during a period of flat-to-declining vehicle production volumes, which the global auto market is currently experiencing as it is in the later stages of the economic and auto cycles. As a result, we believe it is unlikely that Martinrea will experience meaningful multiple expansion,” said Mr. Sklar.

* Desjardins Securities analyst Frederic Tremblay increased his GDI Integrated Facility Services Inc. (GDI-T) target to $66 from $64 with a “buy” rating, while CIBC World Markets’ John Zamparo raised his target to $59 from $56 with a “neutral” recommendation. The average on the Street is $68.29.

“While the path of the COVID-19 pandemic is uncertain, what remains clear, in our opinion, is GDI’s ability to expertly navigate this dynamic environment and its strong positioning for the expected ‘new normal’ as facilities reopen. In addition, healthy cash flow generation and an all-time low leverage ratio provide ammunition for potential value-creating acquisitions,” said Mr. Tremblay.

* Desjardins Securities’ Kevin Krishnaratne raised his Alithya Group Inc. (ALYA-T) target to $4 from $3.75, exceeding the $3.92 average, with a “hold” rating.

* Credit Suisse analyst Mike Rizvanovic raised his ECN Capital Corp. (ECN-T) target to $12.50 from $11 with an “outperform” rating. Others making changes include: RBC’s Geoffrey Kwan to $12.50 from $12 with an “outperform” rating; BMO’s Tom MacKinnon to $12.50 from $11.50 with an “outperform” rating; Stephens’ Vincent Caintic to $14 from $10 with an “overweight” rating. The average is $11.15.

* TD Securities analyst Vince Valentini increased his AcuityAds Holdings Inc. (AT-T) target to $18.50 from $18 with a “buy” rating. The average is $19.11.

* Canaccord Genuity analyst Yuri Lynk raised his WSP Global Inc. (WSP-T) target to $168 from $155, keeping a “buy” rating, while Scotia Capital’s Mark Neville bumped up his target to $150 from $140 with a “sector perform” recommendation. The average is $150.21.

* Jefferies analyst Owen Bennett raised his Cronos Group Inc. (CRON-T) target to $6.98 from $5.90 with an “underperform” rating. The average is $9.24.

* National Bank Financial analyst Jaeme Gloyn raised his Lifeworks Inc. (LWRK-T) target to $41 from $39, maintaining an “outperform” rating. The average is $40.

* National Bank’s Tal Woolley cut his Extendicare Inc. (EXE-T) target to $8.50 from $9, below the $8.60 average, with a “sector perform” recommendation.

* Credit Suisse analyst Dan Levy cut his Magna International Inc. (MGA-N, MG-T) target to US$115 from US$120 with an “outperform” rating. The average is US$106.20.

“Despite the choppy 2Q we remain bullish on MGA,” he said. “MGA offers opportunity amid an environment of NA inventory rebuild, as it is one of the most heavily

levered suppliers to NA and the Detroit 3 automakers. Moreover, we see opportunity for new CEO Swamy Kotagiri to accelerate MGA’s standing as a blue-chip auto parts supplier leveraged to megatrends. All of this adds up to the case for MGA to see further multiple expansion. While MGA’s EV/EBITDA multiple of 5.8 times is currently ahead of its historical average of 5 times, it is nevertheless below the supplier average of 7.5 times … and we believe continued narrative expansion can drive further multiple expansion.”

* Scotia’s Orest Wowkodaw cut his Hudbay Minerals Ltd. (HBM-T) target by $1 to $12 with a “sector outperform” rating. The average is $13.28.

“HBM reported Q2/21 results that were largely in line with our estimates but well below Street expectations. Overall, we view the update as mixed for the shares. Despite the Q2 miss and our lower estimates, we would be buyers on any undue weakness given that all of the company’s major growth initiatives appear on track, with initial benefits starting in H2/21,” he said.

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