YELLOW PAGES INCOME FUND: (YLO.UN-TSX)
Yesterday's close
$8.57, down 28¢
Yellow Pages Income Fund has competitive advantages in Canada, unlike international directories that have seen their values decline, Scotia Capital analyst Paul Steep says. The key differences cited include exclusive ownership of the Yellow Pages trademark, less competitive intensity and an active online business.
Upside: The analyst rates the units of Yellow Pages as "sector outperform," with a price target of $11.
SHAW COMMUNICATIONS: (SJR.B-TSX)
Yesterday's close
$21.05, up 23¢
Haywood Securities analyst Rob Goff says Shaw Communications Inc. will benefit from its wireless venture - a contrary view to that of other analysts. Given the recent weakness in Shaw's stock price, he recommends investors buy shares.
Upside: Haywood rates the shares "sector outperform," with a price target of $27. The shares are reaching a low that prompted the Shaw family to buy one million shares in January, Mr. Goff said.
CASCADES: (CAS-TSX)
Yesterday's close
$6.43, down 24¢
Cascades Inc. has closed its Toronto recycled boxboard mill because of high labour, fibre and energy costs, Desjardins Securities' Pierre Lacroix says. The mill represents 7 per cent of the total North American coated boxboard capacity.
Upside: The shares are rated "buy," with a price target of $10.75. The mill shutdown could enable higher boxboard prices, and reduce the demand for recycled paper, the analyst said.
SCHNITZER STEEL INDUSTRIES: (SCHN-NASDAQ)
Yesterday's close
$95.31 U.S., down $19.25
Schnitzer Steel Industries Inc. is benefiting from a climb in the already high prices for scrap steel, say Goldman Sachs analysts, who raised their fiscal 2009 forecast for Schnitzer share profit to $8.15 (U.S.) from $7.75. They increased their target for Schnitzer to $87 from $82.
Downside: Strong scrap steel fundamentals are more than priced into the shares, and Goldman Sachs reiterated its "sell" rating.
ALLIED CAPITAL: (ALD-NYSE)
Yesterday's close
$13.17 U.S., up 11¢
Allied Capital Corp. is a business development company that invests in mezzanine debt and equity in mid-sized firms. Allied "may have to slow its investment growth as the current level of its share price is prohibitive to raising new capital and finding ... investment opportunities," Citigroup analyst Bradley Ball says.
Downside: He rates Allied Capital shares as "hold," and has cut his price target to $15 (U.S.) from $24.
SOURCE: DATASTREAM