Inside the Market’s roundup of some of today’s key analyst actions
National Bank Financial analyst Cameron Doerksen expects Canada’s aerospace sector to “continue to show strength” in 2024, emphasizing “visibility for growth remains high.”
“2024 should see completion of air travel recovery – still room to go to get back to trendline,” he said. ”According to IATA, global revenue passenger kilometers (RPKs; domestic plus international) in November (the latest reported month) were down just 0.9 per cent compared to the same month in 2019 with domestic RPKs up 6.7 per cent and international down 5.5 per cent. IATA estimates that global RPKs in 2023 will come in 4.8 per cent below 2019 with the total number of scheduled passengers 5.6 per cent lower than 2019. However, IATA projects that global passenger traffic will fully recover to 2019 levels by the end of 2024 with RPKs finishing the year 4.5 per cent ahead of 2019 and the number of scheduled passengers 3.6 per cent higher (4.7 billion versus 4.5 billion in 2019).
Also seeing a “healthy” business jet market and expecting aircraft production rates to climb, Mr. Doerksen said all four of his top picks for the year in his Transportation/Industrials coverage universe are “broadly informed by [his] preference for stocks in the Aerospace sector.”
They are:
* Bombardier Inc. (BBD.B-T) with an “outperform” rating and $94 target. The average on the Street is $77.87.
“We expect Bombardier will deliver higher profitability and free cash flow through 2025 supported by a solid $14.7-billion backlog and generally healthy business jet end-market conditions,” he said. “Management has guided to 2023 free cash flow of $250 million. Looking ahead to 2024, we note that in addition to expected higher EBITDA, FCF will see tailwinds from no residual value guarantee cash payments ($125 million), lower capex and lower interest expense. We forecast 2024 free cash flow of $475 million. For 2025, we forecast FCF of $779 million, which will drive leverage down to a forecasted 2.1x at the end of 2025 versus a forecasted 3.7 times at the end of 2023. If Bombardier can achieve its 2025 EBITDA target of $1.6 billion, based on a conservative 6.5 times EV/EBITDA multiple, we would derive a valuation of $103.00 per share or 93-per-cent upside from the current share price.”
* CAE Inc. (CAE-T) with an “outperform” rating and $36 target. Average: $35.63.
“While the pace of margin improvement in CAE’s Defence sector has been a disappointment (and the main impediment to a higher share price in 2023), we remain very positive on the Civil segment (approximately 75 per cent or more of total company operating income) where results have come in better than expected so far in F2024,” he said. “CAE should enjoy growth in its Civil segment over a multi-year period supported by underlying airline pilot training demand and higher full flight simulator deliveries. We also expect Defence margins to eventually show improvement underpinned by very supportive growth in global defence spending that will drive new order activity.”
* Héroux-Devtek Inc. (HRX-T) with an “outperform” rating and $19 target. Average: $19.10.
“Supply chain issues and inflationary costs will remain ongoing challenges for HRX over the coming quarters, but we see throughput and margins progressively improving over the next two years,” he said. “In the meantime, as we have noted, demand in both the Defence and Civil segments for HRX remains very strong, which is the primary factor supporting our Outperform rating. Valuation is also attractive: on our F2025 forecast (in which we forecast more normalized margins), HRX shares are trading at 7.9 times EV/EBITDA versus the aerospace supplier peer group at 11.6 times next year EV/EBITDA.”
* Exchange Income Corp. (EIF-T) with an “outperform” rating and $62 target. Average: $63.45.
“Exchange Income will see growth through 2024 and into 2025 that is underpinned by new contract wins including the B.C. and Manitoba medevac contracts (ramping through 2024), new surveillance activity, a new contract at PAL Airlines to support Air Canada (ramped in early 2024), as well as expected organic growth in the windows businesses over the next two years supported by growing demand for new housing,” he said. “We therefore have confidence that the company can grow EBITDA from a forecasted $553 million in 2023 to the management guidance range of $600-$635 million with potential upside should the company consummate additional acquisitions.”
Beyond strength in the aerospace industry, Mr. Doerksen highlighted four other themes to watch in the 12 months ahead:
* A “soft” freight market with the potential for inflection later in 2024.
“We remain generally neutral on our freight-related coverage universe as near-term freight volumes may remain relatively soft. A potential inflection point for freight demand may come later in 2024, however,” he said.
* Consumers will “likely to be more stretched.”
“A more challenging backdrop for consumer spending is likely to persist in 2024, although the valuations for consumer-exposed stocks in our coverage universe are already reflecting a softer demand outlook. Although we see good value in Air Canada and BRP Inc., investor sentiment could be a headwind for both stocks,” h said.
* An easing supply chain.
“This should be especially positive for NFI Group and Héroux-Devtek in our coverage universe,” he said.
* Lower interest rates may “boost high dividend payers.”
“If interest rates are cut in 2024, as is widely expected, it could be positive for Exchange Income and Mullen Group,” he said.
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Analysts at Acumen Capital revealed their “Dark Horse” stocks picks for 2024 on Tuesday.
The six on the list are deemed companies that have “either lost a surprising amount of investor conviction or remain under the radar” and “could surprise to the upside” this year.
They are:
* Andrew Peller Ltd. (ADW.A-T) with a “buy” rating and $11 target. The average on the Street is $11.
Analysts: “ADW is returning to historical levels of performance following a period of margin compression. The sale of Port Moody is expected to further delever the balance sheet.”
* Enerflex Ltd. (EFX-T) with a “buy” rating and $12 target. Average: $10.19.
Analysts: “Strong operational execution and financial performance was overshadowed by revised guidance, CFO turnover, and noise from the continued devaluation of the Argentine peso. EFX was down 28 per cent in 2023. We expect smoother sailing in 2024.”
* Information Services Corp. (ISV-T) with a “buy” rating and $31.75 target. Average: $31.38.
Analysts: “Operational results were generally as expected in 2023 with registry transactions moderating from the elevated levels seen during Covid but remaining well ahead of the 10-year average. The key highlight for 2023 was the 20-year MSA extension announced in early July that provides clarity for the Registry division through to 2053. With Saskatchewan poised for continued outperformance driven by a strong labour market and record population growth, we expect a strong year for ISV in 2024.”
* Pollard Banknote Ltd. (PBL-T) with a “buy” rating and $42 target. Average: $37.
Analysts: “PBL had a strong 2023 with the shares returning 68 per cent as their improved financial results drove the strong performance. While the shares are now trading at or near 52-week highs, we think 2024 could be another solid year for the company. Management successfully navigated the inflationary environment through 2022 and 2023, and the margin improvements are now showing up in their financials. We anticipate more of the same for the next several quarters as gross margins recover, and potentially exceed, pre-pandemic levels.”
* Source Energy Services Ltd. (SHLE-T) with a “buy” rating and $15 target. Average: $9.50.
Analysts: “SHLE was one of the top performers in our coverage universe last year (up 92 per cent since we initiated in early-February). We expect strong operational momentum to continue in 2024. FCF will be used to pay down higher interest senior notes reducing overall leverage.”
* Stella-Jones Inc. (SJ-T) with a “buy” rating and $95 target. Average: $88.43.
Analysts: “Stella-Jones had a very strong return in 2023, climbing 59 per cent as the growth in their utility poles along with improved margins in their railway ties segment drove financial results higher. The company’s 2025 goals look very conservative in our opinion, and the broad base of demand for utility poles should continue to push financial results in 2024. We look for potential positive catalysts around further acquisitions and/or updates to their long-term outlook to boost the shares further. In addition, the company remains active on their NCIB as they continue to return excess cash to shareholders.”
In 2023, three of the five companies chosen by the firm outperformed the TSX composite index, which had a total return of 3.4 per cent. They are: Badger Infrastructure Solutions Ltd. (BDGI-T, 49.1 per cent), Firan Technology Group Corp. (FTG-T, 63.9 per cent) and Gamehost Inc. (GH-T, 21.9 per cent). Underperformers were MTY Food Group Inc. (MTY-T, negative 7.3 per cent) and Park Lawn Corp. (PLC-T, negative 29.0 per cent).
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After Cineplex Inc.’s (CGX-T) fourth-quarter box office results came in lower than he anticipated, National Bank Financial analyst Adam Shine expects the impact of last year’s Hollywood strikes to continue to weigh on results well into the current fiscal year.
On Jan. 11, the Toronto-based company reported quarterly box office revenue of $123.8-million, below the analyst’s $127.5-million forecast and just 68 per cent of the result seen in the last pre-pandemic year of 2019.
“The Hollywood strikes, despite getting resolved (writers Sept. 26, actors Nov. 9), impacted Q4 which saw less movies ready to be released and postponements also due to an absence of stars available to promote finished projects,” said Mr. Shine.
“On an LTM [last 12-month] basis to Q3/23, theatre attendance was 71.4 per cent of 2019. It will take time to get a clearer read on 2024 where H1, especially Q1, will be undermined by the effects of the strikes, but a steadier stream of film product ill start to occur in Q2 and strengthen through H2, with 2025 positioned to have the first full release slate since 2019. We assume attendance in 2024 at 68 per cent and 2025 at 78 per cent of 2019. We look for only modest growth in BPP which could do better. We’ve seen year-over-year forecasts for 2024 North American box office of flat to down 10 per cent. We come in at down 5 per cent in 2024 (was up 0.3 per cent) and up 15 per cent in 2025. We expect revenues of $1348-million ex-P1AG [Player One Amusement Group] (was $1264-million) in 2024 and $1537-million in 2025, with Adj. EBITDAaL of $160.5-million (was $193.8-million) in 2024 and $209.9-million in 2025.”
After “modest” reductions to his projections, Mr. Shine is expecting revenue of $359.6-million and adjusted EBITDA of $74.3-million for the fourth quarter. Both are below the Street’s estimates ($379-million and $87-million, respectively).
Keeping an “outperform” recommendation for Cineplex shares, he lowered his target to $12.50 from $13.50, representing a total potential return of 50.8 per cent. The average on the Street is $12.75.
“We expect to see renewed momentum in CGX shares later in H1 this year,” he concluded.
Elsewhere, Canaccord Genuity’s Aravinda Galappatthige nudged his target to $13.75 from $13 with a “buy” rating.
“Cineplex’s alternative programming strategies continue to be effective, allowing the company to outperform the North American box office by 160 basis points in December and 645 basis points in November,” he said. “In fact, for the full year 2023, international content made up 10 per cent of the total box office.
“Looking at the film slate for 2024, we expect to see meaningful box office strength during the back half of the year led by titles like Despicable Me 4, Deadpool 3, Kraven the Hunter, Joker and The Lion King.”
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National Bank Financial analyst Zachary Evershed predicts a “smooth” close to Neighbourly Pharmacy Inc.’s (NBLY-T) definitive agreement to go private with private equity firm Persistence Capital Partners.
Shares of the Toronto-based company jumped 15.6 per cent on Monday following the premarket announcement of the deal. It came after an offer reduction in mid-December but now includes a contingent value right worth an additional 61 cents per share, which Mr. Evershed called “a little sweetener.”
“A second oral valuation from the financial advisor sets the value of NBLY shares at $18.50-$23.50, fixing the mismatch between the takeout price and the initial oral valuation range of $20.50-$25.50,” he said. “The financial advisor also pegs the fair market value of the CVRs at $0.14-$0.34, and judges in its oral fairness opinion that the consideration to be paid to shareholders is fair; On top of the previously disclosed $600 million credit facility debt financing for PCP, the private equity sponsor also got an equity commitment from Brookfield to the tune of $320 million; The transaction has the unanimous approval of the transaction committee and board of directors, and directors and senior officers have entered into support and voting agreements to support the transaction, representing 0.3 per cent of shares at a quick glance.”
Mr. Evershed moved his recommendation for Neighbourly shares to “tender” from “sector perform” and cut his target to $18.50 from $20.50 to reflect the offer. The average on the Street is $20.86.
“We still think shareholders will support the transaction, looking forward to a liquidity event to get the opportunity to redeploy funds,” he said. “As usual, the transaction’s approval will require a majority of the minority, excluding PCP’s 50.05 per cent of shares, for the vote to pass, which will simultaneously satisfy the requirement for the approval of 66.7 per cent of all shareholders. The date of the vote will be confirmed in a circular which will be mailed out in the coming weeks, in advance of which we move our target to the offer price (was $20.50) and change our rating to Tender (was Sector Perform).”
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Scotia Capital analysts think the global oil market will “face near-term pressures from a supply and demand perspective” in the first quarter of 2024.
“We think macro picture will begin to improve by 2Q and reach the high end in 3Q24 before moderating in 4Q24,” they said. “Thus, macro headwinds construe near-term risk to the downside in 1H24 with S&D tailwinds increasing upside risks in the second half of the year. Longer-term, we continue to forecast relatively flat demand growth for OECD countries and expect China’s growth rate to face a noteworthy slowdown.”
In a report released Tuesday, the firm cut its Brent price forecasts to US$81 and US$80 per barrel for 2024 and 2025, respectively, down from previously $85 for both years.
“There is no change to the longer-term outlook; we still think prices will ultimately settle in the $65-$70/bbl range within several years,” the analyst said. “We project $75/bbl Brent for 2026, and $65/bbl for 2027-2028.”
“In our view, the commitment to capital discipline (i.e., limiting volume growth) combined with a positive egress outlook post-TMX, sets the stage for robust Canadian liquids prices. In the near term, however, we expect inventories and CBR volumes to continue to rise until TMX comes online to clear the market in late Q1/early Q2 2024, strengthening liquids differentials. Given the addition of 1,036 mbbl/d of incremental heavy refining capacity in 2023, along with Pemex’s anticipated addition of 340 mbbl/d in Q3/24, coupled with a less intensive U.S. refinery turnaround schedule in 2024, we anticipate strong demand for Canadian oil.”
With those changes, the analysts adjusted their target prices for many energy equities in their coverage universe. For large-cap Canadian stocks, their changes are:
* Cenovus Energy Inc. (CVE-T, “sector outperform”) to $28 from $31. The average is $30.91.
* Ovintiv Inc. (OVV-N/OVV-T, “sector outperform”) to US$50 from US$53. Average: US$58.52.
* Suncor Energy Inc. (SU-T, “sector perform”) to $46 from $47. Average: $51.53.
* Strathcona Resources Ltd. (SCR-T, “sector outperform”) to $32 from $40. Average: $33.64.
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Scotia also updated its price deck for natural gas, lowering its Henry Hub estimate for the year to US$3.60 per one million British thermal units from US$3.75 previously.
“We are capitulating on the potential for cooperative winter ‘23/’24 conditions after a very warm December 2023 and expect weaker NYMEX natural gas prices to prevail over the next several months; however, we expect prices to recover in late 2024 and into 2025,” the firm said. “Our stock selection process continues to favour companies with (1) track records of prudent capital allocation, (2) a high degree of financial flexibility, (3) deep high-return drilling inventories, (4) high cash flow margins, and (5) compelling ‘rate-of-change’ stories.
“Our best ideas are AAV, TOU, and PEY for Canadian natural gas exposure, RRC for U.S. natural gas exposure, TPZ for balanced/oil levered exposure, and LGN for growth premium take-out potential.”
For those stocks, the firm’s target price adjustments were:
* Advantage Energy Ltd. (AAV-T, “sector outperform”) to $16 from $18. The average on the Street is $12.53.
Analysts: “. Most attractive gas-weighted mid-cap name. Top tier Montney asset base; Highest implied return on our valuation formula; clean balance sheet and low cost structure increase flexibility and offer lower risk natural gas exposure; clear line of sight on production (and cash flow) growth; essentially free option on Entropy Inc.”
* Logan Energy Corp. (LGN-X, “sector outperform”) to $1.50 from $1.90. Average: $1.64.
Analysts: “Intriguing suite of early stage and underappreciated Montney assets offers unique opportunity for value growth. Underutilized infrastructure provides convenient opportunity to demonstrate proof of concept and production growth at Simonette. Aligned management team with high degree of insider ownership, impressive technical acumen, and strong track record of creating value.”
* Peyto Exploration & Development Corp. (PEY-T, “sector outperform”) to $20 from $23. Average: $16.07.
Analysts: “Revitalized business model and longer runway following the Repsol acquisition. Strong hedge book and low cost structure protects the free cash flow and dividend proposition in a weak natural gas price environment. Room for the multiple to rerate upward if PEY can deliver the guided results from the new assets.”
* Range Resources Corp. (RRC-N, “sector outperform”) to US$40 from US$43. Average: US$35.13.
Analysts: “Highest quality producer in the U.S. natural gas space. Best screening stock on free cash flow durability, balance sheet strength, and valuation stability across a wide range of commodity price scenarios. Pending shareholder returns inflection point. The best upstream capital efficiencies in the group. Diversified commodity (more than 30-per-cent liquids) and gas marketing (less than 10-per-cent floating Appalachian price exposure) mixes.”
* Topaz Energy Corp. (TPZ-T, “sector outperform”) to $30 from $32. Average: $27.12.
Analysts: “Premium royalty income portfolio touching the best upstream plays in Western Canada (TOU’s Montney, Clearwater heavy oil, Charlie Lake light oil) and high-quality infrastructure backed by long-term take-or-pay agreements. Upstream exposure to AECO and WCS prices provides a unique way to play the upcoming WCSB pipeline completion / export growth theme. Track record of strong dividend growth, with a low current payout ratio paving the way for further growth. Positioned to capitalize on possible upstream and midstream opportunities as M&A heats up.”
* Tourmaline Oil Corp. (TOU-T, “sector outperform”) to $90 from $100. Average: $80.72.
Analysts: “Highest quality natural gas producer in North America; best-in-class Montney asset base, with strong complimentary Deep Basin assets; clear line of sight on high-return growth from Aitken/Conroy Montney assets coinciding with LNG Canada creating a gap in the western Canadian natural gas market. 20-per-cent exposure to premium gas markets (California and JKM). Pristine balance sheet and commitment to shareholder returns.”
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In a research report previewing the fourth quarter of 2023 as well as 2024 in the Canadian energy sector, analysts at CIBC World Markets made a series of target price reductions to stocks in their coverage universe on Tuesday.
“Energy stocks performed modestly well in 2023, beating the S&P/TSX Composite Index return by 1 per cent despite recessionary concerns impacting energy pricing,” they said. “Sector balance sheets have been repaired, and are in a good position to navigate weaker commodity prices through 2024. Fears of a recession have kept a ceiling on oil prices, despite the risk of supply interruptions resulting from increased tensions in the Middle East, and continued sanctions against Russia. We expect natural gas markets are likely to remain subdued in 2024, particularly in the first half, owing to excess supply in North America and Europe, and we believe that a supply response is required to better position the market for 2025.
“As a result of continued weakness in gas pricing, we expect trading valuations for gas stocks could expand in 2024, driven by improving demand fundamentals in 2025. We hold a stronger bias for liquids over natural gas for 2024. Our top ideas for 2024 include ARX, CVE, and SU for large-cap E&Ps and KEL and LGN for small‑cap E&Ps.”
Their changes included:
- Arc Resources Ltd. (ARX-T, “outperformer”) to $26 from $28. The average on the Street is $27.14.
- Baytex Energy Corp. (BTE-T, “neutral”) to $6 from $8. Average: $7.68.
- Birchliff Energy Ltd. (BIR-T, “neutral”) to $6.50 from $8. Average: $8.71.
- Cardinal Energy Ltd. (CJ-T, “neutral”) to $8 from $9. Average: $8.83.
- Cenovus Energy Inc. (CVE-T, “outperformer”) to $30 from $42. Average: $30.91.
- Crescent Point Energy Corp. (CPG-T, “outperformer”) to $14 from $15. Average: $13.81.
- Enerflex Ltd. (EFX-T, “neutral”) to $7.25 from $8.50. Average: $10.19.
- Enerplus Corp. (ERF-N/ERF-T, “outperformer”) to US$19 from US$23. Average: US$20.80.
- Ensign Energy Services Inc. (ESI-T, “neutral”) to $3.25 from $4. Average: $3.89.
- Freehold Royalties Ltd. (FRU-T, “neutral”) to $16 from $16.75. Average: $18.25.
- Kelt Exploration Ltd. (KEL-T, “outperformer”) to $8 from $9. Average: $8.77.
- Lucero Energy Corp. (LOU-X, “neutral”) to 70 cents from 80 cents. Average: 89 cents.
- Lundin Mining Corp. (LUN-T, “neutral”) to $12 from $13. Average: $11.96.
- MEG Energy Corp. (MEG-T, “neutral”) to $26 from $27. Average: $30.35.
- Paramount Resources Ltd. (POU-T, “neutral”) to $32.50 from $40. Average: $38.28.
- PrairieSky Royalty Ltd. (PSK-T, “outperformer”) to $27.50 from $29.50. Average: $26.44.
- Strathcona Resources Ltd. (SCR-T, “outperformer”) to $35 from $40. Average: $33.64.
- Suncor Energy Inc. (SU-T, “outperformer”) to $58 from $61. Average: $51.53.
- Tamarack Valley Energy Ltd. (TVE-T, “outperformer”) to $4.50 from $5.25. Average: $5.63.
- Topaz Energy Corp. (TPZ-T, “outperformer”) to $24 from $26.50. Average: $27.27.
- Tourmaline Oil Corp. (TOU-T, “outperformer”) to $72.50 from $82.50. Average: $81.16.
- Vermilion Energy Inc. (VET-T, “neutral”) to $22 from $26. Average: $24.54.
- Whitecap Resources Inc. (WCP-T, “outperformer”) to $14 from $15. Average: $13.57.
Conversely, analyst Jamie Kubik raised his target Secure Energy Services Inc. (SES-T) to $10.50 from $9.50. with a “neutral” recommendation. The average is $11.
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CIBC World Markets analyst Sumayya Syed initiated coverage of a trio of real estate investment trusts on Tuesday.
They are:
* PRO REIT (PRV.UN-T) with an “outperformer” rating and $6.25 target. The average on the Street is $5.86.
“We believe the REIT’s progress towards becoming an industrial pure-play is underappreciated and units still trade at the diversified holdco discount,” she said. “Even as repositioning has slowed given the quiet transaction environment, we see attractive growth in its Eastern Canada industrial markets. We believe valuation can improve as exposure to office and retail declines. At 20 per cent below NAV and an 8.7-per-cent yield, valuation is attractive. Experienced and internalized management, and little to no development or refinancing risk, round out our positive view.”
* Nexus Industrial REIT (NXR.UN-T) with an “outperformer” rating and $10.50 target. The average is $9.13.
“Nexus is among a limited set of opportunities for investors to gain pure-play exposure to Canadian industrial fundamentals,” she said. “As the heavy lifting of repositioning from a diversified REIT is complete, the organic-growth outlook will, in our view, benefit as below-market leases mature over the next several years. We also see runway for acquisitive growth from management’s proven ability to source deals via industry relationships, and in relatively low competition markets. Units are trading at a 22-per-cent NAV discount vs. 10 per cent for peers, and we view valuation as attractive.”
* BTB REIT (BTB.UN-T) with a “neutral” rating and $3.25 target. The average is $3.40.
“Our outlook is of modest growth reflecting the stable retail and industrial segments, offset by the large office footprint,” she said. “While BTB’s focus is on suburban office, which has proven more resilient than downtown, we believe recovery will take a long time. The industrial segment has grown nicely through acquisitions; however, we foresee muted acquisitive growth given above-average leverage and a high cost of capital. BTB units could appeal to investors seeking broad exposure to multiple asset classes. Further, at a 10-per-cent yield and 80-per-cent payout, units could present an opportunity for income-oriented investors, in particular as the commercial REIT sector average yield is 5.8 per cent. Improving sentiment for the office asset class and a reduction in leverage would be catalysts for unit price performance.”
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In other analyst actions:
* ATB Capital Markets’ Chris Murray raised his Cargojet Inc. (CJT-T) to $155 from $125 with an “outperform” rating following Monday’s release of its 2024 and 2025 capital expenditure guidance. Elsewhere, RBC’s Walter Spracklin trimmed his target to $184 from $187 with an “outperform” recommendation, while BMO’s Fadi Chamoun bumped his target to $110 from $100 with a “market perform” rating. The average is $141.08.
“CJT announced a further refining of its growth strategy,” said Mr. Spracklin. “Our view is that this will result in a major (and immediate) inflection to FCF and (more importantly) it represents what we believe is a substantial positive shift in investor sentiment away from the (exited) international strategy and refocus on domestic Cdn overnight. Shareholder returns are immediate and have in fact already begun (dividend hike + substantial share buyback). We are calling for a near-term and significant valuation re-rate, with our conviction evidenced in our 50-per-cent implied return to our price target. Reiterate CJT as our top idea across our coverage universe.”
* BMO’s Jackie Przybylowski lowered her First Quantum Minerals Ltd. (FM-T) target to $17 from $18 with an “outperform” rating. The average is $19.49.
“First Quantum’s Q4/23 production update and forward-looking guidance is not a resolution to the ongoing challenges faced by the company, but it does continue to highlight the numerous options for cash preservation or opportunities to raise capital,” she said. “This release doesn’t have all the answers yet - and that could be modestly disappointing to the market - but we continue to believe that First Quantum will manage through this difficult situation.”
* In response to Monday’s release of its 2023 production results and 2024 guidance, CIBC’s Bryce Adams cut his Lundin Mining Corp. (LUN-T) target to $12 from $13 with a “neutral” rating. Others making changes include: National Bank’s Shane Nagle to $12.50 from $13 with an “outperform” rating and Canaccord Genuity’s Dalton Baretto to $11 from $11.50 with a “hold” rating. The average is $11.96.
* MoffettNathanson’s Michael Morton raised his Shopify Inc. (SHOP-N, SHOP-T) target to US$82 from US$79 with a “buy” rating. The average is US$73.16.
* JP Morgan’s Arun Jayaram cut his Vermilion Energy Inc. (VET-T) target by $1 to $23, below the $24.54 average, with a “buy” recommendation.
David Leeder