STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN
Wednesday, January 11, 2017
Hudson's Bay (HBC-TSX)
Close: $10.16, down $1.50
TD Securities analyst Brian Morrison downgraded Hudson's Bay Co. after it cut its 2016 guidance following a weak holiday season.
On Monday, HBC announced it expects sales of $14.4-billion to $14.6-billion for the year, down from $14.5-billion to $14.9-billion in its previous guidance from November.
Target: Moving his rating to "hold" from "buy," Mr. Morrison cut his target to $13 from $26.
The analyst average is $18.13.
Close: $8.68, down 40¢
The uncertainty surrounding its contract renegotiation with Air Canada creates a significant overhang for Aimia Inc., CIBC World Markets analyst Stephanie Price said. She downgraded the Montreal-based company to "underperformer" from "neutral." "We believe that Air Canada is coming into the negotiation from a position of strength," Ms. Price said.
Target: Her target for the stock remains $8 a share. The average is $9.44.
Brio Gold (BRIO-TSX)
Close: $3.35, unchanged
Brio Gold Inc. provides an "interesting combination of betterthan-average quality and value," according to CIBC World Markets analyst David Haughton. He initiated coverage of the company, a wholly owned subsidiary of Yamana Gold Inc., with a "neutral" rating. Brio commenced trading on the TSX on Dec. 28.
Target: Mr. Haughton set a price target of $5.05 for the stock.
Close: $117.62 (U.S.), up 32¢
Expedia Inc. is an online travel agency "juggernaut," but nearterm risks should not be ignored, Citigroup analyst Mark May said, initiating coverage with a "sell" rating. "As Expedia comps recent acquisitions and other factors come into play ... growth could slow more (and margins could come under more pressure) than consensus currently estimates," he said.
Target: Mr. May set a target of $105 (U.S.). Consensus is $142.33.
Goldman Sachs Group (GS-NYSE)
Close: $242.57 (U.S.), down 32¢
Citigroup analyst Keith Horowitz downgraded both Goldman Sachs Group Inc. to "sell" from "neutral." "GS is currently trading at 1.4 times tangible book value, which represents a 200 basis point gap on return on tangible equity above where expectations are currently," he said.
Target: His target for Goldman stock is $225 (U.S.). The analyst consensus is $232.56.