Good morning
Keep reading to find out why RBC says investors should be buyers of Maxar Technologies.
CANADIAN ANALYSTS’ CALLS
INITIATIONS
Mackie Research starts coverage on this cannabis company that's focused on oils with a "buy" rating and a price target of $4.50 (Canadian), which gives the shares upside of 210%.
Haywood Securities begins coverage with a "buy" and a target of $1.75.
Craig-Hallum Capital starts coverage with a "buy".
RBC is defending the former MacDonald Detwiler, which has been under pressure following a short report. RBC keeps its "outperform" rating, lowers the target to $65 (U.S.) from $73, implying 127% upside, says the downturn is "unwarranted", the shares are "sharply mispriced", and that investors should be "opportunistic buyers".
Acumen Capital Research ups the target to $63.50 from $58.50 and maintains a "buy" after the company bought sweetfrog Premium for $35 million (U.S.)
Desjardins raises the target to $75(Canadian) from $73, lowers its earnings estimates for 2018 and 2019 and maintains a "buy".
RBC ups the target to $56 from $55, implying 34% gains, and maintains a "sector perform" rating. BMO Nesbitt Burns downgrades to "market perform" and lowers the target to $50 from $57.
U.S. ANALYSTS’ CALLS
RBC hikes the target to $39 (U.S.) from $33, suggesting 23% gains, and maintains an "outperform" after the company's earnings results.
RBC is upping the target on one of the most successful large cap stocks of the past 10 years to $170 from $162, which projects a return of 16%, and maintains an "outperform".
Barclays hikes the target to $69 from $58 following earnings results.
Morgan Stanley raises to "overweight".
STOCKS THAT MAY MOVE
is selling itself to China's Zijin Mining for $1.86 billion (Canadian) or $6 a share in cash, a 21% premium to Tuesday's close, after rejecting ofers from Lundin Mining.
has named Craig Bryksa as CEO, is cutting 17% of its workforce, plans to cut debt by $1 billion by the end of 2019, and will divest some assets.
is buying 50% of a light industrial property in Austin, Texas for $53 million (U.S.), along with a strategic partner. It's also buying a 50% stake in an industrial distribution centre in Atlanta, Georgia for $8.35 million.
plans to buy Cameco's 24% interest in the Wheeler River Uranium Project for about $16 million in shares, which would give Denison about 90% ownership of the asset.
The company's majority shareholder LG Bedrock Holdings, along with Foundation Industries Group and Lindsay Goldberg, are selling about 8 million shares in the company.
With files from The Globe and Mail, Reuters and Bloomberg News.
MARKETS
TSX and U.S. equity futures are indicating a sluggish start as uncertainty over NAFTA and U.S. and China trade relations continues.
European stock indices are lower, Asian indices finished down overnight and the MSCI Emerging Market index is lower for a sixth session.
CURRENCIES
The Canadian dollar is floating higher at $75.87 U.S. ahead of a Bank of Canada interest rate announcement where the central bank is not expected to raise its key rate.
Bitcoin is down by 5% to $6,987, according to CoinDesk.
COMMODITIES WHAT WE’RE READING
West Texas Intermediate is lower by 1.3% to $68.97 a barrel after an expected hurricane in the Gulf of Mexico weakened to a Tropical Storm.
Gold is flat at $1,200 an ounce.
DAILY UPDATE
The new Capital Ideas Digest looks at research on a software company with “breakthrough” technology and the potential for the shares to surge 170%.
Correction: FSD Pharma is higher by 100% since we posted our interview on the company and not 200% as stated in the new Digest.
Get 5i Research’s 30-Day Free Trial to access all of their independent, in-depth, conflict-free company reports.
And access Capital Ideas’ premium insights and ideas by signing up as a premium member for just $25 a month.
Capital Ideas TV – Thursdays on YouTube at 7 pm ET, 4 pm PT. Sundays on BNN Bloomberg at 9 pm ET, 6 pm PT.
Capital Ideas Digest – Tuesday’s at 7 pm ET, 4 pm PT.
Capital Ideas Radio – Anytime, anywhere.
Access, insight and ideas.
Have a great weekend!
Mark Bunting | Publisher
Capital Ideas Media