Maxar “Sharply Mispriced” with 127% Upside
    Good morning

    Keep reading to find out why RBC says investors should be buyers of Maxar Technologies.

    CANADIAN ANALYSTS’ CALLS

    INITIATIONS

    Valens Groworks (CSE:VGW)

    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%.

    Steppe Gold (TSX:STGO)

    Haywood Securities begins coverage with a "buy" and a target of $1.75.

    Mogo Finance Technology (TSX:MOGO)

    Craig-Hallum Capital starts coverage with a "buy".

    Maxar Technologies (TSX:MAXR;NYSE:MAXR)

    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".

    MTY Food Group (TSX:MTY)

    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.)

    SNC-Lavalin (TSX:SNC)

    Desjardins raises the target to $75(Canadian) from $73, lowers its earnings estimates for 2018 and 2019 and maintains a "buy".

    Laurentian Bank (TSX:LB)

    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

    Smartsheet (NYSE:SMAR)

    RBC hikes the target to $39 (U.S.) from $33, suggesting 23% gains, and maintains an "outperform" after the company's earnings results.

    Visa (NYSE:V)

    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".

    Coupa Software (NASDAQ:COUP)

    Barclays hikes the target to $69 from $58 following earnings results.

    Anthem (NYSE:ANTM)

    Morgan Stanley raises to "overweight".

    STOCKS THAT MAY MOVE

    Nevsun Resources (TSX:NSU)

    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.

    Crescent Point Energy (TSX:CPG)

    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.

    Agellan Commercial REIT (TSX:ACR.UN)

    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.

    Denison Mines (TSX:DML;NYSE:DNN)

    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.

    Stelco Holdings (TSX:STLC)

    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