STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN
General Electric (GE-NYSE) Close: $17.90 (U.S.), down $1.12
General Electric Co.’s turnaround is likely to be much more protracted than previously anticipated, according to RBC Dominion Securities analyst Deane Dray. He believes the company’s plan fell short of the “sweeping” reset of its business model and portfolio that may had anticipated, leading him to downgrade it to “sector perform” from “outperform.”
Target: Mr. Dray lowered his target to $20 (U.S.) from $25. Consensus is $22.80.
Franco-Nevada (FNV-TSX) Close: $107.85, up $1.68
Franco-Nevada Corp.’s growth profile is being to show signs of contribution, according to RBC Dominion Securities analyst Stephen Walker. “Our earnings per share/cash flow per share and free cash flow estimates for Franco-Nevada grow progressively over the next three years as the company benefits from forecast precious metal and O&G revenue growth,” he said.
Target: With an “outperform” rating, his target rose to $116 from $110. Consensus is $112.07.
MedReleaf (LEAF-TSX) Close: $16.61, down $1.64
Although MedReleaf Corp. reported second-quarter 2018 revenue and adjusted EBITDA that fell below his expectations, Canaccord Genuity analyst Michael Bottomley hiked his target based on recreational de-risking. “We expect financial results in the back half of the fiscal year to begin to reaccelerate from the rather flat top line as of late,” he said.
Target: With a “speculative buy” rating, his target jumped to $20 from $15. Consensus is $16.33.
Premier Gold Mines (PG-TSX) Close: $3.63, down 8¢
Although Premier Gold Mines Ltd. had a “solid” third-quarter beat, tougher times lie ahead, Beacon Securities Ltd. analyst Michael Curran said, downgrading it to “hold” from “buy.” “We think PG shares will struggle to deliver positive newsflow in 2018 as it advances several projects towards production decisions over the next few years,” he said.
Target: His target fell to $4.35 from $5. Consensus is $4.48.
Coca-Cola (KO-NYSE) Close: $47.43, up 71¢
Wells Fargo Securities analyst Bonnie Herzog raised her rating for
Coca-Cola Co. to “outperform” from “market perform” ahead of its annual investor day on Thursday. “We continue to believe Coca-Cola’s best-in-class distribution and strong brand portfolio will allow it to retain its premium valuation,” Ms. Herzog said. Target: Her target rose to $51 (U.S.) from $45. Consensus is $47.71.