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EYE ON EQUITIES

DAVID LEEDER

BANK OF MONTREAL ( BMO-TSX) CLOSE $ 117.14, DOWN 67¢

Barclays analyst John Aiken expects credit and capital markets to drive better-than-expected second-quarter results for Canadian banks. “Positive macro fundamentals could improve the banks’ credit loss scenarios, while record equity markets will likely buoy underwriting and trading activity,” said Mr. Aiken, who raised his earnings expectations for the sector.

Target: He increased his target for Bank of Montreal shares to $112 from $107 with an “underweight” rating. The consensus target is $119.67.

NUVEI ( NVEI-TSX) CLOSE $ 83.45, UP $ 2.04

Citi analyst Ashwin Shirvaikar thinks Nuvei Corp.’s upside is not properly reflected in the Street’s expectations. “Nuvei is clearly executing well, our perception of risk/reward skews to being cautious partly given the lack of track record, given the business has evolved rapidly by rolling up assets in several riskier areas,” he said.

Target: His target rose to US$74 from US$68 with a “neutral” rating. Consensus is US$82.94.

ORGANIGRAM ( OGI-TSX) CLOSE $ 3.18, UP 15¢

With its share price now below his target, CIBC World Markets analyst John Zamparo upgraded Organigram Holdings Inc. to “neutral” from “underperformer.” “We are encouraged by OGI’s recent spike in retail sales, but are cautious on assuming any meaningful margin expansion,” Mr. Zamparo said.

Target: He kept a $3.25 target, which falls below the $3.87 consensus.

RECIPE UNLIMITED ( RECP-TSX) CLOSE $ 21.34, UP 56¢

BMO Nesbitt Burns analyst Peter Sklar thinks the first half of 2021 could be the trough for the Canadian restaurant industry with a “swift” recovery following that could lead 2022 sales to reach the prepandemic levels. That view led Mr. Sklar to upgrade Recipe Unlimited Corp. to “outperform” from a “market perform” recommendation.

Target: His target jumped to $31 from $21. Consensus is $24.38.

THE LION ELECTRIC ( LEV- NYSE) CLOSE US$ 15.78, DOWN US$ 1.53

Montreal-based The Lion Electric Company is “ideally positioned to lead electric transition in the medium- and heavy-duty vehicle market,” according to Benoit Poirier of Desjardins Securities. Seeing it sitting in a strong strategic position to capture a large portion of a “large and growing” addressable market and possessing “significant” growth potential, he initiated coverage with a “buy” rating.

Target: He set a US$26 target. Consensus unavailable.

REPORT ON BUSINESS

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2021-05-12T07:00:00.0000000Z

2021-05-12T07:00:00.0000000Z

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