EYE ON EQUITIES

AIR CANADA ( AC-TSX) CLOSE $ 22.09, UP 2¢

While the rebound in travel stalled with the emergence and spread of the Omicron variant, National Bank Financial analyst Cameron Doerksen sees several reasons to be optimistic about Canadian airlines moving forward. However, he did warn of a series of emerging headwinds facing the sector, including “much” higher fuel prices and increased competition.

Target: Keeping an “outperform” rating, he trimmed his Air Canada target to $28 from $30. The consensus on the Street is $29.63.

ENERFLEX ( EFX-TSX) CLOSE $ 6.71, UP 14¢

ATB Capital Markets analyst Tim Monachello sees Enerflex Ltd. as “a compelling investment opportunity despite mid-term risks and uncertainties” following its allstock acquisition of Exterran Corp. “While EFX shares have not responded positively to the announcement (down roughly 17 per cent), we believe the combination offers strong strategic merit and an attractive value proposition,” he said.

Target: His target rose to $12.50 from $12 with an “outperform” rating. Consensus is $11.

CENOVUS ENERGY ( CVE-TSX) CLOSE $ 18.46, UP 2¢

Citi analyst Prashant Rao lowered his financial expectations for Cenovus Energy Inc. to account for the firm’s view for “flat oil prices retracing meaningfully lower as 2022 progresses.” He’s now projecting fourth-quarter 2021 funds from operations per share of $1.07, down from $1.29 but in line with the Street’s forecast.

Target: Mr. Rao did raise his target for Cenovus shares to $21 from $17, maintaining a “buy” rating. Consensus is $20.95.

ALTAGAS ( ALA-TSX) CLOSE $ 26.04, UP 30¢

Scotia Capital analyst Robert Hope thinks the “highly visible and resilient growth profile” for Canadian utility and renewable companies “could be attractive to investors longer term as well as during periods of market uncertainty as we are experiencing now.”

Target: He raised his target for shares of AltaGas Ltd., his favourite utility stock, to $31 from $30, saying: “We see AltaGas as having the strongest growth profile of the utilities.” Consensus is $30.77.

AGF MANAGEMENT ( AGF. B-TSX) CLOSE $ 7.26, UP 15¢

Following Wednesday’s release of mixed fourth-quarter 2021 results, Desjardins Securities’ Gary Ho called AGF Management Ltd. a “free-cash-flowing machine.” “We favour AGF’s setup for the remainder of 2022 given several catalysts,” he said.

Target: Despite that optimism, Mr. Ho reduced his financial estimates to reflect the recent decline in equity markets, leading him to cut his target to $10.50 from $10.75 with a “buy” recommendation. Consensus is $9.