EYE ON EQUITIES

CDN WESTERN BANK ( CWB-TSX) CLOSE $ 32.22, UP 24¢

Seeing it trading “right at book value,” National Bank Financial analyst Gabriel Dechaine raised his rating for Canadian Western Bank to “outperform” from “sector perform,” believing it “offers strong loan growth performance, potential for positive NIM [net interest margin] surprises and a strong track record of credit performance.”

Target: He maintained a $44 target for CWB shares. The consensus target on the Street is $42.29.

CI FINANCIAL ( CIX-TSX) CLOSE $ 14.20, DOWN 77¢

Emphasizing a “more challenging” macro environment that is likely to “constrain sector valuation multiples and reduce earnings visibility,” RBC Dominion Securities analyst Geoffrey Kwan downgraded CI Financial Corp. to “sector perform” from “outperform.” “Given the equity market decline and increased volatility, we think industry net sales are likely to weaken further,” he said. Target: His target dropped to $19 from $26. Consensus is $23.06.

STEP ENERGY SERVICES ( STEP-TSX) CLOSE $ 4.62, UP 44¢

Step Energy Services Ltd. is “increasingly positioned to benefit from a soldout U.S. fracturing market,” said RBC Dominion Securities analyst Keith Mackey, expecting it to “drive more consistent utilization and stronger service pricing.” “Increased FCF generation should also allow the company to de-lever its balance sheet and enable modest multiple expansion,” he added. Target: He upgraded it to “outperform” from “sector perform” with an $8 target, up from $4. Consensus is $6.18.

SHAWCOR ( SCL-TSX) CLOSE $ 6.01, UP 35¢

ATB Capital Markets analyst Tim Monachello thinks Shawcor Ltd.’ s upside now “outweighs” near-term risk, leading him to raise his recommendation to “outperform” from “sector perform.” “It’s becoming clear to us that the underlying fundamentals across SCL’s business lines are, on balance, improving and that progressively stronger results through 2022 are likely to carry its shares higher as well,” he said.

Target: His target rose to $8 from $6.75. Consensus is $7.25.

TERRASCEND ( TER- CN) CLOSE $ 5.00, DOWN 4¢

Echelon Partners analyst Andrew Semple anticipates TerrAscend Corp. will benefit from the introduction of adult-use cannabis sales in New Jersey and see a recovery in its Pennsylvania operations through the remainder of 2022. However, while he thinks its outlook “remains constructive,” he sees upside for its shares as “diminished,” leading him to lowered his recommendation to “hold” from “speculative buy.” Target: Mr. Semple cut his target to $6 from $11. Consensus is $12.17.