EYE ON EQUITIES

LOBLAW CO. ( L-TSX)

CLOSE $ 115.60, DOWN $ 3.06

National Bank Financial analyst Vishal Shreedhar sees a “challenging but manageable backdrop” for Loblaw Companies Ltd. “We believe that L has benefitted from an ongoing shift to discount (driving market share gains), margin enhancement through drug store (including strong expected OTC trends) and execution against its Retail Excellence strategy,” he said.

Target: Reiterating an “outperform” rating, Mr. Shreedhar raised his target to $125 from $122. Consensus is $123.50.

ALEAFIA HEALTH ( AH-TSX) CLOSE $ 0.07, UNCHANGED

Expressing concern over its shift to prioritizing adult-use sales, Raymond James analyst Rahul Sarugaser lowered his recommendation for Aleafia Health Inc. to “underperform” from “market perform.” “We have trouble seeing how AH will muster the competitive capacity to gain relevant (more than 5-per-cent) market share,” he said.

Target: The analyst cut his target for the Toronto-based company’s shares to 10 cents from 30 cents. Consensus is 23 cents.

MERCER I NTL ( MERC- NASDAQ) CLOSE US$ 13.86, UP $ 1.47

“Positive on pulp,” Credit Suisse analyst Andrew Kuske raised his rating for Vancouver-based Mercer International Inc. to “outperform” from “neutral.” “We believe Mercer International Inc. (MERC) faces many positives that range from commodity prices (pulp, lumber and power), generally favourable FX rates (EUR/USD and USD/CAD) along with a rather attractive valuation,” he said. Target: His target rose to US$19 from US$18.50. Consensus is US$18.40.

PRIMARIS REIT ( PMZ. UN-TSX) CLOSE $ 12.55, UP 16¢

Seeing Primaris Real Estate Investment Trust with “a dominant position in secondary markets that have few alternatives for tenants,” iA Capital Markets analyst Gaurav Mathur initiated coverage with a “buy” rating, expecting it to benefit from a rebound in the investment market and possessing the “strongest” balance sheet in the Canadian retail REIT sector.

Target: Mr. Mathur set a target of $15 per unit. Consensus is $17.25.

ARCH ( ARCH-TSXVENTURE) CLOSE $ 3.26, UP 16¢

Arch Biopartners Inc. possesses “blockbuster potential to establish a new standard of care” for preventing and treating organ damage with its lead drug candidate Metablok, according to iA Capital Markets analyst Chelsea Stellick. Seeing it “diversified across assets and indications,” she initiated coverage of the Toronto-based mid-stage, prerevenue biotechnology company with a “speculative buy” recommendation.

Target: Ms. Stellick, currently the lone equity analyst covering the stock, set a target of $6.