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EYE ON EQUITIES

DAVID LEEDER

SHOPIFY ( SHOP- NYSE)

CLOSE US$ 50.26, UP 99¢

Scotia Capital analyst Kevin Krishnaratne thinks Shopify Inc. should be “a core tech holding given its position as a category leader helping to rewire the retail industry.” However, he initiated coverage with a “sector perform” recommendation, citing its “robust” valuation following recent momentum that has pushed its shares up almost 40 per cent thus far in 2023 and near double September lows.

Target: His target of US$43 per share exceeds the consensus by 41 US cents.

CANADIAN TIRE ( CTC. A-TSX) CLOSE $ 163.97, UP $ 5.77

BMO Nesbitt Burns analyst Peter Sklar is rotating toward consumer staples stocks from their discretionary peers as inflation “abates,” leading to upgrade Canadian Tire Corp. Ltd. to “outperform” from “market perform.” ““The core Canadian Tire banner, which contributes over 50 per cent of retail revenue, has surprisingly been more resilient through downturns than generally expected,” he said.

Target: His target rose to $181 from $160. Consensus is $185.60.

TECK RESOURCES ( TECK - B-TSX)

CLOSE $ 58.19, UP 63¢

Despite its updated three-year guidance prompting a reduction in his net asset value projection, RBC Dominion Securities analyst Sam Crittenden reaffirmed Teck Resources Ltd. as a “a preferred name as they benefit from high commodity prices.”

Target: Calling its new objectives “achievable,” the analyst sees “strong” free cash flow potential moving forward, leading him to raise his target to $64 from $62 with an “outperform” rating. Consensus is $58.92.

PRO REIT ( PRV. UN-TSX) CLOSE $ 6.42, DOWN 8¢

PRO Real Estate Investment

Trust possesses a “defensive asset base with re-rate potential,” according to National Bank Financial analyst Matt Kornack. However, he initiated coverage with a “sector perform” rating based on market volatility and its valuation. “Given the scale of their offering and strong portfolio attributes for the U.S. apartment and Canadian industrial segments it remains a more interesting value play,” he said.

Target: His $6.75 target is below the $7.21 consensus.

TRANSALTA ( TA-TSX) CLOSE $ 12.79, DOWN 13¢

With changes to his new asset value projections and seeing “limited excess return potential,” Credit Suisse analyst Andrew Kuske downgraded TransAlta Corp. to “neutral” from “outperform.” “In our Canadian Infrastructure coverage universe, we continue to favour the Renewable/Power sub-sector for exposure amongst the three distinct areas (i.e. the others being Energy Infrastructure and Utilities),” he said.

Target: His target fell to $15 from $17.50. Consensus is $15.96.

REPORT ON BUSINESS

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2023-02-02T08:00:00.0000000Z

2023-02-02T08:00:00.0000000Z

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