A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013. Apple Inc is expected to introduce a cheaper version of the iPhone on Tuesday, bringing one of the industry's costliest smartphones within reach of the masses in poorer emerging markets. The world's most valuable technology company, which many expect to unveil an iPhone 5C in several colors alongside the latest high-end iPhone 5S, is trying to beat back rivals like Samsung Electronics Co Ltd and Huawei Technologies Co Ltd in markets like India and China, where it is fast losing ground.Reuters
Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day. For breaking analyst actions prior to market open every day, read our Before the Bell morning report.
Anticipating that institutional investors will buy more of its shares in 2014, UBS analyst Steven Milunovich upgraded Apple Inc. to "buy" from "neutral" while raising his price target to $650 (U.S.) from $540.
He thinks institutional ownership could rise from the current 64 per cent to near 73 per cent, and that the stock's current 15 per cent to 20 per cent price-to-earnings discount to other large-cap tech stocks could narrow, in anticipation of China Mobile distributing its iPhone products.
"We think one or more of the following could boost the stock in the next year: (1) the gross margin should be flat to up with iPad margins stabilizing and warranty accruals less of an incremental; (2) the imminent support of China Mobile along with (Japanese mobile operator) NTT DoCoMo could aid the seasonally weak summer quarters; (3) the hire of Angela Ahrendts (as new retail head) may provide an inspirational face to the company; and (4) new products should begin to renew faith in innovation, including wearables and iBeacon," Mr. Milunovich said in a research note.
The average price target among analysts is $579.29, according to Thomson Reuters.
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After an impressive run for Aecon Group Inc. stock this year, Raymond James analyst Frederic Bastien downgraded the construction company to "outperform" from "strong buy" based on valuation, while raising his price target to $18 (Canadian) from $16.
"We still view the stock as one of the most attractive ways to profit from the growth of Canada's infrastructure and the development of its vast natural resources. We advise investors to position themselves accordingly," he said.
Shares have risen 44 per cent so far in 2013, with the company announcing better-than-expected third-quarter results. The company, along with a joint venture partner, will also be responsible for constructing a portion of the upcoming Eglinton Crosstown Light Rail Transit project in Toronto.
"To us these successes not only speak to Aecon's strong capabilities in civil construction, but also solidify the firm's status as a sought-after partner," he said.
The average target among analysts is $16.73, according to Thomson Reuters.
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Goldman Sachs analyst Drew Borst downgraded Imax Corp. to "neutral" from "buy," believing that the stock is fully valued when considering the company's growth potential.
While maintaining a price target of $30 (U.S.), he reduced his estimated 2014 adjusted EBITDA forecasts by 8 per cent on lower box office receipt expectations.
"While we still believe in IMAX's long-term growth potential, in our view it is captured in IMAX's current 15x EV/EBITDA (NTM) multiple, which is a 21 per cent premium to its trailing 6-year median," Mr. Borst was quoted by StreetInsider as saying.
The average price target among analysts is $30.94, according to Thomson Reuters.
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Stonecap Securities downgraded Aurcana Corp. to "underperform" from "sector perform" and slashed its price target on concern that the company is in "financial jeopardy."
The company is facing a number of production difficulties at its Shafter silver mine in Texas at a time of weak silver prices, noted analyst Christos Doulis. It's putting Aurcana in a dangerous position as its $50-million credit facility is now coming due. He believes the facility needs to be refinanced.
"While Aurcana offers investors strong leverage to silver and upside in the shares to our target price, such upside is predicated on successfully bringing the Shafter project into commercial production. Given Aurcana's poor track record at Shafter to date we prefer to take a cautious approach at this time," Mr. Doulis said in a research note.
He cut his price target to $1.75 (Canadian) from $2.50. The average price target among analysts is $2.17, according to Thomson Reuters.
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Credit Suisse analyst Edward Westlake downgraded Cobalt International Energy Inc. to "neutral" from "outperform" and aggressively slashed his target to $26 (U.S.) from $40 as shares plunged on worries about the economic viability of the company's offshore Angola operations.
The oil and gas company's stock dropped 17 per cent following an announcement regarding the discovery of substantial amounts of natural gas at its Lontra well. A production sharing agreement does not allow foreign investors to market natural gas, nor does the country currently have the infrastructure necessary to export the fuel.
The stock has also experienced a 60 per cent decline since its high in August following reports that the company had failed to find oil or natural gas wells in the Gulf of Mexico.
"The pace of value accretion … is more consistent with a neutral stance vs. the risks and in light of competing investments elsewhere in energy," he said.
The average target among analysts is $36.16, according to Thomson Reuters.
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UBS cut its 2014 gold price forecast to $1,200 an ounce, from $1,325 an ounce. It now sees silver average $20.50, down from $25.
"With the market now increasingly refocusing on QE-tapering, gold has resumed its downwardtrend," UBS said in a research note. "Together with weak underlying sentiment, as evidenced by the disappointing priceperformance even in the face of bad news such as tensions in Syria and the US governmentshutdown and given constrained Indian demand under the current regulatory framework, UBSbelieves the recent downward pressure will continue and sees a lack of supporting catalysts."
As a result:
UBS cut its price target on Agnico-Eagle Mines to $28 (U.S.) from $33 and maintained a "neutral" rating.
UBS cut its price target on Franco-Nevada to $47 (Canadian) from $51 but upgraded its rating to "buy" from "neutral."
UBS cut its price target on Barrick Gold to $17 (U.S.) from $18.50 and maintained a "neutral" rating.
UBS cut its price target on Centerra Gold to $6.50 (Canadian) from $8 but upgraded its rating to "buy" from "neutral."
UBS cut its price target on Goldcorp to $26 (U.S.) from $31.50 and maintained a "buy" rating.
UBS cut its price target on Newmont Mining to $25 (U.S.) from $29 and maintained a "neutral" rating.
UBS cut its price target on Silver Wheaton to $25 (U.S.) from $28 and maintained a "buy" rating.
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In other analyst actions:
Canaccord Genuity cut its price target on Atacama Pacific Gold to $1.60 (Canadian) from $2 and maintained a "speculative buy" rating.
UBS raised its price target on Valeant Pharmaceuticals International to $125 (U.S.) from $115 and maintained a "buy" rating.
UBS raised its price target on Forest Labs to $57 (U.S.) from $47 and maintained a "neutral" rating.
Canaccord Genuity raised its price target on Deckers Outdoor to $91 (U.S.) from $81 and reiterated a "buy" rating.
B. Riley downgraded Walt Disney to "neutral" from "buy" and maintained a $73 (U.S.) price target.
Global Hunter Securities upgraded Pioneer Natural Resources to "buy" from "neutral" and raised its price target to $235 (U.S.) from $207.
TD Securities raised its price target on Enerplus to $23 (Canadian) from $20 and maintained a "buy" rating.
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For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities
Darcy Keith