Canadian analysts initiate Facebook coverage with split targets

The debut of Facebook Inc.’s coverage by Canadian analysts shows a polarized outlook on the social media site.

BMO Capital Markets launched its analyst coverage of Facebook Inc. with an underperform rating and $25 target share price, close to the …

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When will gold stocks catch up to bullion?

What will it take for gold stocks to finally catch up to bullion? According to a new report from CIBC World Markets, the price of the yellow metal needs to rise faster than cost inflation for miners.

Investors continue to …

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Who is ready for a downturn?

The continued weakness in global markets as a result of slowing Chinese growth and fears that Greece will leave the euro zone, has investors wondering which countries are best prepared for a downturn.

Fixed income strategists at Bank of America …

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Rare earth case may be to blame for euro weakness

With all indicators pointing to a renewed interest in risk assets overnight as equity futures rose, high-beta currencies are up, and oil and commodity currencies gaining, why was the euro down? The reason appears to lie less in what’s happening with the euro zone debt crisis and more with the European Union joining the United States and Japan in their rare earth case against China at the WTO. Related China’s rare earth monopoly challenged “China has hinted that it would […]

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Fibrek up 16% on friendly takeover deal

Shares of Montreal kraft pulp producer Fibrek Inc. are up sharply in early trading on the Toronto Stock Exchange Friday, after the company said it has agreed to a friendly takeover deal with Mercer International Inc. worth as much as $170-million. At 10:05 ET, shares of Fibrek were up almost 16% to $1.31, an 18¢ jump. The share price lines up with the all-cash option in the Mercer offer of $1.30 for each Fibrek share. Fibrek shareholders also have the option of […]

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Shoppers downgraded as independent pharmacies stay afloat

Score one for the little guy. Keith Howlett, analyst with Desjardins Capital Markets, has lowered his rating on Shoppers Drug Mart Corp. to hold from buy and cut his price target to $42 from $45 due to a lack of “industry consolidation” expected in the wake of controversial drug reforms recently introduced in Ontario. In other words, enough independent pharmacists are keeping their heads above water that it is keeping retail giants like Shoppers from dominating the industry as much […]

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Housing stock rally ‘premature’

A stabilization in U.S. housing starts, coupled with growing confidence in the economy and speculation that the Fed will pursue a new round of quantitative easing focused on mortgage-backed securities, has helped drive shares of some housing-related stocks up 50% or more from their October lows. However, despite expectations that there is a strong housing rebound in the works, a significant oversupply in the U.S. market is prompting Macquarie Capital Markets to recommend selling into this rally. Analyst Stephen Harris […]

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Housing stock rally ‘premature’

A stabilization in U.S. housing starts, coupled with growing confidence in the economy and speculation that the Fed will pursue a new round of quantitative easing focused on mortgage-backed securities, has helped drive shares of some housing-related stocks up 50% or more from their October lows.

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Canadian dollar proving less sensitive to risk

As private investors join central banks in diversifying away from the U.S. dollar and euro, the Canadian dollar appears to be growing less sensitive to risk aversion. Now that Canada has cemented its role as a safe haven during periods of economic weakness, with the fourth largest AAA-rated bond market globally, relatively new foreign inflows have strengthened the loonie relative to the U.S. dollar. As a result, the greenback is expected to rise less than it has previously during periods […]

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Canadian dollar proving less sensitive to risk

As private investors join central banks in diversifying away from the U.S. dollar and euro, the Canadian dollar appears to be growing less sensitive to risk aversion.

Read more »