VAT (TVA.B, $8.28): low scores
TD Securities reiterates a recommendation to “hold”.
Vince Valentini noted that declines in advertising revenue of 7.6% to the conventional TV and 8.5% in magazines are far from encouraging. He believes, however, that the evaluation of the title already reflects these setbacks.
The analyst said he was not optimistic about an eventual return to growth for traditional assets, but he believes the title could provide value if the company is able to meet the expectations he has for TVA Sports in the coming years. In the quarter, advertising revenues sports channel rose 71% and the number of subscribers is now 1.8 million, up 104%.
Mr. Valentini believes that there is no rush to take position in the stock, but the potential for TVA Sports justifies the maintaining recommendation.
Anticipation for 2014 is reduced to a loss of $1.06 per share. Anticipation for 2015 leads a profit of $0.33 to $0.26 per share. The 2016 slides from $0.82 to $0.73 per share. The target is $9.
Scotiabank (BNS, $68.78): lower target
BMO Capital Markets reiterated a recommendation to “outperform”.
The institution announced a series of charges and job cuts that should have a negative impact of $451 million ($0.28 per share) in the fourth quarter earnings.
Sohrab Movahedi indicates that 2014 seems to have been a transitional year for the bank as a series of actions already taken (sale of stake in CI, investment in financial services to Canadian Tire, internal reorganization, etc.).
The analyst believes that these actions, including the latest announcement, should simplify the management structure, but in the short term, they could create more complexity. He noted that the full benefits of the latest announcement is not expected before 2016.
Mr. Movahedi therefore downgraded its expectations, bringing the expected profit growth in 2015 in line with the banking industry as a whole.
The 2014 profit forecast of $5.92 going to $5.61 per share, the 2015 $5.90 to $5.80.
The target is reduced from $80 to $77.
Opsens (PAHO, $0.60): initiates monitoring
RBC Capital Markets initiates follow up with a recommendation to “outperform”.
Douglas Miehm indicates that Quebec society gives expand to its fiber optic sensors in the medical industry. They are already used in military, aerospace and mining industries and have more recently gained traction in the oil industry.
The analyst notes that medical sensors have recently received the necessary approvals in Japan and the US and European approvals are expected during the year 2015.
Mr. Miehm estimated that medical sensors Opsens should gain a significant market share if competing devices use a less reliable and less robust electric technology.
The expectation for 2014 is a loss of $0.06 per share, the 2015 loss of $0.06 and the 2016 to a loss of $0.02.
The target is $1.25.