The Globe and Mail (BC Edition)

EYE ON EQUITIES

AECON GROUP (ARE-TSX) CLOSE $19.69, UP 36¢

After meetings with its senior management team, ATB Capital Markets analyst Chris Murray sees Aecon Group Inc. as a “multiple expansion and growth story.” “We continue to see attractive value in ARE and expect a higher quality backlog and continued growth in recurring revenue programs to support better earnings quality in future periods,” he said.

Target: Mr. Murray hiked his target to $29 from $21, which is the consensus on the Street, with an “outperform” recommenda­tion.

RUSSEL METALS (RUS-TSX) CLOSE $38.71, UP $1.08

Seeing its valuation as “attractive,” TD Cowen analyst Michael Tupholme upgraded Russel Metals Inc. to a “buy” recommenda­tion from “hold” previously, saying he’s “encouraged” by the recent price rise in hot-rolled coil as well as margin upside from its value-added processing initiative­s, potential from its recent acquisitio­n of Samuel Son & Co. Ltd., and a “strong” balance sheet.

Target: His target rose to $46 from $44. Consensus is $46.67.

CIBC (CM-TSX) CLOSE $83.59, UP 10¢

TD Cowen analyst Mario Mendonca called Canadian Imperial Bank of Commerce his “best idea” in the bank sector, touting its combinatio­n of “strong” underlying performanc­e and relative valuation. “In terms of performanc­e, we highlight consistent­ly strong PTPP growth, lower credit losses and strong capital levels (recently announced NCIB),” he said.

Target: Mr. Mendonca kept a “buy” recommenda­tion and $91 target. Consensus is $80.15.

iA FINANCIAL (IAG-TSX) CLOSE $105.93, DOWN 11¢

Mr. Mendonca named iA Financial Corp. Inc. his “best idea” among Canadian life-insurance companies on Monday, seeing a discount valuation despite “strong” capital generation that exceeds peers. “After a challengin­g 2023, IAG fundamenta­ls have turned the corner,” he said.

Target: The analyst reiterated a “buy” rating and $114 target. Consensus is $107.25.

CHOICE PROP. REIT (CHP.UN-TSX) CLOSE $15.16, DOWN 8¢

While acknowledg­ing that “the current environmen­t may not be the most ideal time for vending developmen­t land,” Canaccord Genuity analyst Mark Rothschild thinks Canadian retail real estate investment trusts should “reconsider the amount of value in assets not producing income,” believing it would be “accretive and appreciate­d by many investors.”

Target: He increased his Choice Properties REIT target to $16.50 from $15 with a “buy” rating. Consensus is $15.69.