TSX energy stocks could be in for a tough go of it Wednesday with the latest news showing an increase in U.S. crude stocks combined with weaker demand.
If you’re looking for a place to hide, these three stocks could help you avoid the downdraft.
First Capital Realty
Last Friday, Raymond James upgraded the real estate investor from an “outperform” rating to a “strong buy” and had an average 12-month price target of $23.75 — 7.5% higher than its current share price.
As you might recall, First Capital Realty (TSX:FCR) announced in February that it was planning to convert to a real estate investment trust so that it could attract an untapped investment capital pool, be more comparable to industry peers, and return capital to shareholders in a more efficient manner.
As part of its plan to convert to a REIT and focus on mixed-use urban properties, it plans to sell 10% of its current portfolio and return those proceeds to shareholders.
Cineplex
On June 6, National Bank Financial upgraded the entertainment company from “sector perform” to “outperform” while also upping its target price on CGX stock by a dollar to $28.
In recent years, Cineplex (TSX: CGX) has moved from movie theatre business to diversified entertainment company with several concepts operating outside the movie realm, including TopGolf and The Rec Room.
However, the recent run by the Toronto Raptors in the NBA playoffs has created an opportunity for Cineplex to host free viewing parties of all the games, potentially bringing new customers to its various businesses.
Utilizing its theatre network from coast to coast, Cineplex can host these parties at 33 different locations in Canada, proving once more that video streaming can’t do what it can when it comes to entertainment.
Canadian Western Bank
Yesterday, Barclays upgraded Canadian Western Bank (TSX: CWB) from “underweight” to “equal weight” and raised its price target by a dollar to $31.
The bank recently reported its second-quarter results, and they were solid.
On the top line, revenues were $210 million, 7% higher than a year earlier, while on the bottom line, it earned $62 million, or $0.71 a share, a 4% increase from the $0.68 it made a year earlier.
CWB has increased its dividend for 27 consecutive years. Yielding 3.7% at the moment, Motley Fool contributor Demetris Afxentiou recently called it a “viable option for investors to consider beyond what the traditional big banks offer.”
