The TSX fell 0.21% on Thursday to close at 16,012.53 with healthcare and energy stocks leading the decline. Meanwhile, the major U.S. stock exchanges gained ground due to July’s solid retail sales.
Analysts were in a good mood on Thursday, upgrading the following three TSX stocks.
Canadian Apartment Properties REIT
National Bank Financial upgraded Canadian Apartment Properties REIT (TSX:CAR.UN) on Thursday from “sector perform” to “outperform” with a $5 increase in its target price to $57.
The REIT was upgraded due to strong rent growth prospects combined with a tight near-term supply of multifamily residential in Canada.
Industrial Alliance Securities analyst Brad Sturges, who has a “buy” rating on CAP REIT, raised his target price by $3 to $56.
“While the REIT may experience higher insurance costs and property taxes year-over-year, CAPREIT is anticipated to generate above-average 2019 same-property average monthly rent growth year-over-year,” Sturges said in a note to clients.
The residential REIT’s stock rose 1.3% Thursday on the news.
Freshii
CIBC analyst John Zamparo upgraded Freshii Inc. (TSX:FRII) from “underperform” to “neutral” on his improving outlook for the restaurant chain that sells healthy food. This upgrade came from Zamparo despite Freshii stock falling 6% Wednesday on a decline in same-store sales in the second quarter.
“We believe numerous priorities exist in order to steer Freshii in the right direction. POS integration, mobile app improvement, expedient menu innovation and, above all, greater focus on in-store execution remain critical to recovering same-store sales growth (SSS) and strengthening average unit volumes (AUVs),” Zamparo noted.
Zamparo sees Freshii slowing its rate of store closures, reducing the number of strategic decisions it has to make, getting back to running a restaurant business instead of putting out fires.
Superior Plus
Superior Plus (TSX:SPB) delivered second-quarter results on Tuesday that met analyst expectations. As a result, Industrial Alliance analyst Elias Foscolos raised his rating on Canada’s leading provider of propane to homes and businesses.
In the second quarter, Superior Plus had adjusted EBITDA of $60 million. The company believes it will deliver adjusted EBITDA between $490 million and $530 million in fiscal 2019. Foscolos estimates it will be $514 million.
Superior Plus’ stock fell 7% on the Q2 2019 results.
“Superior’s stock has unexpectedly dipped below its peers despite the in line quarterly results,” Foscolos wrote in a note to clients. “The Company continues to optimize its assets while exploring additional tuck-ins and mid-sized acquisitions in the U.S. With a potential total return of 30 per cent; we are upgrading.”
Superior Plus is up 28% year to date through August 15.
