Leading Brokers Name 3 TSX Shares to Buy Friday

The TSX fell 55.77 points or 0.34% on Thursday to close at 16,253.46. Eight of the 11 major sectors were lower. The Canadian dollar also was lower. 

| More on:
Person Hands Opening Mailbox To Remove Newspaper

Image source: Getty Images

The TSX fell 55.77 points, or 0.34%, on Thursday to close at 16,253.46. Eight of the 11 major sectors were lower. The Canadian dollar also was lower. 

Analysts were in a good mood Thursday, upgrading the following three TSX stocks. 

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) got an upgrade from Desjardins Securities analyst Keith Howlett ahead of the convenience store operator’s September 4th earnings announcement. 

Howlett upgraded Couche-Tard from “hold” to “buy,” while also lowering his earnings expectations for the first quarter from US$1.05 to US$0.95. The analyst lowered his estimate based on weaker gas margins. 

“Couche-Tard has proven itself a patient, disciplined acquirer over the last 40 years,” the analyst said. “The company’s other major long-term advantage is the uncommon ability to successfully operate convenience and fuel retail stores, being one of the most challenging segments of retailing. Couche-Tard has acquired a number of consolidators (CST Brands, Pantry) who failed to replicate its success.”

Howlett also raised his target price on Couche-Tard by a dollar to $88. 

Canadian Pacific 

While it wasn’t a specific analyst that upgraded Canadian Pacific Railway (TSX:CP)(NYSE:CP), the fact that Zacks Equity Research upgraded its stock is worthy of some consideration on a Friday. 

Zacks sees CP’s rising earnings estimates and improvement in its underlying business as a major reason to consider its stock at current prices. CP is expected to earn $12.74 a share in fiscal 2019 — a growth rate of 13.8%. 

In the crop year ended July 31, CP announced that it moved 2.8% more grain in the past crop year (2018-2019) than in the previous year. In total, CP shipped 26.8 million metric tonnes of Canadian grain. 

The company broke several records over the past year, including three consecutive months shipping more than 15,000 carloads of western Canadian grain to the Port of Vancouver. This was the first time it’s ever shipped so much grain over three consecutive months. 

AGF Management

AGF Management (TSX:AGF), the mutual fund company down on its luck in recent years, was upgraded earlier this week by CIBC from “neutral” to “outperform” while also raising its 12-month target price from $6 to $7.50, providing investors with 34% upside based on current prices. 

Also contributing to the positive outlook on AGF could be the possibility that London-based Smith & Williamson, which AGF owns 33.6%, is in discussions with Tilney Group about a merger that would create a company with $66 billion in assets under management, making it one of Britain’s largest wealth managers. 

AGF has owned a piece of Smith & Williamson since 2002. 

Barclays Capital analyst John Aiken maintains that investors aren’t giving AGF’s stake in the British wealth manager the value it deserves. Should the merger go through, a $7.50 target might be conservative.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Will Ashworth has no position in any stocks mentioned.  

More on Investing

Redwood trees stretch up to the sunlight.
Dividend Stocks

2 TSX Growth Stocks Set Up for Outsized Gains in 2024

Considering the growth prospects that these two TSX stocks offer, I would keep a very close eye on them as…

Read more »

movies, theatre, popcorn
Investing

3 Things You Need to Know if You Own CGX Stock Today

Cineplex stock remains in the doghouse, trading at 2.6 times earnings, but there are clear signs of an upcoming rebound.

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Strong Dividend Stocks I’d Add to My Portfolio Right Now

Given their solid underlying businesses, stable cash flows, and high yields, these three dividend stocks are an excellent addition to…

Read more »

TIMER SAYING TIME FOR ACTION
Bank Stocks

1 Dividend Stock Down 20% to Buy Right Now

This dividend stock provides investors with more growth towards all-time highs, as well as a superior dividend yield over 6%.

Read more »

ETF chart stocks
Dividend Stocks

Got $500 to Invest in Stocks? Put It in This Index Fund

This ETF is one of the best options for those with a bit of cash, who don't want to worry…

Read more »

Tech Stocks

Nvidia Stock Is Making History: Will It Make New Investors Any Money?

Nvidia stock (NASDAQ:NVDA) continues to surge past all-time highs, with shares up 265% in the last year alone! But can…

Read more »

data analyze research
Stocks for Beginners

3 Reasons to Buy Dollarama Stock Like There’s No Tomorrow

Dollarama (TSX:DOL) stock has seen massive growth this last year, but more could be on the way -- not just…

Read more »

warning or alert
Dividend Stocks

Help! How Do I Get Rid of My Stock Duds?

Stock duds can prevent you from making really big returns and using that cash to fund future investments. How do…

Read more »