The Globe and Mail reports in its Thursday edition that prior to Wednesday announcement that it has been acquired by Bird Construction ($6.68), ATB Capital Markets analyst Chris Murray downgraded Stuart Olson (32.5 cents) to "underperform" from "sector perform" with a 70-cent share target, down from $1. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at 77 cents.
Mr. Murray says in a note: "Our decision to lower our rating reflects both our assessment of risk and expected returns. The company's recent decision to pay interest for the quarter in shares in a dilutive manner highlights to us the risk in the Company's balance sheet, the firm's weak near-term earnings and the lengths it is going to preserve sufficient liquidity to maintain operations. The Globe reported on Jan. 14 that Canaccord Genuity analyst Yuri Lynk continued to rate Stuart Olson "hold." The shares were then worth $1.98. The Globe reported on Jan. 17 that Raymond James analyst Daryl Swetlishoff was sticking with his "underperform" on Stuart Olson when it could be had for $2.07. The Globe reported on March 17 that National Bank rated Stuart Olson "underperform." It was then worth $1.25.
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