Moody's (NYSE:MCO) downgraded EXCO Resources (NYSE:XCO) from "Positive" to "Developing" on the proposed buyout of the company and taking it private being a distraction to management.
Other agencies joined the downgrade bonanza, with Morgan Keegan downgrading them from "Outperform" to "Market Perform," MBO Capital downgraded them from "Outperform" to "Market Perform" as well, and Scotia Capital also downgraded XCO from "Sector Outperform" to "Sector Perform."
Price targets stood at $20 from Morgan, increased from $17 to $21 by BMO, and from $20 to $20.50 by Scotia.
Standard & Poor's Rating Service put the "BB-" corporate credit rating and "B" senior unsecured debt rating on negative credit watch.
Ratings could be lowered depending on the success of the takeover and how the financing is structured, concluded Standard & Poor's.
Moody's sees the process itself as being detrimental to the company, no matter what the ultimate terms of the deal may end up being.
Showing posts with label Scotia Capital. Show all posts
Showing posts with label Scotia Capital. Show all posts
Wednesday, November 3, 2010
Thursday, September 2, 2010
Harry Winston (NYSE:HWD) Upgraded by Scotia Capital after Strong Quarter
Scotia Capital upgraded diamond producer Harry Winston (NYSE:HWD) from "Sector Perform" to "Sector Outperform," after the company blasted through analysts' expectations for the last quarter.
The question is whether they can continue that performance going forward, and that's going to be a big challenge for the company.
The broader diamond market has rebounded, to help Harry to their decent numbers, and they also bought back the stake held by Kinross Gold (NYSE:KGC), which brought their stake in the Diavik mine back to 40 percent, with the remainder held by Rio Tinto (NYSE:RTP).
Compared to their major competitors, they aren't near as efficient with operational costs, and retail isn't nearly as strong as it could be.
Those would have to be improved to make Harry Winston more convincing over the long term.
The question is whether they can continue that performance going forward, and that's going to be a big challenge for the company.
The broader diamond market has rebounded, to help Harry to their decent numbers, and they also bought back the stake held by Kinross Gold (NYSE:KGC), which brought their stake in the Diavik mine back to 40 percent, with the remainder held by Rio Tinto (NYSE:RTP).
Compared to their major competitors, they aren't near as efficient with operational costs, and retail isn't nearly as strong as it could be.
Those would have to be improved to make Harry Winston more convincing over the long term.
Wednesday, March 17, 2010
SEMAFO (TSE:SMF) Rated “Sector Outperform” by Scotia Capital (TSE:BNS)
Scotia Capital Rates SEMAFO “Sector Outperform”
Scotia Capital (TSE:BNS) rated SEMAFO (TSE:SMF) as “Sector Outperform” as they initiated coverage of the company.
The target price was from C$6.00, 17 percent over the recent close of C$5.13, which has since went up.
Scotia's report said this was because of the strong presence of SEMAFO in West Africa, where they has a strong foundational asset in the Mana project.
They consider Mana a strong opportunity for growth, whereby SEMAFO will benefit from for some time to come.
Scotia Capital Rates SEMAFO “Sector Outperform”
Scotia Capital (TSE:BNS) rated SEMAFO (TSE:SMF) as “Sector Outperform” as they initiated coverage of the company.
The target price was from C$6.00, 17 percent over the recent close of C$5.13, which has since went up.
Scotia's report said this was because of the strong presence of SEMAFO in West Africa, where they has a strong foundational asset in the Mana project.
They consider Mana a strong opportunity for growth, whereby SEMAFO will benefit from for some time to come.
Scotia Capital Rates SEMAFO “Sector Outperform”
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