Friday's analyst upgrades and downgrades

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Inside the Market's roundup of some of today's key analyst actions. This file will be updated during the trading day. For breaking analyst actions prior to market open every day, read our Before the Bell morning report.

FBR Capital analyst Scott Thompson is losing confidence that BlackBerry Ltd. will be able to secure a takeover deal before Monday's deadline for Fairfax Financial to complete the due diligence on its proposed $9 (U.S.) per share offer.

He cut his price target today on BlackBerry to $6.50 (U.S.) from $8 and reiterated an "underperform" rating.

Mr. Thompson notes that since the very tentative Fairfax deal was announced on Sept. 23, investors have received "little concrete evidence verifying Fairfax's intent." Fairfax Financial released its latest earnings late Thursday, but CEO Prem Watsa did not comment on the status of the BlackBerry offer.

"In the meantime, there has been a stream of press announcements from potential suitors, despite any details on a consortium's ability to secure financing or terms of a definitive agreement," Mr. Thompson was quoted as saying by StreetInsider.com. "Press news of engagement with multiple tech companies in search of an 'expression of interest' makes us question the level of confidence BlackBerry may have in executing an attractive offer with Fairfax."

Mr. Thompson thinks BlackBerry shares may soon "lose their floor" and trade close to $5 a share - which is what he thinks is their fundamental value.

He now places the odds of a deal getting done at 40 per cent, down from 70 per cent, StreetInsider reported.

"We do not see Fairfax, or a group of private investors, as truly interested in running the business since the combined result of shuttering the handset business and running the services-and-software business for cash, by our estimates, is only likely to generate $6-$8/share in value, at best," he said.

Shares in BlackBerry opened up 0.4 per cent on Nasdaq at $7.96 (U.S.).

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Analysts are raising price targets for Stantec Inc. after the Edmonton-based architectural services company blew past expectations for its third quarter profit.

Raymond James and Canaccord Genuity pointed to the company's 35-per-cent rise in profit and 21-per-cent rise in revenue as the brokerages raised their targets on the stock.

"With considerable earnings momentum, a strong balance sheet, and a corporate strategy that is 'coming of age' we think now is the wrong time to be fighting the tape on this stock," Raymond James analyst Ben Cherniavsky said in a research note.

Sara Elford of Canaccord Genuity said although her valuations are "towards the higher end of the historical range," they are supportable, and that she expects the company will continue to raise its dividend.

"Stantec has a clear and consistent strategy and game plan, no lack of opportunities to drive average annual revenue and earnings growth of 15 per cent for the near term … and a long track record of very disciplined and consistent execution," Ms. Elford wrote.

Target: Mr. Cherniavsky upgraded Stantec to "outperform" from "market perform" and raised the price target to $73 from $53.50.

Ms. Elford increased the share-price target to $69 from $58 and maintained a rating of "buy."

The average price target of analysts surveyed by Bloomberg is $64.60.

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CIBC World Markets analyst Tom Meyer has slashed his share-price target for Mercator Minerals Ltd., saying the Vancouver-based miner's strategic review could end badly for shareholders.

Mercator, which mines for copper and molybdenum in Arizona and Mexico, has been swept up in the tough times that have hit the junior sector- falling metals prices, lack of financing and higher costs.

"Given current market conditions, our optimism for a positive outcome for equity holders is diminishing" Mr. Meyer said in a research note. "Copper and molybdenum markets are not robust enough, nor is the market for development projects yet buoyant enough to award a reasonable valuation for the El Pilar [Mexico] project."

Target: Mr. Meyer cut his share-price target to 3 cents from 30 cents and downgraded his rating to "sector underperformer" from "sector performer." The average target of analysts surveyed by Bloomberg is 25 cents.

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Goldman Sachs cut its price target on Barrick Gold Corp. and maintained a "neutral" rating after the company late Thursday announced a $3-billion stock offering to pay off debt, which will dilute shareholder equity.

Goldman Sachs analyst Andrew Quail called Barrick's ongoing strategy, which also includes suspending the Pascua-Lama project,  "prudent and necessary," according to StreetInsider.com. "Barrick continues to focus on optimizing its portfolio of assets through asset sales and mine closures. We believe this proactive strategy of capital allocation is prudent and necessary in the current price environment," he said.

Target: Mr. Quail cut his price target to $17 (Canadian) from $19.

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In other analyst actions today:

Canaccord Genuity upgraded Alamos Gold to "buy" from "hold" and maintained a $20 (Canadian) target. But Raymond James downgraded its rating on Alamos to "market perform" from "outperform" due to valuation concerns as it cut its price target to $17.25 (U.S.) from $18.50. And RBC downgraded Alamos Gold to "sector perform" from "outperform" while maintaining an $18 (Canadian) price target.

Raymond James upgraded Twin Butte Energy to "strong buy" from "outperform" and raised its price target to $3 (Canadian) from $2.75. TD Securities upgraded its rating to "buy" from "hold" and raised its price target to $3 from $2.50.

Desjardins Securities cut its price target on Bombardier to $6.50 (Canadian) from $7 but maintained a "buy" rating.

Raymond James raised its price target on Methanex to $68 (U.S.) from $63 and maintained an "outperform" rating. CIBC raised its target to $40 from $36 and reiterated a "sector underperfomer" rating.

CIBC World Markets raised its price target on Canfor Pulp Products to $14 (Canadian) from $12 and maintained a "sector outperformer" rating.

CIBC World Markets raised its price target on Cogeco Cable to $53 (Canadian) from $51 and maintained a "sector performer" rating. RBC Dominion Securities cut its target to $55 (Canadian) from $57 and maintained an "outperform" rating.

Canaccord Genuity downgraded Kraft Foods Group to "hold" from "buy," maintains a $59 (U.S.) price target.

S&P Capital IQ upgraded First Solar to "buy" from "sell" with a price target of $70 (U.S.).

Barclays downgraded Weight Watchers to "equal weight" from "overweight" and cut its target to $31 from $46.

Moody's has placed Sony's long-term unsecured debt on review for a possible downgrade, citing slow progress in improving the Japanese firm's profitability.

Deutsche Bank downgraded Advance Auto Parts to "hold" from "buy" but raised its price target to $106 (U.S.) from $92.

Credit Suisse raised its price target on ConocoPhillips to $85 (U.S.) from $70.

Goldman Sachs raised its price target on Best Buy to $47 (U.S.) from $37 and maintained a "buy" rating.

Credit Suisse raised its price target on Fluor to $90 (U.S.) from $77.

Credit Suisse upgraded Penn Virginia to "outperform" from "neutral" and raised its price target to $11 (U.S.) from $7.

Credit Suisse raised its target on Noble Energy to $85 (U.S.) from $70.

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For more analyst actions, breaking investing news and analysis, follow Darcy Keith on Twitter at @eyeonequities