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A Royal Bank of Canada (RBC) sign is seen in downtown Toronto.Reuters

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.

Underperformance in shares of LinkedIn Corp. has created a buying opportunity, said RBC Dominion Securities analyst Mark S. Mahaney, who upgraded his rating today to "outperform" from "sector perform."

Over the past six months, shares in the social media site aimed at professionals and job seekers lost 13 per cent of their value, at a time when the S&P 500 rose 12 per cent. Mr. Mahaney thinks several issues are to blame, including overly aggressive Street estimates, heavy investment spending planned for 2014, a greater-than-expected slowdown in revenue growth at its Talent Solutions operation, and uncertainty over format changes at its Marketing Solutions business.

He thinks these concerns are overstated. For starters, Street analysts have reduced their EBITDA estimates by 11 per cent for 2014 since the beginning of this year. And while LinkedIn is planning big investments in 2014 for initiatives such as hiring more sales staff, product and market expansions, and acquisitions, these are coming from a position of strength in the industry, he said.

Meanwhile, a new survey conducted by RBC has confirmed the company's strong competitive position. Some 56 per cent of respondents who are LinkedIn customers said they were completely, extremely or very satisfied. It also found that 89 per cent of customers plan to maintain or increase their LinkedIn spending over the next 12 months - in line with previous surveys.

"We have consistently referred to LNKD as a "buy-on dips" stock. Well…here's the dip and here's the buy," Mr. Mahaney said in a research note.

He raised his price target to $250 (U.S.) from $225. The average analyst target is $251.47, according to Thomson Reuters.

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North American Palladium Ltd.'s proposed convertible debt offering will be "extremely dilutive" for existing shareholders, warned Raymond James analyst Alex Terentiew as he reiterated an "underperform" rating.

He estimates that the latest financing of $32-million in convertible debt would result in a 38 per cent dilution in the value of shares, as new debt-holders will be allowed to take advantage of a provision that allows them to receive all interest to maturity upon conversion to equity.

"Our negative view of the PDL equity is further reinforced by what we view as aggressive 2014 operating guidance, lack of clarity regarding near-term mine plan and capital requirements, and management's own admission of the need to raise additional financing starting in 2015 beyond the currently proposed convertible debt offering," he added.

Mr. Terentiew cut his price target to 30 cents (Canadian) from 50 cents. The average analyst target is 88 cents.

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Royal Bank of Canada's higher-than-expected dividend hike this morning should have a positive impact on the stock's near-term performance, said Desjardins Securities analyst Michael Goldberg.

RBC's adjusted fiscal first quarter 2014 earnings per share of $1.44 (Canadian) were roughly in line with consensus estimates, noted Mr. Goldberg, but the quarterly dividend hike of 4 cents a share to 71 cents was double Street expectations.

RBC's credit quality improved in the quarter, with provisions for credit losses pegged at $292-million (Canadian), down from $334-million the prior quarter. RBC reported increased net income from capital markets compared with the prior quarter, but this was slightly below the strong performance from the same period last year. "Equity trading was flat quarter-over-quarter and up year-over-year, while fixed income trading was up quarter-over-quarter and down year-over-year," he also noted

Overall, Mr. Goldberg views RBC's first-quarter results as "neutral" and he reiterated a "buy" rating and an $81 (Canadian) price target. The average analyst target is $76.82.

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Canadian space technology stalwart MacDonald, Dettwiler and Associates Ltd. appears poised for a solid 2014, according to CIBC World Markets analyst Stephanie Price.

The company posted fourth-quarter results that beat expectations in both earnings per share and earnings before interest, taxes, depreciation and amortization, and is committed to expanding the offerings at its Palo Alto plant, which would improve capacity.

"With a stable commercial satellite market and upside from sovereign nations, U.S. government and robotics, we view MDA as well positioned going into 2014," said Ms. Price.

She maintained her "sector outperform" rating and raised her price target to $94 (Canadian) from $90. The analyst consensus price target over the next year is $89.08, according to Thomson Reuters.

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Canaccord Genuity analyst Derek Dley liked what he heard at Tim Hortons Inc.'s 2014 Investor Day this week.

Mr. Dley says the initiatives presented regarding increasing revenues, reducing capital costs, and enhancing the overall customer experience should benefit shareholders.

"Overall, we believe that Tim Hortons demonstrated a proactive approach to driving earnings growth in a highly competitive and challenging market," said Mr. Dley.

Mr. Dley maintained his "hold" rating and $59 price target. The analyst consensus price target over the next year is $64.40, according to Thomson Reuters.

Read more here from the Globe's Marina Strauss about Tim Horton's future plans.

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In other analyst actions:

Industrial Alliance Securities downgraded Pason Systems to "hold" from "buy" with a price target of $27 (Canadian).

Raymond James initiated coverage on Imperial Metals with a "market perform" rating and $18.50 (Canadian) price target.

TD Securities initiated coverage on Painted Pony Petroleum with a "buy" rating and $11 (Canadian) price target.

Raymond James raised its price target on Great Canadian Gaming to $15 (Canadian) from $12.50 and maintained a "market perform" rating.

Credit Suisse upgraded Progressive Waste Solutions to "outperform" from "neutral" and raised its price target to $30 (U.S.) from $24.

Piper Jaffray downgraded Juniper Networks to "neutral" from "overweight" with a price target of $28 (U.S.).

Wells Fargo upgraded Ralph Lauren to "outperform" from "market perform" and raised its valuation range to $186 (U.S.) to $197 from $166 to $171.

Canaccord Genuity upgraded SciQuest to "buy" and raised its price target to $36 (U.S.) from $28.

Wells Fargo downgraded Forest Oil to "market perform" from "outperform" and lowered its price target range to $3-$5 from $4-$6.

Goldman Sachs cut its price target on First Solar to $42 (U.S.) from $45 and reiterated a "sell" rating.

Credit Suisse downgraded Phillips 66 Partners LP to "neutral" from "outperform" but raised its price target to $47 (U.S.) from $42.

Credit Suisse downgraded Valero Energy Partners to "neutral" from "outperform" and maintained a $38 (U.S.) price target.

With contributions from Jody White

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