Monday'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.

While warning longer-term risks are still very high, Cormark Securities analyst Richard Tse upgraded BlackBerry Ltd. today to "speculative buy" from "market perform" because of improved near-term sentiment for the stock.

He also raised his price target to $11.50 (U.S.) from $7.50.

"BlackBerry's platform transition continues to be an uphill battle. But despite the intense competition, a major product transition, and lack of visibility, the expectations based on the short-term actions should continue to fuel the positive sentiment," StreetInsider.com quoted Mr. Tse as saying in a research note. "In addition, we believe a shift toward enterprise could present a service revenue opportunity. But time is ticking on driving a sustainable business."

BlackBerry is scheduled to report its fourth-quarter results this Friday before markets open. Mr. Tse actually projects results will be worse than consensus expectations: he expects revenues of $900-million (U.S.), versus the consensus of $1.1-billion, and forecasts a loss per share of 78 cents, versus the Street on average calling for a loss of 53 cents.

"We believe the newsflow and non-operating changes (like strengthening the balance sheet) will continue to drive the positive sentiment. In our opinion, that sentiment could continue to take BBRY/BB higher in the short term. That said, we believe the prospects of an operating turnaround for BlackBerry are still a long way off. This note pairs the short-terms positives against the longer-term negatives," he said.

The analyst consensus price target for BlackBerry over the next year is $7.51 (U.S.), according to Thomson Reuters.

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Shares in AutoCanada Inc. have been on fire this year and Canaccord Genuity analyst Derek Dley sees even more upside ahead as the car dealership firm continues to grow rapidly through acquisitions.

He raised his price target to $63 (Canadian) from $48 as he reiterated a "buy" rating.

The company reported last week a 27 per cent jump in revenues in its latest quarter from a year ago, while earnings per share of 44 cents were well ahead of 33 cents a year earlier, as new vehicle sales increased by 24 per cent. AutoCanada's focus on light truck sales and on Western Canada allowed the company to slightly outperform the broader new vehicle sales market, noted Mr. Dley.

But perhaps more importantly, AutoCanada management raised their guidance for acquisitions over the next 24 months to 10 to 12 dealerships, a significant increase from previous guidance of two to five over the next 15 months, as there's been an uptick in the number of interested private dealerships that are willing to sell.

"We believe AutoCanada is well positioned to consolidate the automotive dealership market, given its healthy balance sheet and sound acquisition history," said Mr. Dley. "Therefore, we are willing to give the company a premium multiple as we expect AutoCanada to continue to execute accretive acquisitions near term."

Mr. Dley's new price target represents 19.9 times forward earnings.

The analyst consensus price target is $54.75.

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The prospect that interest rates will soon be going up makes Brookfield Renewable Energy Partners L.P. a less attractive investment, especially given the recent appreciation in its unit price, said RBC Dominion Securities analyst Nelson Ng.

He downgraded the company to "sector perform" from "outperform" while maintaining a $32 (Canadian) price target. Brookfield Renewable Energy has already delivered a 16 per cent total return so far this year, including dividends.

"We continue to view Brookfield Renewable as a low-risk income vehicle with predictable contracted cash flows and modest growth. We believe that in a bullish and rising interest rate environment, investors may reallocate capital from low-risk names (e.g., Brookfield Renewable) to pursue opportunities with a higher growth and risk profile," Mr. Ng said in a research note.

Meanwhile, with units trading at 13.5 times his forecast 2015 EBITDA, they are looking fairly valued. "Brookfield Renewable has one of the highest valuation multiples in its peer group, mainly due to its large hydro weighting, and we believe that in a rising interest rate environment the potential for expansion of the valuation multiple will be limited," he said.

The analyst consensus price target is $31.70.

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Recent changes to the U.K. annuity market will put "modest pressure" on Great-West Lifeco Inc.'s earnings, according to RBC Dominion Securities analyst Darko Mihelic.

U.K. tax rules will soon allow retirement age people to access their defined contribution pension savings as they choose, a development that Great-West's life insurance team estimates will shrink the annuity market by 90 per cent.

Mr. Mihelic estimates that roughly 35- to 45-per-cent of the company's U.K. earnings come from the annuities business, which equates to a range of $160-million to $200-million .

The new rules do not come into full force until April 2015, and Mr. Mihelic says Great-West can re-position itself for the changes.

He maintains his "sector perform" rating and cut his price target by $1 to $32 (Canadian).  The analyst consensus price target over the next year is $33.50, according to Thomson Reuters.

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Health-benefits company Wellpoint Inc. is becoming more comfortable with the Affordable Care Act, prompting a target price boost from UBS analyst A.J. Rice.

Wellpoint's familiarity with "public exchanges" (government marketplaces for buying and selling health insurance) is growing as the average age of enrollees, early script trends, and the product mix have tracked original expectations, notes Mr. Rice.

The company believes strong membership trends and margins in the individual market can offset pressure on small group enrollment and margin over the next five years.

Mr. Rice maintained his "buy" rating and boosted his target price to $120 (U.S.) from $107. The analyst consensus price target over the next year is $97.26.

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In other analyst actions:

Raymond James hiked its price target on Domtar to $140 (U.S.) from $125 and maintained an "outperform" rating.

Raymond James hiked its price target on Loblaw to $60 (Canadian) from $56 and maintained an "outperform" rating.

CIBC World Markets cut its price target on Rocky Mountain Dealerships to $13.50 (Canadian) from $15.50 and reiterated a "sector performer" rating.

Euro Pacific Canada upgraded Cardiome Pharma to "buy" from "hold" and hiked its price target to $15 (U.S.) from $9.50.

Credit Suisse hiked its price target on Barrick Gold to $21 (U.S.) from $19 and maintained a "neutral" rating.

Credit Suisse hiked its price target on Newmont Mining to $26 (U.S.) from $21 and maintained a "neutral" rating.

Canaccord Genuity boosted its price target on Nu Skin to $93 (U.S.) from $78 and maintained a "hold" rating.

Raymond James started coverage on The Descartes Systems Group with an "outperform" rating and $17.50 (U.S.) price target.

BMO Nesbitt Burns hiked its price target on Alcoa to $10 (U.S.) from $7, but kept an "underperform" rating. It raised its earnings estimates based on higher midwest aluminum premiums.

JMP Securities upgraded Yelp to "market outperform" from "market perform" with a price target of $113 (U.S.).

Goldman Sachs downgraded Tiffany & Co. to "buy" from "conviction buy" and cut its price target to $100 (U.S.) from $101.

Bernstein upgraded Boston Scientific to "outperform" from "market perform" with a price target of $15 (U.S.).

BMO Nesbitt Burns upgraded Symantec to "outperform" from "market perform" but cut its price target to $22 (U.S.) from $24.

Wells Fargo downgraded Gartner to "market perform" from "outperform" with a price target of $68-$73.

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