Acadian Timber Corp. (TSE: ADN) remains a Buy with a share price target cut to C$20 from C$21 by Dundee Capital Markets on Tuesday.
The broker was prompted by Acadian Timber reporting EPS at $0.26, below both DCM at $0.45 and the FactSet Mean at $0.33. The shortfall occurred in softwood pulp log sales, a result of mill closures in Maine and wet weather making harvest more difficult.
The adjusted EBITDA was $7.0mln, was also below DCM at $9.3mln and the mean at $8.2mln. New Brunswick was in line owing to the 6% year-on-year increase in average log price. The shortfall was in Maine.
"Our Q2/16 EPS estimate is $0.18 compared to the FactSet Mean at $0.19. Although hardwood markets and pricing continue to be favourable, the same cannot be said for softwood pulpwood, especially in Maine," said Dundee.
"Our 2016E EPS estimate of $1.06 (mean $1.16) reflects the results from Q1/16, challenging markets in Maine, but also takes into account higher hardwood log pricing which we believe is sustainable. Fundamentals all point to a gradual recovery in housing and hence, higher log and lumber demand," the broker added.
Acadian shares ended Tuesday down 0.45% at C$17.70.
Meanwhile, Cinemark Holdings (NYSE:CNK) shares gained after Wedbush heralded the first quarter results "impressive despite currency headwinds."
"Currency translation continues to mask strong results and impact valuation," while "Results surpassed our estimates from share gains in domestic box office and impressive cost control."
Total revenue was $705mln versus the Wedbush estimate of $700mln and consensus of $699mln. US revenue was $541mln versus Wedbush forecast of $528mln.
Wedbush said it maintaining Neutral but raising the price target to $40 from $36.
Cinemark shares ended up 2.2% at $35.94.
Finally, shares of biopharma Omeros Corp (NASDAQ:OMER) had a rockier ride on Tuesday, falling 16.3% to $10.51 following first quarter earnings. Nevertheless, Wedbush reiterated the stock as Outperform and with a price target of $62 - six times what it changed hands for on Tuesday.
"Despite seasonal headwinds in Q1, OMIDRIA sales accelerated in March after Omeros boosted their commercial efforts. With OMIDRIA sales growth and potential material catalysts in 2016-2017 from the deep pipeline of product candidates, we believe OMER is trading at an attractive valuation," said Wedbush.
Management anticipates OMIDRIA sales to accelerate for the remainder of the year, the broker added.