TDSecurities Inc. analyst Jonathan Kelcher cut his investment opinion of to "hold" from "buy," with a price targetof C$22.
The analyst wrote in a research report: "While the bidrepresents a 7.5% premium to consensus NAV of CAD$20.00 (4% premium to ourstreet-high CAD$20.80 NAV), we view it as the low end of a fair value rangebased on historical comparable transactions. Absent a competing bid, we wouldadvise investors to tender to this offer. However, given the relatively low premiumto NAV, the fact we believe this was not a marketed deal, and low break fee(1.9% of EV), we believe there is some likelihood of a competing bid emerging, althoughwe would put that likelihood as relatively low (<15%). Given where the shareprice is trading, we believe there is merit in holding on to the units to seeif a competing bid emerges. As such, we are lowering our recommendation to HOLDfrom Buy, and maintaining our target price of C$22.00."