Wednesday, December 07, 2005

UBS Adds TD to List of Top Picks

The Globe and Mail, Angela Barnes, December 7, 2005

UBS Securities Canada Inc. has dropped Bank of Nova Scotia and Meridian Gold Inc. from its list of top picks and added Toronto-Dominion Bank and Agnico-Eagle Mines Ltd.

In the energy sector, which the brokerage firm has as a "neutral," the choices are EnCana Corp. in the producer category, Suncor Energy Inc. among the integrateds and TransCanada Corp. among the power issues.

UBS also rates the consumer staples sector as a "neutral." The pick there is Shoppers Drug Mart Corp. because of "good demographics, projected continued growth from geographic expansion, increased square footage of existing stores and improved penetration of higher margin private label and health and beauty products," analyst Peter Rozenberg said.

The materials, industrials, information technology and telecom services sectors are all overweighted. Alcan Inc., Methanex Corp., Agnico-Eagle Mines Ltd. and Inmet Mining Corp. all got the nod in the materials group. And in the telecom sector, Rogers Communications Inc. was the preferred stock. Canadian National Railway Co. was the top pick in the industrials.

Consumer discretionary, health care, financials and utilities are underweighted. UBS top picks are TD, Manulife Financial Corp. and Brascan Corp. in the financials, Magna International Inc. in the consumer discretionary sector, Axcan Pharma Inc. in health care, and TransAlta Corp. in the utilities.