CIBC Analyst Cuts Price Targets on the TSX, Oil and Gas
Source: Seeking Alpha (9/11/08)
After the S&P/TSX composite index’s 487-point plunge on Tuesday, a decline of nearly 4%, Canada’s benchmark index is essentially in bear market territory after peaking on June 6. Oil is down roughly 30% from its summer high, natural gas is off 45% and a slew of other commodities have followed suit.
The meltdown has prompted CIBC World Markets to once again slash its year-end target for the materials-rich TSX to 13,000 from 14,300, which represents just 7% of upside from Tuesday’s close of 12,146.76. Its 2009 target falls to 14,000 from 15,250.
Jeff Rubin, CIBC World Markets chief economist and chief strategist said: With Europe in recession and Japan and the U.S. economy in borderline status, world growth outlook is the weakest in years. But it is still nowhere near as weak as plunging resource stocks would suggest...