August 9, 2010 / 2:46 PM / 7 years ago

REFILE-Wajax units soar on strong Q2 results

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* BMO, Desjardins raise target price on stock

* Units up as much as 8 pct, touch 22-month high

Aug 9 (Reuters) - Units of Canada’s Wajax Income Fund WJX_u.TO touched a 22-month high Monday, after the mobile equipment and industrial component distributor posted strong second-quarter results, prompting at least two brokerages to raise their price targets on the stock.

Shares of the fund were up 5 percent at C$29.35 Monday morning on the Toronto Stock Exchange. They earlier touched a high of C$30.

Wajax posted higher quarterly results on Friday, helped by better performances at all three of its business segments, and declared a special dividend for three months starting in August. [ID:nSGE6750JD]

“We would expect a true-up distribution in the fourth quarter assuming the year unfolds as planned,” BMO Capital Markets analyst Bert Powell wrote in a note to clients.

Powell raised his price target on Wajax’s stock to C$35 from C$31, while maintaining an “outperform” rating.

Desjardins Securities analyst Benoit Poirier also raised his price target on the company’s stock to C$30 from C$26, while maintaining a “buy” rating.

“We continue to believe that Wajax is well positioned to benefit from the economic recovery, with further upside as earnings are still depressed,” Poirier added. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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