The latest figures on Canada’s economic growth finally offered a respite from the disappointing news these past few months. Statistics Canada reported that gross domestic product (GDP) for February grew 0.3 percent year over year, beating the consensus forecast of 0.2 percent. January’s GDP growth was also revised higher, to 0.3 percent.

That puts the Canadian economy on track to grow at a 2.3 percent annualized pace for the first quarter. Meanwhile, trailing-year GDP grew 1.7 percent year over year, its fastest pace since July 2012.

Even better, this growth was largely derived from the resource sector. The category encompassing mining, quarrying, oil and gas extraction accounted for 8.2 percent of GDP and was up 2.2 percent month over month and 4 percent year over year. That marked the fifth consecutive monthly expansion in this area. Economists at CIBC World Markets believe the energy space could receive an additional boost in the third quarter, thanks to higher output from oil sands.

Breaking the category into subsectors, mining and quarrying jumped 6.4 percent, with much of that move attributed to a significant rise in potash production. Oil and gas extraction were up a more modest 1 percent because of higher oil production. And drilling activity drove a 1.2 percent increase in energy services.

On the downside, the service sector was decidedly weak. Both retail and wholesale trade were anemic, with growth of 0.1 percent and a decline of 0.2 percent, respectively. Sales of automobiles and parts buoyed the retail numbers, while the wholesale figure fell due to a drop in sales of machinery and equipment, as well as household and personal goods.

Any enthusiasm regarding Canada’s stonger-than-expected growth in February should likely be tempered by the fact that the Bank of Canada predicts GDP growth to come in at 1.5 percent for full-year 2013, a slowdown from 1.8 percent in 2012. However, the central bank also forecasts a moderate rebound in economic growth in 2014-15, with GDP growing at 2.8 percent and 2.7 percent, respectively.

As for the present, Canada’s economy faces a number of challenges, including a slowing US economy. Economic growth in the US, which is Canada’s largest trading partner, fell short of expectations during the first quarter. The consensus estimate had been for GDP to grow by 3 percent from a year ago, but the first-quarter print came in at 2.5 percent, largely due to a cutback in federal defense spending as a result of the sequester.

Cutbacks in government spending along with declines in disposable income due to higher taxes will continue to be a drag on the US economy, with most economists forecasting GDP to grow at just 1.5 percent during the second quarter.

At the very least, the US Federal Reserve has indicated it will likely maintain its easy-money policy through 2015. Similarly, the Bank of Canada has kept its key overnight rate at 1 percent since December, the longest such pause since the 1950s.

Although Canada’s outgoing central bank Governor Mark Carney made periodic hawkish pronouncements with regard to potential rate hikes over the past year, it remains to be seen what sort of approach his successor will take. Mr. Carney garnered rare acclaim for a central bank chief, and he was ultimately rewarded with the opportunity to helm the UK’s central bank.

With less than a month until Carney departs for the UK, the Bank of Canada announced late Thursday that Stephen Poloz had been selected as the central bank’s next governor. Mr. Poloz spent the first 14 years of his career at the Bank of Canada, rising to chief of the bank’s research department before spending several years in the private sector.

Therafter, he returned to public service as chief economist at Export Development Canada (EDC), the government’s export credit agency. In 2011, Mr. Poloz was appointed president and CEO of the EDC.

Despite his impressive pedigree, Mr. Poloz was considered an outside choice by economists as well as Bay Street bankers, who favored Tiff Macklem, Mr. Carney’s second in command, for the position. As the selection process dragged on, however, it became apparent that the relatively soft-spoken Mr. Macklem would likely be bypassed.

In fact, both Mr. Carney and his predecessor David Dodge were essentially outsiders when they were appointed to head the central bank. And their successful tenures set a strong precedent for finding talent outside the institution.

Of course, Mr. Poloz is already a known quantity to Prime Minister Stephen Harper’s cabinet. He teamed with Finance Minister Jim Flaherty to engineer the CAD13 billion bailout of the auto industry in 2008-09, during the height of the downturn.

Although it remains to be seen if Mr. Poloz takes as pragmatic an approach as Carney, his initial statement should pacify those concerned about any monetary tightening. Mr. Poloz acknowledged the headwinds facing Canada’s economy and said the situation would require the central bank “to stimulate the economy for a certain amount of time.”

Bay Street Beat

Nine Canadian Edge Portfolio Holdings reported first-quarter 2013 earnings after the April issue was published. Here’s how Bay Street responded.

AltaGas Ltd (TSX: ALA, OTC: ATGFF) reported growth in first-quarter funds from operations (FFO) of 64 percent and hiked its quarterly dividend by 4.2 percent. However, the company missed consensus estimates for top-line growth by 6.2 percent.

Although EVA Dimensions downgraded the stock to “underweight,” the ratings mix was otherwise largely consistent with last month, with six “buys,” two “holds” and one “sell.” There was a slight bump in the 12-month price target, to CAD39.50, though that’s just 5.3 percent above where shares trade presently.

ARC Resources Ltd (TSX: ARX, OTC: AETUF) posted a 10.7 percent increase in funds from operations (FFO) for its first quarter.

The ratings mix remained largely static, while the 12-month price target rose moderately to CAD28.85, which is 6.9 percent above the current share price.

Colabor Group Inc’s (TSX: GCL, OTC: COLFF) first-quarter sales dropped 1.5 percent year over year, while its loss widened to CAD3.4 million from CAD736,000.

Desjardins Securities dropped its rating to a “sell” and slashed its 12-month price target 46.7 percent, to CAD4. TD Securities cut its rating to “reduce” and dropped its price target 57.1 percent, to CAD3. Scotia Capital lowered its rating to “sector perform,” while paring its price target 26.3 percent, to CAD7.

The consensus 12-month price target now stands at CAD5.35, which is just 2.3 percent above the current share price.

Newalta Corp (TSX: NAL, OTC: NWLTF) reported a 3 percent increase in revenue for its first quarter, but a 29 percent drop in funds from operations (FFO). Nevertheless, management believes its investment in growth projects will soon boost its results. As such, it chose to raise its quarterly dividend by 10 percent, to CAD0.11 per share.

The ratings mix remains unchanged at nine “buys” and one “sell,” though several analysts lowered their price targets. The new 12-month consensus price target is now CAD17.51, which is 26.5 percent above the current share price.

PetroBakken Energy Ltd’s (TSX: PBN, OTC: PBKEF) results were down slightly from a year ago. Both sales and funds flow from operations fell 4.5 percent year over year.

Raymond James lowered its rating to “market perform” and reduced its 12-month price target by 4.5 percent, to CAD11.

The consensus 12-month price target now stands at CAD11.09, which is 28.8 percent above the current share price.

RioCan REIT (TSX: REI-U, OTC: RIOCF) reported first-quarter earnings earlier this morning. Funds from operations (FFO) were up 20 percent year over year, to CAD124 million.

Thus far, BMO Capital Markets is the only firm to weigh in on these results. It affirmed its “market perform” rating and 12-month price target of CAD30.

The consensus 12-month price target is CAD30.12, just 2.4 percent higher than current share prices.

Shaw Communications Inc (TSX: SJR/B, NYSE: SJR) reported results for its fiscal second quarter (ended Feb. 28) in mid-April. Revenue rose 1.6 percent, while profits climbed 2.2 percent.

EVA Dimensions raised its rating to “overweight” from “hold,” but does not offer a 12-month price target. National Bank Financial lowered its rating to “underperform” and reduced its target price 4.3 percent, to CAD22.

The 12-month price target for Shaw’s stock is CAD23.46, which is just 1.5 percent above the current share price.

TransForce Inc (TSX: TFI, OTC: TFIFF) reported lackluster first-quarter earnings, with revenue falling 4.9 percent year over year, while profits dropped 37.4 percent.

Among the more noteworthy reactions: Desjardins Securities lowered its rating from “top pick” to “buy” and dropped its 12-month price target 11.1 percent, to CAD24; Laurentian Bank Securities cut its rating to “hold” and slashed its price target 16.7 percent, to CAD20; and National Bank Financial reiterated its “hold,” but cut its price target 12 percent to CAD22.

Meanwhile, Dundee Securities initiated coverage of the stock with a “buy” rating and a price target of CAD23.50.

The 12-month consensus price target for the stock is CAD22.83, which would mean a 16.2 percent gain from the current share price.

Vermilion Energy Inc (TSX: VET, OTC: VEMTF) generated first-quarter fund flows from operations that were 8 percent higher than a year ago. However, revenue was essentially flat, down just 0.3 percent year over year.

Salman Partners raised its rating to a “buy,” while increasing its price target by 4.2 percent, to CAD56.

The ratings mix was otherwise unchanged, though the consensus 12-month price target is slightly higher at CAD56.63, which is 10.8 percent above current share prices.

Below we detail some of the noteworthy ratings actions for companies that didn’t report earnings.

Artis REIT (TSX: AX-U, OTC: ARESF) was put on the “restricted” list at BMO Capital Markets, Raymond James, Scotia Capital and Macquarie. BMO, Raymond James and Macquarie previously rated the stock “outperform,” while Scotia rated it “sector perform.” The company is scheduled to report first-quarter earnings after the market’s close on Tuesday, May 7.

Atlantic Power Corp (TSX: ATP, NYSE: AT) finally had some good news on the ratings front, as analysts at RBC Capital Markets and Macquarie both raised their ratings to “hold” from “sell.”

Unfortunately, Macquarie also cut its target 13.1 percent, to CAD5.92. And CIBC World Markets lowered its target 12.2 percent, to CAD6.41.

The 12-month consensus price target is now CAD5.89, which is 25.3 percent above the current share price.

Bird Construction Inc’s (TSX: BDT, OTC: BIRDF) ratings mix continues to underscore the challenges the firm faces, with one “buy,” six “holds,” and one “sell.” Dundee Securities Corp initiated coverage of the stock with a “neutral” rating and a 12-month price target set at CAD15.

The latter helped bump the consensus 12-month price target to CAD14.29, which is 9.9 percent above the current share price.

Brookfield Renewable Energy Partners LP (TSX: BEP-U, OTC: BRPFF) was placed on the restricted list at Stifel, where it was previously rated “buy.” CIBC World Markets, Credit Suisse, and Cannacord Genuity Corp all reiterated their “hold” ratings, while TD Securities and RBC Capital Markets affirmed their “buy” ratings. The company reports first-quarter earnings on Wednesday, May 8, prior to the market’s open.

Dundee Securities Corp initiated coverage of Canadian Apartment Properties REIT (TSX: CAR-U, OTC: CDPYF) with an “outperform” rating and a 12-month price target of CAD27. That caused the consensus price target to inch up to CAD26.90, which is 4.2 percent above current prices.

Meanwhile, Raymond James reiterated its “outperform” rating, while Dundee Securities Corp reiterated its “buy” rating.

On April 29, Extendicare Inc (TSX: EXE, OTC: EXETF) announced that it was cutting its dividend 42.9 percent, for a new quarterly payout of CAD0.04 per share.

In the wake of this news, Byron Capital Markets lowered its rating to “hold,” while RBC Capital Markets cut its rating to “sector perform.”

Following the subsequent selloff, analysts slashed price targets across the board. The 12-month price target now stands at CAD6.25, which is 6.8 percent above the current share price.

National Bank Financial reiterated its “outperform” rating of EnerCare Inc (TSX: ECI, OTC: CSUWF), but raised its 12-month price target 9.1 percent, to CAD12. That modestly increased the consensus target to CAD10.70, which is 13.7 percent above the current share price.

Dundee Securities Corp initiated coverage of IBI Group Inc (TSX: IBG, OTC: IBIBF) with a “neutral” rating as well as a 12-month price target of CAD5.50, well below the consensus target of CAD6.13.

Although Keyera Corp’s (TSX: KEY, OTC: KEYUF) ratings mix held steady at eight “buys,” three “holds,” and one “sell,” its 12-month consensus price target jumped 6.4 percent, to CAD61.50. Unfortunately, that’s just 0.1 percent above the current share price.

Among the more significant increases in target price: Peters & Co Ltd raised its price target 8.3 percent, to CAD65; BMO Capital Markets boosted its price target 9.1 percent, to CAD60; Scotia Capital increased its price target 11.5 percent, to CAD58; and Macquarie upped its price target 13.8 percent, to CAD66.

BMO Capital Markets initiated coverage of Northern Property REIT (TSX: NPR-U, OTC: NPRUF) with a “market perform” rating and a 12-month price target of CAD33.50. Otherwise, the status quo prevailed, with Dundee Securities Corp reiterating its “buy” rating and a price target of CAD34.50.

Here’s how the CE Portfolio stacks up on Bay Street thus far for this earnings season.

The number of analyst “buy,” “hold” and “sell” ratings for each company are shown, followed by the average 12-month price target among the analysts that provide such guidance.

Conservative Holdings

• AltaGas Ltd (TSX: ALA, OTC: ATGFF)–6–2–1 (CAD39.50)
• Artis REIT (TSX: AX-U, OTC: ARESF)–4–1–0 (CAD17.81)
• Bird Construction Inc (TSX: BDT, OTC: BIRDF)–1–6–1 (CAD14.29)
• Brookfield Real Estate Services Inc (TSX: BRE, OTC: BREUF)–0–1–0 (CAD13.50)
• Brookfield Renewable Energy Partners LP (TSX: BEP-U, OTC: BRPFF)–7–4–0 (CAD33.00)
• Canadian Apartment Properties REIT (TSX: CAR-U, OTC: CDPYF)–8–3–0 (CAD26.90)
• Cineplex Inc (TSX: CGX, OTC: CPXGF)–7–6–0 (CAD34.40)
• Davis + Henderson Income Corp (TSX: DH, OTC: DHIFF)–3–5–0 (CAD23.36)
• Dundee REIT (TSX: D-U, OTC: DRETF)–4–2–0 (CAD41.63)
• EnerCare Inc (TSX: ECI, OTC: CSUWF)–4–2–0 (CAD10.70)
• Innergex Renewable Energy Inc (TSX: INE, OTC: INGXF)–8–3–1 (CAD11.20)
• Just Energy Group Inc (TSX: JE, NYSE: JE)–1–3–3 (CAD7.08)
• Keyera Corp (TSX: KEY, OTC: KEYUF)–8–3–1 (CAD61.50)
• Northern Property REIT (TSX: NPR-U, OTC: NPRUF)–4–4–2 (CAD33.87)
• Pembina Pipeline Corp (TSX: PPL, NYSE: PBA)–9–3–1 (CAD34.70)
• RioCan REIT (TSX: REI-U, OTC: RIOCF)–3–6–0 (CAD30.12)
• Shaw Communications Inc (TSX: SJR/B, NYSE: SJR)–5–9–5 (CAD23.46)
• Student Transportation Inc (TSX: STB, NSDQ: STB)–2–2–1 (CAD7.21)
• TransForce Inc (TSX: TFI, OTC: TFIFF)–9–2–0 (CAD22.83)

Aggressive Holdings

• Acadian Timber Corp (TSX: ADN, OTC: ACAZF)–1–2–1 (CAD13.63)
• Ag Growth International Inc (TSX: AFN, OTC: AGGZF)–3–6–1 (CAD34.33)
• ARC Resources Ltd (TSX: ARX, OTC: AETUF)–10–8–2 (CAD28.85)
• Atlantic Power Corp (TSX: ATP, NYSE: AT)–0–7–1 (CAD5.89)
• Chemtrade Logistics Income Fund (TSX: CHE-U, OTC: CGIFF)–2–4–0 (CAD18.00)
• Colabor Group Inc (TSX: GCL, OTC: COLFF)–1–2–2 (CAD5.35)
• Crescent Point Energy Corp (TSX: CPG, OTC: CSCTF)–19–3–1 (CAD46.11)
• Extendicare Inc (TSX: EXE, OTC: EXETF)–2–2–1 (CAD8.17)
• IBI Group Inc (TSX: IBG, OTC: IBIBF)–1–7–1 (CAD6.13)
• Newalta Corp (TSX: NAL, OTC: NWLTF)–9–0–1 (CAD17.51)
• Noranda Income Fund (TSX: NIF-U, OTC: NNDIF)–1–0–0 (CAD8.00)
• Parkland Fuel Corp (TSX: PKI, OTC: PKIUF)–5–4–0 (CAD19.03)
• PetroBakken Energy Ltd (TSX: PBN, OTC: PBKEF)–11–9–2 (CAD11.09)
• Peyto Exploration & Development Corp (TSX: PEY, OTC: PEYUF)–11–6–2 (CAD30.80)
• Vermilion Energy Inc (TSX: VET, OTC: VEMTF)–12–5–1 (CAD56.63)
• Wajax Corp (TSX: WJX, OTC: WJXFF)–2–8–0 (CAD39.89)