The Globe and Mail reports in its Friday, May 3, edition that Scotia Capital analyst Michael Doumet has reaffirmed his "sector outperform" call on Wajax. The Globe's David Leeder writes in the Eye On Equities column that Mr. Doumet trimmed his share target by $2 to $35. Analysts on average target the shares at $34.67. Mr. Doumet says in a note: "While underlying trends slowed, the miss was not nearly as bad as it looked (and certainly does not justify a 20-per-cent reduction in the shares, in our view). Instead, Q1 should be viewed as the 'ultimate' lumpy quarter. This is how we see it: (I) Hitachi provided favorable terms to Wajax to pull-forward Q2 inventory purchases into Q1 (which it did) just as (ii) customer delayed orders into Q2 (evidenced by the higher backlog) and (iii) as customers more heavily relied on RPOs (which should eventually convert into purchases). For a dealer, lower sales and higher inventories is not something investors ever want to see. But that one-two punch Wajax took in Q1 should be reversed within the next six months. We expect equipment sales to normalize as early as Q2. And, we believe inventories should decline $100-million (the same increase as seen in Q1) by Q3."