UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on FirstService Corporation on Q1/13 Earnings Preview

In a report published Friday, BMO Capital Markets analyst Stephen MacLeod reiterated a Market Perform rating on FirstService Corporation

, and raised the price target from $32.00 to $35.00. In the report, MacLeod noted, “FirstService will release Q1/13 results and host a conference call on April 26, 2013. We are forecasting EPS of ($0.11) vs. ($0.10) last year and consensus of ($0.03). On a year-over-year basis, we expect results to be negatively impacted by Colliers U.K. (acquired in late Q1/12), which historically has generated a seasonal loss in Q1, and lower earnings from Field Asset Services. Partially offsetting this is expected mid-single-digit top-line and EBITDA growth in Residential Property Management and low double-digit growth in the Franchise Group. We have also adjusted our financial forecasts to reflect two recent announcements: 1) the acquisition of Colliers Germany (providing FirstService with a company-owned presence in an important Western European market); and 2) the expected elimination of preferred shares and establishment of a common share dividend (1.2% yield), which simplifies the capital structure and could lead to interest from dividend-oriented investors.” FirstService Corporation closed on Thursday at $33.01.