Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Energy infrastructure
BMO analyst Ben Pham released his list of top picks in the yield-heavy energy infrastructure sector,
“We are rolling forward our valuation base to 2028 vs. 2027 and introducing our 2029 estimates. Generally, target prices move lower as higher interest rate expectations/valuation friction more than offset anticipated year-over-year growth into 2028. There are no rating changes, but we are updating our Top 3 Best Ideas roster: TRP is now our new Top Pick (OP [’outperform]; $99 target unchanged), followed by ALA (OP; new $60 target vs. $59), and ACO.X (OP; new target of $90 vs. $85). Previously, we positioned Top 3 as: KEY, TRP, and TA”
PM Carney’s plan to spur investment
BMO economist Robert Kavcic assessed the importance of PM Mark Carney’s use of accounting policy to spur private sector investment,
“Ottawa’s announcement that it will allow immediate expensing of major capital spending on a wider range of investment is a significant policy move that broadens out prior measures. This fits right in with the more pro-growth policy agenda and reinforces Canada’s attractiveness as a jurisdiction to invest. Note that capital investment has been firm in Canada in recent years, but growth has been mostly on the back of the public sector. Provinces and the federal government have been running large capital spending programs in areas such as health care infrastructure, education and transportation—a lot of this is playing catch-up to the population boom. The private sector has lagged, with growth relatively muted since oil prices collapsed and shuttered the 2014 capex boom. This is where a more favourable tax environment can come into play and do some rejuvenating across a wide spectrum of industries”.
Copper bull
RBC Capital Markets analyst Sam Crittenden is bullish on copper miners,
“Copper prices have pulled back to $6.37/lb currently from the recent record highs ($6.74/lb on September 8) after a Reuters report suggested the U.S. is wary of implementing tariffs due to concerns around rising costs. However, fundamentals remain strong with supply struggling to match growing demand, and we expect the market to remain tight as the large US inventory is unlikely to be re-exported due to export costs and lingering tariff uncertainty. We have raised our copper forecast to $6.50/lb for Q3 and $6.25/lb for Q4 (from $5.75/lb), as we expect low inventories and solid demand to keep prices above $6.00/lb. We maintain our medium-term forecast of $6.00/lb starting in 2027 as we expect supply to increase; however, accelerating disruptions and growing demand from new sources could push prices higher … We see upside catalysts in our preferred names including First Quantum where a potential restart in Panama could happen within the next few months, and near-term growth could drive re-ratings for both Capstone [CS-T] and Hudbay [HBM-T]”
Bluesky post of the day
Dear @mark-carney.bsky.social, we want to bring the relationship with Canada to the highest level possible. I would like to work with you on opening the door for Canada to being the first associate member of the EU. And create a common prosperity and economic security space.
— Ursula von der Leyen (@vonderleyen.ec.europa.eu) September 16, 2026 at 4:27 AM
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Diversion
“These Robot Soldiers Are Getting Downright Terrifying” - Futurism