Inside the Market’s roundup of some of today’s key analyst actions
Expecting the turnaround of its U.S. operations to continue and pointing to its “proven track record of ROE expansion,” National Bank Financial analyst Gabriel Dechaine upgraded Sun Life Financial Inc. (SLF-T) to an “outperform” rating from “sector perform” ahead of the release of its first-quarter financial results on May 6 after the bell.
“SLF’s U.S. segment reported cumulative experience losses ofUS$156mln between Q4/24 and Q3/25,” said Mr. Dechaine. “They were mainly incurred in the Stop Loss business, reflecting a combination of higher-than-expected claims incidence and severity. SLF had hiked pricing on its Jan. 1, 2025 cohort by 14 per cent, reflecting the negative experience that began in 2024. However, it fell about 2 per cent short of what was required. Management stated that it had implemented another price hike on its Jan. 1, 2026 cohort of 17 per cent. Despite higher pricing, it still recorded sales during Q4/25, signalling that pricing was not only being achieved, but that similar (or higher) repricing being implemented by competitors was driving business towards SLF.
“In short, we believe the combination of repricing initiatives and improved claims management processes should result in a strong start to the year for the Stop Loss business. We have adjusted our forecast to reflect experience gains from the U.S. segment, as opposed to experience losses, previously.”
In a client note released Friday, Mr. Dechaine did warn Sun Life’s asset management subsidiary MFS Investment Management
“Equity markets were supportive of the asset management industry during Q1/26, with the average S&P 500 level up 1 per cent and the MSCI EAFE Index, which is more relevant to MFS, up 6 per cent,” he said. “However, our outlook for MFS is cautious, reflecting: 1) MFS’s Q1 operating margins are generally lower, due mainly to the seasonality of expenses; 2) disclosed AUM decline of 4.5 per cent in Q1/26, which we estimate will result in a quarterly average AUM [assets under management] drop of 1.5 per cent; and 3) net outflows will likely be higher than initially expected. On the latter point, based on MFS’s AUM data, we estimate net outflows in a range of $15-$20-billion, which is above our initial $12-billion outflow forecast.”
After raising his valuation multiple for shares of Sun Life, Mr. Dechaine raised his target $109 from $99. The average target on the Street is $98, according to LSEG data.
The analyst maintained his ratings and targets for Sun Life’s peers. They are:
- Great-West Lifeco Inc. (GWO-T) with a “sector perform” rating and $65 target. The average is $69.33.
- IA Financial Corp. Inc. (IAG-T) with a “sector perform” rating and $181 target. Average: $178.33.
- Manulife Financial Corp. (MFC-T) with an “outperform” rating and $57 target. Average: $55.70.
- Sagicor Financial Co. Ltd. (SFC-T) with an “outperform” rating and $13 target. Average: $12.47.
“The average Canadian Lifeco stock is underperforming the S&P/TSX by 200 basis points so far this year and is trailing the average Big-6 bank by 630 basis points,“ Mr. Dechaine concluded. ”This underperformance spread could have been even wider if not for SLF’s strong year-to-date performance (i.e., only Lifeco to outperform the S&P/TSX), which we attribute mainly to a ‘relief rally’ following signs of a turnaround in its U.S. Group business reported during Q4/25.
“In our view, this performance reflects the following factors: 1) domestic investor preference for Canadian bank stocks; and 2) a lack of visible catalysts, with the group having upped ROE targets in recent years, and made steady progress towards them. As it relates to the ‘fund flows’ argument, we do not believe that tide will shift unless the market sees some negative developments in Canadian bank results (e.g., consumer credit deterioration). As it relates to the latter, we tend to agree. However, the exception to this argument is MFC. After a relatively flattish core ROE expansion trajectory during fiscal 2025, we believe it could accelerate its path towards its 18% target ROE in 2026. The key driver of such an outcome would be continued improvement of mortality trends in the U.S. business, which we believe is the key catalyst from its Q1/26 results.”
Scotia Capital analyst Jonathan Goldman likes the setup for the automotive industry for the remainder of the year, leading him to take a bullish view of parts manufacturers heading into earnings season.
“The pros (resilient sales + OBBB [One Big Beautiful Bill] + easy production comps + low inventory + mix tailwind + cost control + capital deployment) outweigh the cons (recession risk; Kalshi/Polymarket odds 26 per cent) making us more comfortable in the earnings trajectory this year while depressed valuations round out an attractive risk/reward,” he said.
In a client report released before the bell, Mr. Goldman argued “wealthy consumers are propping up the auto market.”
“Thus far, LVS and LVP forecasts have been resilient, alleviating some of our concerns around affordability, a key reason that has kept us on the sidelines,” he added. “Wealthy households accounted for 43 per cent of new car sales in 2025, up from 33 per cent in 2019 according to Cox Automotive. That should be a tailwind to mix as we believe more affluent customers tend tobuy higher content pickup trucks and SUVs, reflected in increasing ASPs.
“The biggest overhang on the sector is potential ripple effects from the Middle East conflict (inflation, consumer confidence, higher vehicle opex), but there are offsets: 1) dealer inventories are already low at 48 days and LVP is lapping an easy comp; 2) OBBB tax refunds have lined consumers’ pockets with $240-billion, with 40 per cent of taxpayers yet to file, suggesting a significant volume of refund dollars yet to come; 3) mix could be a tailwind; 4) our coverage has various degrees of self-help levers and B/S optionality; and 5) valuations are attractive with MGA/LNR [Magna/Linamar] trading at double-digit FCF yields.”
Mr. Goldman emphasized his analysis found that “oil price shocks alone do not lead to material auto demand destruction,” calling it a “chicken and the egg” scenario.
“We found a weak negative relationship between WTI and SAAR (down 0.1 per cent); and diesel and SAAR (down 0. per cent); going back to the 1980s and 2). That said, oil price shocks tend to accompany recessions (1973–1974 Arab Oil Embargo; 1979–1980 Iranian Revolution & Iran-Iraq War; 1990–1991 Gulf War; 2007–2008 Oil Crisis), which is when SAAR falls precipitously," he explained. “In the event of a deep and protracted economic downturn, similar to the early 1980s, early 1990s, and 2008/2009, industry sales would likely see meaningful declines and take multiple years to recover. On average, volumes declined 30-per-cent peak to trough and took 30 months to recover to pre-recessionary levels. Historically, jobs have been a better predictor of new car sales.
“We believe the short-run impact of higher oil prices are more likely mix shift to smaller, more fuel-efficient cars. However, wealthy consumers are supporting auto sales and affluent households tend to purchase higher ticket pickups and SUVs.”
With that view, Mr. Goldman upgraded his rating for shares of Magna International Inc. (MGA-N, MG-T) to “sector outperform” from “sector perform” previously, calling it “partly a sector call and partly improving execution on costs and capital.”
“We expect volumes to be resilient and Magna was already a really good cost-out story,” he said. “We see upside to operational excellence this year based on 4Q commentary, i.e., ‘We’ve talked about 35-40 basis points in a neutral environment. I think as we’re looking at 2026, likely doing a little bit better than that’. Main drivers of margin expansion in 2026 (up 70 basis points year-over-year at the midpoint) are volume agnostic, including continuous improvement, cost savings, ‘Factory of the Future’ initiatives, and normal course customer price concessions. We are not concerned about energy inflation in Europe as the company hedged its exposure post-2022.
“The company recently announced the divestiture of its lighting and rooftop systems businesses, which is expected to be EPS neutral and should accelerate deleveraging. More importantly, it signals a willingness to allocate capital to the highest areas of return – such as being active on the buyback, repurchasing 5.6 million shares in 1Q (2 per cent of shares outstanding). Recall, the company is looking to repurchase the remaining 22 million shares under the NCIB this year. Shares trade at a 10.5-per-cent FCF yield on our 2026E, well above our coverage average of 5.6 per cent."
Mr. Goldman raised his target for Magna’s NYSE-listed shares to US$72 from US$69. The current average is US$62.17.
At the same time, he’s staying “sidelined” on peer Linamar Corp. (LNR-T) “due to incremental headwinds from S232 in Industrial, which could dilute strong Mobility performance.”
“That said, we see upside risk to LNR 1Q consensus,” he added.
His target slid to $96 from $99 with a “sector perform” rating. The average is $104.25.
Following the release of first-quarter results that narrowly exceeded his forecast, National Bank Financial analyst Cameron Doerksen thinks market trends are appearing “more positive” for Mullen Group Ltd. (MTL-T).
“The key takeaway from the Q1 report is management’s more positive view of market conditions noting that in March demand was solid, and trucking supply tightened resulting in one of the best months Mullen has seen in a while,” he said. “Tighter trucking capacity in the U.S. due to regulatory actions is evident in the company’s U.S. logistics business and on cross-border activity. In Canada, capacity is not yet declining significantly, but a Canada-wide crackdown on illegal ‘Driver Inc.’ and other regulatory enforcement is having a positive impact on pricing. There could be upside to management’s 2026 financial targets (re-affirmed) should some ‘nation-building’ projects move ahead this year.”
Shares of the Okotoks, Alta.-based logistics provider jumped 6.8 per cent on Thursday after it reported revenue of $547.7-million, up 10.2 per cent from $497.1-million a year ago and topping both Mr. Doerksen’s $534-million estimate and the consensus of $549-million. Adjusted earnings per share of 20 cents was a decline of a penny year-over-year but also ahead of expectations (17 cents and 19 cents, respectively).
“At the end of Q1, Mullen had $142-million in cash on hand and the full $525 million available on its credit facility,” the analyst said. “In Q1, the company completed two small acquisitions in the S&I [Specialized & Industrial Services] segment for a total consideration of $22-million. We expect the company to continue to be active in pursuing acquisitions with the focus likely to be in the S&I segment where management sees good opportunities should energy-related projects advance in Western Canada.”
Reiterating his “outperform” rating for Mullen shares, Mr. Doerksen raised his target to $23 from $19. The average is $18.33.
“Our positive view is based on: (1) we are increasingly optimistic that trucking rates will improve in 2026 due to regulatory/enforcement changes; (2) we see Mullen as well-positioned to capitalize on new business related to the advancement of ‘nation-building’ and other infrastructure projects in Western Canada; and, (3) with a strong balance sheet, the company is well positioned for further M&A growth,” he said.
Elsewhere, other analysts making adjustments include:
* Desjardins Securities’ Benoit Poirier to $23 from $20 with a “buy” rating.
“The Canadian trucking market has yet to tighten meaningfully. However, stepped-up federal enforcement (eg Driver Inc loophole, surprise inspections and closing unsafe training schools) is nudging bad actors into compliance. While this has not reduced capacity, it should improve pricing over time. Combined with a potential Alaska LNG win and pickup in O&G activity, the outlook has improved materially across both energy and non-energy segments of MTL’s business, prompting an increase in our estimates and multiples,” said Mr. Poirier.
* TD Cowen’s Tim James to $24 from $21 with a “buy” rating.
“Q1 results & commentary support our view that ’26 should see improving EBITDA growth (up 13 per cent) despite a still tepid demand environment. Upside potential exists for late ’26 but more significantly for 2027 due to M&A, Nation Building projects, and the Alaska LNG pipeline opportunity. Thematic appeal should narrow historically large discount vs. comps. Our positive investment thesis remains unchanged,” said Mr. James.
* Acumen Capital’s Trevor Reynolds to $22 from $20.50 with a “buy” rating.
“MTL highlighted a very strong month of March with solid demand and tightening supply which provide evidence that the long-awaited freight recession is nearing an end. While the ongoing conflict in the middle east has introduced some uncertainty, management’s optimism around the outlook has increased. Near to medium term potential catalysts include a current bid on a major pipeline/LNG project in Alaska, Nation Building Projects in Canada, and tightening supply,” said Mr. Reynolds.
* Scotia’s Konark Gupta to $21 from $19 with a “sector perform” rating.
" Q1 was broadly in line, considering de-marketing and weather effects. Management maintained outlook for now despite a strong March and tightening supply in the freight markets, pointing to the differences between Canada and the U.S., macro vulnerabilities from fuel and geopolitics, and upside risk from future opportunities (e.g., Alaska LNG and M&A). We believe the downside risk to fundamentals has reduced, owing to government policies on both sides of the border, although trucking valuation multiples have significantly expanded in a short span of time as investors have turned quite bullish well before management teams. This warrants some caution (i.e., multiple compression risk), in our view," said Mr. Gupta.
* CIBC’s Kevin Chiang to $20 from $18 with a “neutral” rating.
“MTL reported Q1/26 results that were generally in line with expectations. While the freight environment has remained pressured, we view MTL’s continued focus on disciplined capital allocation and selective M&A as strategically constructive,” he said.
* Raymond James’ Michael Barth to $18 from $17 with a “market perform” rating.
“MTL 1Q26 results were largely uneventful, although there is certainly some emerging optimism around economic growth and a tighter trucking market. Our estimates move modestly higher and our target follows, but with MTL trading at a 7-per-cent sustaining FCF yield on our FY26 estimates, we view value as fair and maintain our Market Perform rating,” said Mr. Barth.
* RBC’s Walter Spracklin to $21 from $19 with an “outperform” rating.
“MTL delivered an in-line Q1, with record revenue against a limited- growth macro backdrop. Management reaffirmed full-year guidance and our EBITDA estimates remain unchanged. While the near-term environment remains cautious, we view the improving freight outlook positively, with March trends pointing to a potential strengthening freight environment. Key upside levers not embedded in guidance include strategic M&A, operating leverage on any volume recovery, and the (newly disclosed) Alaska LNG opportunity,” said Mr. Spracklin.
Raymond James analyst Daryl Swetlishoff said his expectations for the first-quarter “highlight a clear EBITDA inflection across lumber producers, with meaningful sequential improvement driven by stronger pricing and healthy utilization.”
“We expect lumber-levered companies under coverage to meet or exceed consensus, with West Fraser, Interfor, and Canfor tracking well ahead of Street expectations,” he said in a client report released Friday. “Near-term fundamentals remain supportive into 2Q, backstopped by firm order files and 7–19-per-cent quarter-to-date lumber price gains - setting up for a potential step-change in earnings and positive FCF-inflection for select names."
While also believing “the duty backdrop is poised to turn more constructive in the back half of the year,” Mr. Swetlishoff cautioned “seasonal softening in building materials pricing into the summer could weigh on sentiment” despite his “more constructive” near-term earnings outlook .
With his updated commodity outlook and “cautious near-term view on fundamentals,” he downgraded a trio of stocks:
- Canfor Corp. (CFP-T) to “outperform” from “strong buy” with a $17 target. The average on the Street is $15.84.
- Interfor Corp. (IFP-T) to “outperform” from “strong buy” with a $13 target, down from $14. Average: $13.33.
- West Fraser Timber Co. Ltd. (WFG-N, WFG-T) to “market perform” from “outperform” with a US$75 target, down from US$85. Average: US$81.78.
“At the same time, we reiterate our seasonal framework favours rotation into diversified industrials. Accordingly, we are maintaining our Strong Buy ratings on ADENTRA and Doman Building Materials on the back of seasonal tailwinds, improving volumes, and a favourable M&A backdrop (supported by strong balance sheets and available dry powder) - setting up for relative outperformance into 2Q/3Q,” he added.
While its first-quarter results were stronger than anticipated first-quarter results alongside “an improving operational outlook,” National Bank Financial analyst Shane Nagle expects Teck Resources Ltd. (TECK.B-T) shares “will continue to trade in line with the Anglo American offer until the transaction is closed.”
Teck CEO Jonathan Price says no plans to immediately sell ‘valuable’ Fourmile royalty
The Vancouver-based company’s shares rose 2.8 per cent on Thursday after its quarterly results topped both the estimates of both Mr. Nagle and the Street “due to stronger than expected sales as well as lower operating costs.” Adjusted earnings per share of $1.75 blew past the analyst’s 99-cent projection and the consensus expectation of $1.13.
Teck also maintained its 2026 guidance “as Q1 indicated a strong start to the year with the company achieving 28.4 per cent of the midpoint of the copper production guidance range and C1 cash costs below the 2026 guidance range.”
“In Q1/26, there were several signs of consistent performance at QB2 as throughput improvement in March indicated that the concentrator is operating as expected under stable conditions, with Q1 variability primarily attributable to temporary system instability following a planned shutdown in February,” he added. “Teck received approval from Investment Canada on the proposed merger with Anglo in December and both parties continue to work collaboratively toward securing required regulatory approvals to close the transaction.”
S&P mulls rule change to keep Teck in Canadian benchmarks after Anglo merger
Moving forward, Mr. Nagle sees the company’s balance sheet as “strong” as it awaits progress on the Anglo transaction.
“Teck ended Q1/26 with $5.4-billion in cash, $7.6-billion in working capital, and $4.33-billion in long-term debt and lease liabilities, supported by strong operating cash flow and record copper sales volumes,” he said. “Liquidity of $9.8-billion remains strong entering a capital-intensive year, while Teck and Anglo American continue to work toward securing the remaining regulatory approvals required to close the transaction before year-end.”
Keeping his “sector perform” rating, Mr. Nagle raised his target to $92.50 from $90, citing “stronger operational performance across the portfolio.” The average is $81.77.
"We have updated our model to incorporate Q1/26 financial and operating results and our increase in costs on consumable inflation has been offset by improved performance at QB2, leading to a minimal change in our EBITDA and FCF forecasts for the remainder of the year," he added.
“Continued work on the QB tailings facility and anticipated downtime will suppress cash flow for Teck throughout 2026; however, progress remains on schedule to improve throughput by 2027 ahead of targeting more meaningful operational synergy opportunities with Collahuasi providing some upside to our Base Case estimates.”
Elsewhere, other changes include:
* TD Cowen’s Craig Hutchison to $82 from $80 with a “hold” rating.
“We view the strong Q1 result as supportive of our medium-term outlook, with Teck demonstrating strong operational execution following reset expectations, and robust free cash flow generation supported by strength across the portfolio. While we do view shares as fully valued, QB execution risk continues to decline and the net-cash balance sheet remains well positioned,” he said.
* Canaccord Genuity’s Dalton Baretto to $85.50 from $78 with a “hold” rating.
“The results are clearly positive, although neutral to the broader investment thesis, given that the merger with AAL is in its final stages. QB2 appears to have finally turned the corner, with no more impacts on mill performance from delays to raising the TSF dam. Trail appears to have entered a new phase of profitability, given strong market pricing for its by-product metals (Ag, Sb, Ge and Ga). No changes were made to the previous reported guidance, despite the strong early-year performance,” he said.
* Raymond James’ Brian MacArthur to $80 from $78 with a “market perform” rating.
“We believe Teck offers investors good exposure to energy transition metals with numerous internal growth options,” said Mr. MacArthur.
* CIBC’s Anita Soni to $83 from $79 with a “tender” rating.
In other analyst actions:
* Citing “a longer runway to organic revenue reacceleration and limited near-term catalysts,” Scotia’s Kevin Krishnaratne downgraded Alithya Group Inc. (ALYA-T) to “sector perform” from “sector outperform” with a $1.50 target, down from $2. The average on the Street is $2.52.
“Our downgrade reflects: (1) softer near-term organic trends in the Canadian segment (down 16.6 per cent year-over-year in Q3) as the company executes a deliberate shift away from lower-margin Quebec work toward higher value transformational services; (2) continued weakness in US operations which materially underperformed in Q3/26 (down 2.2 per cent organic ex-FX vs. our expectations of up 10 per cent) and which we model at down 5 per cent in Q4; and (3) our more cautious IT sector view. Our revenue forecast now calls for organic growth ex-FX to turn positive sometime in Q2 (Sept.) vs. our prior view of Q1 (June),” he explained.
Mr. Krishnaratne also trimmed his target for shares of CGI Inc. (GIB.A-T) to $120 from $140, keeping a “sector perform” rating.
* Touting potential upside if an earlier agreement to restart Cobre Panama can be reached, JPMorgan’s Patrick Jones upgraded First Quantum Minerals Ltd. (FM-T) to “neutral” from “underweight” with a $37 target, up from $28 but below the $44.52 average on the Street.
* Expecting an in-line quarter when Brookfield Renewable Partners L.P. (BEP.UN-T) reports results on May 1, Desjardins Securities’ Brent Stadler increased his target for its units to $48 from $45 with a “hold” rating. The average is $49.17.
“We expect an in-line quarter from BEP and have raised our FFO/unit estimate to US$0.51 (from US$0.50), which is in line with the Street. We expect higher other income (largely capital recycling gains) to offset generation below long-term averages. With the results, we expect BEP to provide colour on the renewables and nuclear outlook, power demand (including driven by AI data centres), updates on partnerships and M&A. We believe BEP is positioned to achieve 10-per-cent-plus FFO/unit growth in 2026 and beyond,” he said.
* Predicting “strong offshore wind speeds should drive a beat,” Mr. Stadler raised his target for Northland Power Inc. (NPI-T) to $23 from $21 with a “hold” rating, “looking for updates on construction projects and growth outlook.” The average is $24.50.
“We expect that offshore wind speeds were strong in 1Q26 (3–5 per cent ahead of long-term averages),” he said. “We have increased our EBITDA estimate to $444-million (from $419-million) and we are now 3 per cent ahead of consensus. With the quarterly results, we will be looking for construction updates on Hai Long and Baltic Power, and projects in the pipeline that can drive the next phase of growth. After derisking Hai Long and Baltic Power, we have increased our target.”
* CIBC’s Tal Woolley initiated coverage of Canadian Net REIT (NET.UN-X) with a “neutral” rating and $7 target, exceeding the $6.75 average.
“NET’s fully-occupied, triple-net lease model supports stable cash flows and a defensive earnings profile. Low capital requirements generate approximately $5-$6-million of annual excess free cash flow, providing financial flexibility to delever and manage upcoming mortgage maturities. A conservative payout ratio leaves room to sustain and potentially increase distributions over time,” he said.
* After a “strong” first quarter and emphasizing growth is anticipated for 2026 despite a “challenging backdrop,” TD Cowen’s Tim James’ raised his FirstService Corp. (FSV-Q, FSV-T) target to US$204 from US$201 with a “buy” rating, while Scotia’s Himanshu Gupta cut his target to US$190 from US$205 with a “sector outperform” rating.. The average is US$207.
“Accelerating organic growth, relative earnings resilience, unchanged risk profile, medium to long-term (positive) outlook and strong balance sheet suggest valuation should move higher, towards historical averages as opposed to historical lows vs comps. Potential for incremental shareholder value not in forecasts from M&A and weather. Our bullish view remains unchanged,” he said.
* Desjardins Securities’ Allison Carson initiated coverage of GoGold Resources Inc. (GGD-T) with a “buy” rating and $5.50 target, exceeding the $5.12 average.
“GoGold is a multi-asset silver developer with assets in Mexico and a significant production growth profile. The company benefits from its cash-flowing Parral tailings operation, which continues to support its strong balance sheet, enabling it to self-fund its projects. With near-term catalysts on the horizon, including receiving permits and construction at Los Ricos South, we expect 2026 to be a catalyst-rich year,” she said.
* In a note titled Still Room to Run?, Raymond James’ Luke Davis hiked his Obsidian Energy Ltd. (OBE-T) target to $19 from $14 with an “outperform” rating. The average is $14.49.
“We’re revisiting Obsidian following a recent run that defies gravity with the stock up 37% since our upgrade less than a month ago (note here). Given the current pricing environment reinvigorates the company’s ability to move forward with broad delineation of their Peace River land base and operational leverage magnifies the cash windfall, we can clearly see the rationale for a ‘catch up trade’ under what was historically a heavily discounted valuation. That said, we now think there is quite a lot built in; we have revised our target price to $19/share, adjusting risk factors across each asset and bringing forward what we previously treated as Clearwater option value. While we remain constructive, OBE has moved down our pecking order on valuation,” said Mr. Davis.
* Desjardins Securities’ Bryce Adams initiated coverage of Pecoy Copper Corp. (PCU-X) with a “buy” rating and $4 target. The average on the Street is $3.
“We view Pecoy as an attractive copper explorer-developer advancing its single project (low-altitude Peru) with strong resource upside potential, a solid foundation for future economic studies and longer-term takeout potential. At current trading levels, PCU shares offer compelling investor appeal,” said Mr. Adams.
* Ahead of the release of its first-quarter results on May 12, National Bank’s Vishal Shreedhar trimmed his target for Pet Valu Holdings Ltd. (PET-T) to $27 from $28 with a “sector perform” rating, “looking for slight improvement in sales amid subdued industry backdrop.” The average target is $31.86.
“The pet industry has historically been characterized by stable growth; however, we believe the current pressured backdrop (tepid consumer and heightened industry competition, etc.) is unfavourable for premium-priced retailers (motivates trade down),” he said. “We look for PET to gain traction with its initiatives.
“We model 7-per-cent year-over-year EPS growth (on a 52-week basis) in 2026E at $1.69 (in line with consensus), largely reflecting: (i) 3.4-per-cent year-over-year revenue growth (1.0-per-cent same-store sales growth, 36 new store openings), and (ii) Flattish EBITDA margin (at 21.9 per cent; distribution expense leverage and cost-saving initiatives, offset by higher wholesale penetration, higher marketing/promotions and higher compensation expense), among other factors.”
* JPMorgan’s John Ivankoe raised his price target on Restaurant Brands International Inc. (QSR-N, QSR-T) to US$80 from US$77, keeping an “overweight” rating. The average is US$81.63.
* Believing its “setup remains favourable,” RBC Dominion Securities’ Sabahat Khan raised his Waste Connections Inc. (WCN-N, WCN-T) target to US$218 from US$210 with an “outperform” rating. The average is US$202.24.
“Waste Connections reported Q1 Adj. EBITDA/EPS ahead of Street forecasts, while 2026 guidance was reiterated. Overall, we believe WCN remains well-positioned for 2026, with guidance remaining a conservative starting point given the strong start to the year, with upside potential from higher commodity prices (supportive of the E&P business, Recycling prices beginning to move in the right direction), a more supportive macro backdrop (SW volumes up for the 6th consecutive quarter, potentially indicating some pent-up demand), and M&A (pipeline robust),” said Mr. Khan.