Inside the Market’s roundup of some of today’s key analyst actions
Desjardins analyst Benoit Poirier says he supports the transaction announced last night that will see Aecon Group Inc. (ARE-T) purchase Oaktree’s convertible preferred equity investment in Aecon Utilities (AU) for C$320 million, restoring its 100% ownership. He raised his price target to C$55 from C$52 but maintained a “hold” rating.
“Aecon now regains strategic and operational control of the full upside potential of the utilities business. We expect the balance sheet to remain in great shape,” Mr. Poirier said in a note to clients.
“We now forecast C$1.61 adjusted FD [fully diluted] EPS for FY26 and C$2.01 for FY27, up from C$1.50 and C$1.94, respectively,” he added.
“ARE regains strategic and operational control of the full upside potential of the utilities business, which is poised to benefit from a strong industry backdrop. Utilities have historically generated ~9–10% EBITDA margins compared with ARE’s ~5% consolidated margins. Additionally, the transaction allows ARE to save on PIK interest that it would have had to pay. The 13x multiple paid sits within the 12–16x FY26 range for comparable shorter-cycle maintenance peers and supports revising upward our sum-of-the-parts (SOTP) multiple for AU. Concretely, this results in immediate accretion, and we model leverage to remain at a comfortable place, ending 2026 at 1.7x and 2027 at 1.1," the analyst said.
Elsewhere, TD analyst Michael Tupholme cut his price target to C$61 from C$62, explaining that the cost of purchasing the preferred shares was above his estimates for carrying value. Stifel analyst Ian Gillies upgraded the stock to a “buy” from “hold” and hiked his target to $54 from $46. And Raymond James analyst Frederic Bastien cut his price target to C$52 from C$54 and maintained a “market perform” rating.
For more on the announcement, and analyst reaction to it, see our small-cap stocks to watch report.
TD Cowen analyst John Shao hiked his price target on BlackBerry Ltd. (BB-N) to US$8 from US$5 to reflect the strength seen at the start of the company’s fiscal 2027. Shares of the company spiked nearly 20% on Thursday.
“Following the material FQ1 beat, we have raised our estimates to reflect commentary around a healthy outlook for both SC and QNX,” Mr. Shao said in a note to clients. “We sensed rising optimism on larger SC deals in the pipeline, and expanding licence revenue supports acceleration within QNX. On profitability, as the majority of investment in S&M for QNX was rolled out this quarter, we model a modest increase in opex and evident operating leverage ahead. Our new expectations land above the higher end of the guide as we believe management are continuing to exercise conservatism on the outlook.”
“Our SC multiple is now 9.5x-10.0x our C2027 EBITDA estimate (from 9.0x) and QNX is 40.0x-40.5x (from 32.0x). We see the discount to larger and mature SC peers at 32.3x C2027 EBITDA as being justified, while the increased QNX multiple reflects improved execution and large Alloy Kore deals in the pipeline to potentially move the needle,” he added.
Despite the healthy hike to his price target, he is maintaining a “hold” rating.
“While we see BlackBerry as well positioned to benefit from Physical AI should the opportunity materialize, the stock has risen materially over the past two months (~100%). We believe the rally has been supported in part by improved execution and a corresponding valuation re-rating, but more importantly reflects elevated expectations around Physical AI as an early-stage theme. Given these expectations, we anticipate continued near-term volatility. As such, we view the current risk-reward as balanced,” he said.
Elsewhere, Raymond James analyst Steven Li raised his price target to US$9.50 from US$4.75 and maintained a “market perform” rating.
Read more from the Globe’s Sean Silcoff: BlackBerry sheds dubious label as shares soar on rosy results and outlook
National Bank analyst Cameron Doerksen raised his price targets on both of Canada’s major railways as he increased his valuation multiples to reflect multiple expansion among their North American peers.
Canadian National Railway Co.’s (CNR-T) target went to C$173 from $164, while Canadian Pacific Kansas City Ltd.’s (CP-T) went to C$132 from C$125. CN is rated “sector perform” and CPKC “outperform.”
“Shares of both CN and CPKC have performed well so far in 2026 (CNR up ~26% and CPKC up ~22% versus S&P TSX up ~10%) and in our view valuations have become less compelling,“ Mr. Doerksen said in a note to clients.
Overall, the analyst said he continues to have a “marginal” preference for CPKC over CN.
“We expect Q2 results for both CN and CPKC to be largely in line with current street expectations, and we expect both railroads to reiterate full-year guidance,” he said.
“CN sports a lower valuation while CPKC enjoys a superior earnings growth profile for 2026 and 2027. In addition, in our view, with its higher exposure to bulk volumes and lower exposure to Canada-U.S. cross-border trade, CPKC shares arguably face lower sentiment headwinds around USMCA uncertainty than does CN. On our updated forecast, CN shares trade at 22.1x 2026 P/E (19.7x 2027) while CPKC trades at 24.6x 2026 (21.5x 2027) versus the U.S. peer group at 23.9x 2026 and 21.4x 2027 on average,” Mr. Doerksen said.
Analysts at Barclays also raised their price targets on the Canadian rails. CN Rail’s target went to C$155 from C$135, while CPKC’s went to C$145 from C$135.
Aritzia Inc.’s (ATZ-T) fiscal 2027 appears to be off to a strong start, said TD Cowen analyst Brian Morrison.
“We forecast Q1/F27 revenue (~$926mm) at the high end of management’s $900mm-$925mm guidance, driven by brand momentum, a resonating Spring/Summer assortment, mobile app accelerating eCommerce growth, and heightened investment in y/y digital marketing. Our checks support our view of strong revenue growth that should drive margin increments toward the high end of its Q1/F27 gross margin guidance (~275bps y/y inclusive of tariff headwinds) and SG&A leverage of ~75bps y/y,” Mr. Morrison said in a note to clients.
“Based upon Aritzia’s F2027 guidance, we imply that mid-point EPS is ~ $4.50-$4.60, relative to current consensus of $4.63. This is based upon revenue of ~$4.5bln/ EBITDA margin of ~19.0%. We believe buyside expectations are geared toward the high-end of management’s guidance that we imply is ~$4.80-$4.85. Aritzia is unlikely to make material revisions to annual guidance after the seasonally weak Q1, but we believe visibility toward the high-end may be required to maintain share price momentum,” he added.
Mr. Morrison maintained a “buy” rating and C$183 price target, and summed up his views optimistically: “From an operating perspective, there is not much not to like about Aritzia, and the market has rewarded the share price appropriately. The brand is resonating, its financial targets appear achievable, there remains runway for growth in the US, e-commerce, and internationally, and its balance sheet is pristine. At the current valuation, we believe Aritzia needs to beat Q1/F27 consensus and have consensus raised to maintain valuation/share price momentum. Heading into the quarter, we believe they are on track to do so.”
Elsewhere, UBS raised its price target as it also looked ahead to Aritzia’s fiscal first quarter. It went to C$204 from C$189, with a “buy” rating reiterated.
RBC Capital Markets analyst Pammi Bir raised his price target on Primaris Real Estate Investment Trust (PMZ-UN-T) to C$23 from C$21 after taking a tour of one of the company’s properties. He continues to rate the REIT “outperform”.
“PMZ hosted a tour of Oshawa Centre (OC), a property acquired in Jan-2025. Overall, we came away with a stronger appreciation of the value creation opportunity from robust CRU [commercial retail unit] leasing velocity, the repositioning of former anchor boxes, and potential monetization of excess land. In short, the property fits squarely within PMZ’s focus on acquiring regionally dominant malls with NOI [net operating income] upside. At a 7.8% implied cap rate, we continue to see attractive growth at a very reasonable price,” the analyst said.
Canaccord Genuity analyst Yuri Lynk raised his price target on Badger Infrastructure Solutions Ltd. (BDGI-T) to C$112 from C$90 after independent channel checks indicated a tightening market for hydrovac services in the U.S.
“We continue to view Badger as one of the most compelling organic growth stories within our coverage universe as hydrovac excavation remains under-penetrated in the U.S., while the trend towards ‘safe digging’ only strengthens. Our refreshed financial model sees 16% EPS growth in 2026, 24% in 2027, and 21% in 2028, all while generating pre-tax ROIC [Return on Invested Capital] north of 20% and self-funding the growth capex required to achieve our estimates. Valuation in the context of this financial profile is undemanding, in our view, and we would be adding to positions at current levels,” he said in a note.
Mr. Lynk is maintaining a “buy” rating.
Canaccord Genuity analyst Aravinda Galappatthige says the recent pullback in shares of Stack Capital Group Inc. (STCK-T) has created an attractive buying opportunity.
“The highly anticipated SpaceX IPO earlier this month raised Stack Capital’s profile in the market, highlighting the effectiveness of its strategy and portfolio management,” the analyst said in a note.
“Recall, Stack’s initial investment in SpaceX was at a $80B valuation. While Stack benefitted from the pre-SpaceX IPO run, we believe the sell-off post-IPO has been overdone, opening up an attractive entry point for STCK, below our projected NAV estimate. We estimate that the current share price sits at a 10.1% discount to our Q3/26 estimated NAV as we factor in ongoing financing processes for key portfolio names such as Fluidstack, Crusoe Energy, and Locus Robotics. We see this as a compelling entry point considering Stack’s solid track record over the past five years. We note that of the 18 investments made since inception, the company has only had to write down two, while a number of them have seen outsized returns (e.g., SpaceX, OpenAI, CoreWeave). Importantly, its investment structure (late-stage preferred shares) has demonstrably limited downside,” Mr. Galappatthige said.
He has a C$30 price target on the stock.