Inside the Market’s roundup of some of today’s key analyst actions
National Bank analyst Adam Shine downgraded Cogeco Communications Inc. (CCA-T) to “sector perform” from “outperform” while cutting his price target to C$70 from C$75 in the wake of fiscal third quarter results this week.
The results showed Canadian operations largely inline with expectations but unexpectedly weak financials in the U.S., where both revenues and EBITDA fell by about 10%.
“Further intensification of U.S. competitive environment has U.S. financials not improving as quickly as CCA expected despite its turnaround efforts,” Mr. Shine noted.
“Estimate reductions amid rising competitive pressures trigger our rating change with patience required to see CCA complete its transformation plan through fiscal 2027 before any catalysts may ensue (spectrum monetization, strategic review),” he said.
Scotiabank analysts led by Kevin Fisk made several price target changes, and a couple of rating changes, on Canadian energy stocks in a preview note for second quarter earnings.
International Petroleum Corp. (IPCO-T) was upgraded to “sector outperform”, with a price target of C$38. The move was linked to its high production growth, “attractive fee cash flow, and ”reasonable" valuation.
IPCO’s production growth over the next 18 months will be driven by the ramp-up of Blackrod, which achieved first oil ahead of schedule in late May 2026, Mr. Fisk noted.
“The company’s free cash flow allows management to pursue organic growth, shareholder returns, and/or opportunistic M&A. Based on our SOA NAV IPCO’s share price is implying about $68 WTI, which suggests a reasonable valuation that has room for appreciation,” he said in a note to clients.
Meanwhile, Meren Energy Inc. (MER-T) was downgraded to “sector perform”, with a price target of C$2.50.
Scotiabank noted Meren’s “production inflection point” is still a few years away.
“MER’s production profile will be relatively stable in 2027 and 2028 with the restart of infill drilling in Nigeria. The next significant inflection point in MER’s production profile will be the start-up of Venus in 2030. TTE, the operator of Venus, has suggested FID [final investment decision] could be announced soon and MER has guided to FID in mid-2026. We believe Venus FID is positive for MER; however, part of Venus’ value is already reflected in the share price and a positive FID announcement should not be a surprise to the market given TTE’s supportive commentary. Overall, management has skillfully positioned MER to benefit from the Venus discovery without being burdened by upfront development capex,” Scotiabank said.
CIBC analyst Luke Bertozzi upgraded Wesdome Gold Mines Ltd. (WDO-T) to “outperformer” from “neutral” following visits to the company’s Kiena and Eagle River projects earlier this month. His price target went up by C$1 to C$32.
“We believe Kiena is reaching a long-awaited operational inflection point, while Eagle River’s weaker Q2 appears to reflect a temporary, sequencing-related blip at an otherwise consistently strong operation,” Mr. Bertozzi said in a note to clients.
“Beyond the near-term operational improvements, the company is working to demonstrate the potential of additional deposits within the Eagle River complex. Importantly, Wesdome continues to generate meaningful free cash flow, supporting shareholder returns while funding ongoing optimization and exploration,” the analyst said.
Desjardins Securities initiated coverage on the Canadian oil and gas sector, expecting continued improvement in their valuations over time.
Analyst Robert Mann said he believes investors need to be selective. He assigned four “buy” ratings and seven “hold” recommendations. Suncor and Cenovus are his top ideas among the Canadian majors, Whitecap within the large-cap exploration and production group, and Tamarack as his preferred small/mid-cap idea.
“Canadian energy is entering a new phase. Improving market access, increasing financial flexibility, disciplined capital allocation, and growing recognition of Canada’s role as a secure and reliable supplier of energy have fundamentally strengthened the sector’s investment proposition. While the valuation gap between Canadian energy producers and their US peers has narrowed meaningfully, we believe the re-rating remains supported by durable fundamentals rather than cyclical conditions,” Mr. Mann said in a note to clients.
“Our constructive view is rooted in the convergence of several supportive trends: world-class resource depth and quality, disciplined corporate behaviour, improving infrastructure availability, and a more supportive investment environment. Provided capital discipline remains broadly intact, we believe Canadian energy producers remain well-positioned to continue re-rating over time,” he said.
Here are his ratings, price targets and summaries of his thoughts for each stock now under coverage:
Cenovus Energy Inc. (CVE-T, “Buy–Average Risk", C$50 target): “We believe the market continues to underappreciate the long-term value-creation potential associated with the MEG acquisition. Improving downstream execution, synergy realization, and a visible pathway toward accelerating shareholder returns support our constructive outlook.”
Suncor Energy Inc. (SU-T, “Buy–Average Risk", C$107 target): “We view Suncor as one of the highest-quality opportunities in the Canadian energy sector, supported by continued operational improvements, visible shareholder returns, and an increasingly compelling path toward additional free cash flow growth. The company remains one of our preferred ways to gain exposure to the oil sands.”
Whitecap Resources Inc. (WCP-T, “Buy–Average Risk", C$22 target): “Whitecap offers a differentiated combination of scale, inventory depth, capital flexibility, and operational execution. Following ongoing industry consolidation, we believe the strategic value and growing scarcity of large-cap non–oil sands investment alternatives are increasingly attractive."
Tamarack Valley Energy Ltd. (TVE-T, “Buy–Above-average Risk", C$16 target): “Tamarack provides compelling exposure to one of the most attractive oil plays in North America through its concentrated Clearwater position and newly established Clearwater pure-play strategy. Continued success with waterflood development, improving capital efficiency, and enhanced financial flexibility support an attractive risk-reward profile.”
Canadian Natural Resources Limited (CNQ-T, “Hold–Average Risk", C$70 target): “We continue to view Canadian Natural Resources as one of the highest-quality operators in North America, supported by unmatched scale, asset diversity, and operational execution. While the company continues to execute at a high level, elevated investor expectations leave less room for positive surprises relative to peers at this time, alongside stronger relative preference for refining exposure in the current environment.”
Imperial Oil Limited (IMO-T, “Hold–Average Risk", C$160 target): “Imperial has distinguished itself through a high-quality asset base, strong capital efficiency, and one of the strongest shareholder return programs in the sector. While we remain constructive on the business, we believe much of this strength is already reflected in investor expectations and the current valuation.”
Tourmaline Oil Corp. (TOU-T, “Hold–Average Risk", C$68 target): “Tourmaline remains Canada’s premier natural gas producer, supported by meaningful scale, inventory depth, and balance sheet strength. While the company remains very well-positioned to benefit from structural demand growth, we believe the timing of a sustained improvement in western Canadian natural gas fundamentals remains a key item of debate among investors.”
Athabasca Oil Corporation (ATH-T, “Hold–Above-average Risk", C$12.50 target): “Athabasca offers meaningful long-term growth potential through its thermal oil sands and Duvernay positions. While we remain constructive on the company’s asset quality, financial flexibility, and strategic positioning, we believe investors are increasingly focused on the next phase of the capital cycle and how management balances production growth, capital deployment, and future shareholder returns. As a result, we see a more balanced risk-reward profile at current levels.”
Headwater Exploration Inc. (HWX-T, “Hold–Above-average Risk", C$14.50 target): “Headwater continues to distinguish itself through operational execution within its Clearwater waterflood development, balance sheet strength, and exploration success. While we remain constructive on the company, we believe its premium valuation appropriately reflects the strength of both the asset base and management’s execution track record.”
Spartan Delta Corp. (SDE-T, “Hold–Above-average Risk", C$13.50 target): “Spartan offers a differentiated opportunity to participate in the emergence of a potentially significant Duvernay growth platform, and a management team with a track record of scaling up and crystallizing value. While we remain constructive on the long-term opportunity, infrastructure spending required to support an accelerated pace of development is likely to constrain near-term free cash flow generation, resulting in a more balanced risk-reward profile at current levels.”
Vermilion Energy Inc. (VET-T, “Hold–Above-average Risk", C$16.00 target): “Vermilion provides differentiated exposure to international natural gas markets and meaningful optionality through its German deep-gas exploration program. While we view the company’s international portfolio and premium gas pricing exposure favourably, we believe investors will require further operational validation from Germany and greater visibility into long-term value creation before assigning a higher valuation.”
National Bank analyst Nathan Po nudged up his price target on Alaris Equity Partners Income Trust (AD-UN-T) by C$2 to C$30 and reiterated an “outperform” rating after hosting Alaris’ president and CEO Steve King and CFO Amanda Frazer for a day of meetings in Toronto with institutional investors.
Mr. Po concluded that Alaris offers a “differentiated class” of mid-market private assets.
“AD gives investors access to profitable, low-leverage, required-services-based businesses in the lower mid-market in the form of its structured equity, truncating the left tail of the return curve while elongating the right. As many partners are seeking partial liquidity or a management buyout while also maintaining ownership continuity, AD’s preferred financing provides real differentiation at the deal table against traditional PE firms,” Mr. Po said in a note to clients.
“We expect up to several partners are nearing a redemption event which will help provide AD incremental capital required to support its deployment pipeline. We are also excited by the continued opportunity over the next 36–48 months for AD to reinforce the success of its common equity strategy through further redemptions, based on typical holding periods," he added.
He concluded, “We rate AD OP as the company provides investors with a vehicle to access a unique asset class with capped downside protection through its preferred equity while retaining upside through common equity monetizations. We expect incoming partner redemptions to act as a significant catalyst for deployment capacity and to reinforce the success of AD’s common equity investments.”
ATB Cormark Capital Markets analyst David McFadgen cut his price target on MDA Space Ltd. (MDA-T) to C$51 from $62 while reiterating a “sector perform” rating. The lower target came as he revised his estimates to factor in the acquisition of Collecte Localisation Satellite and MDA’s concurrent equity issue.
Canaccord Genuity analyst Mark Neville initiated coverage on Elevate Service Group Inc. (SERV-X) with a “buy” rating and a C$3.25 price target.
Elevate is an integrated and multi-trade service platform that consolidates facilities management and commercial services industry in Canada.
Said Mr. Neville, “Since its go-public transaction in November 2025, the company has completed four subsequent acquisitions that have (1) added significant scale to operations, (2) brought a host of blue-chip customers while significantly decreasing its customer concentration, (3) meaningfully advanced its internalization efforts, more than doubling its internal technician count, (4) added new service verticals while increasing regional density in select markets, which offers the potential for cross-selling/service bundling opportunities for clients, and (5) created significant shareholder value, with the share price more than doubling. Operating in a large, growing, and highly fragmented market, we see considerable incremental upside in the shares as the company executes its highly accretive M&A program. Our $3.25 price target is based on 10.5x our 2028E EV/EBITDA.”