Inside the Market’s roundup of some of today’s key analyst actions
While acknowledging the market “continues to highlight the elevated stock valuations in the Canadian Midstream sector,” RBC Dominion Securities Inc. Maurice Choy thinks TC Energy Corp.’s (TRP-T) “solid financial performances (including in Q2/26) and continued delivery of growth projects with attractive risk-adjusted returns reinforce its stock investment thesis, and with that, its valuation.”
“Macro forces may impact Energy GICS stocks (including TC Energy); however, we sense that long term investors share our penchant for many of the secular growth drivers that underpin TC Energy’s growth outlook, from natural gas pipelines to nuclear energy via its 48-per-cent stake in Bruce Power,” he added in a client report released before the bell titled Turning pipe dreams into reality.
Shares of the Calgary-based company closed up 0.74 per cent on Thursday after it reported second-quarter normalized earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.948-billion, exceeding both Mr. Choy’s $2.805-billion estimate and the consensus projection of $2.844-billion. Normalized earnings per share of 94 cents also topped expectations (85 cents and 84 cents, respectively).
“Natural gas demand backdrop has improved ... Following a refreshed focus on Bruce Power, TC Energy now sees an improved North American natural gas growth outlook, with demand in 2035 reaching 181 Bcf/d [billion cubic feet per day], up 51 Bcf/d from 2025, and up 11 Bcf/d from its original estimate for the year,” said Mr. Choy. “Notably, it expects 70 per cent of the demand increase over the next decade to come from the U.S. Heartland, Alberta, and Mexico - areas where TC Energy has significant existing infrastructure and a strong incumbent position.
“... which improves TC Energy’s gas pipeline opportunity set. As TC Energy’s secured growth program grows to $22 billion (up from $21 billion at the end of 2025), the company has: (1) $7 billion of projects pending approval (up $1 billion from the prior quarter), with the increase mainly representing the potential Crossroads project that may be sanctioned in Q4/26; and (2) over $20 billion of additional projects in advanced stages of origination (up from around $15 billion previously) that align with its targeted 5-7-times EBITDA build multiple range.”
Also noting TC Energy is “continually bringing new initiatives across the line,” Mr. Choy made “modest” revisions to 2026 and 2027 EBITDA forecasts “to mainly reflect the Q2/26 takeaways, and modest FX rate assumption changes.”
That led him to increase his target for the company’s shares to $106 from $104, keeping an “outperform” rating. The average target on the Street is $100.
“We have also introduced our 2028 estimates of $12.800 billion for EBITDA and $4.25 for EPS, with the year-over-year growth being supported by financial improvements across most major assets, including the commissioning of new assets (notably in the U.S.). With this new base year and slight moderation of our valuation multiples, our price target has increased,” he added.
Elsewhere, other analysts making target revisions include:
* TD Cowen’s Aaron MacNeil to $102 from $100 with a “hold” rating.
“Conference call commentary reinforced our constructive fundamental growth outlook for TC, with incremental detail around Crossroads, the more than $20-billion origination backlog and strengthening Alberta demand signals suggesting the opportunity set continues to expand. We see a revised NGTL framework and larger project announcements as key near-term catalysts,” said Mr. MacNeil.
* National Bank’s Patrick Kenny to $103 from $102 with an “outperform” rating.
“Of note, the company has revised its 10-year North American natural gas demand growth outlook by 30 per cent to 51 billion cubic feet per day by 2035 (was 40 bcf/d), with accelerating power demand accounting for more than half of the increased forecast,” said Mr. Kenny.
* ATB Cormark’s Nate Heywood to $100 from $98 with a “sector perform” rating.
“With this update, we have revised our estimates to capture the Q2/26 print and increased longer-term estimates on newly sanctioned growth,” he said.
* Barclays’ Theresa Chen to $102 with $100 with an “overweight” rating.
“TRP delivered strong 2Q results and provided visibility toward an FID of Crossroads later this year against an increasingly robust backdrop for gas infrastructure demand,” said Ms. Chen.
* BMO’s Ben Pham to $99 from $94 with an “outperform” rating.
“Q2/26 results reinforced our view that TRP’s N.A. natural gas incumbency has created a sustained flywheel of high growth projects, where FIDs each quarter have now become the norm. This flywheel appears to be spinning faster with $20-billion-plus projects in origination ($15-billion-plus last quarter) and annual net capex potentially to $8-billion by 2029 vs. $6-billion current. This suggests that its 5-7-per-cent growth rate could accelerate by end of decade just as Bruce’s MCR programs begin to materially increase cash flow,” said Mr. Pham.
Stifel analyst Martin Landry says he’s a buyer of Gildan Activewear Inc. (GIL-N, GIL-T) after a second-quarter earnings beat and a 10-per-cent raise to its full-year guidance, calling it his “best idea” and reiterating its spot on the firm’s “Select” list due to “strong earnings growth prospects, improving balance sheet and depressed valuation.”
“Gidan’s shares were down midday ... Some confusion may have occurred on the sustainability of the $220 million tariff tailwind,” he said in a client report. “Roughly half is recurring and explains most of the guidance increase. The company has completed the transfer of Hanes’ production, which should resolve Gildan’s capacity issues. Hence, with capacity better able to support sales growth, we expect revenues to return to a growth mode on a pro forma basis. Free cash flow guidance for 2026 has been increased to $1-billion, which represents an appealing FCF yield of 11 per cent.
“With the expected sale of the Australian business, debt repayment should accelerate and financial leverage could decrease to approximately 2 times by year-end, absent buybacks.”
TSX-listed shares of the Montreal-based clothing manufacturer closed 2.1 per cent higher after it reported earnings per share of US$1.28, a gain of 33 per cent year-over-year and higher than both Mr. Landry’s expectation of US$1.11 and consensus estimate of US$1.12.
“The beat vs our expectations comes from lower SG&A as Gildan is realizing cost saving synergies from the Hanes acquisition faster than we had expected,” he said. “Additionally, the company has included a tariff refund of $25 million in adjusted EPS, which accounts for roughly $0.11 per share. Revenues decreased 8 per cent year-over-year on a pro forma basis and came-in slightly lower than our expectations and management’s guidance. Gildan mentioned market softness towards the end of the quarter with lower seasonal inventory build at certain large retail customers.
“2026 guidance increased. Management has increased its 2026 EPS guidance by 10 per cent, which now stands at $4.65-4.75, higher than our previous estimates of $4.25 and consensus of $4.29. The increase in the company’s guidance comes mostly from the removal of tariffs on goods produced under the CAFTA-DR free trade agreement. These tariffs were removed at the end of February. Management sees the new guidance as a sustainable base on which to build. Q3/26 guidance calls for sales of $1.65 billion, up 2.5 per cent year-over-year pro forma, slightly lower than previous consensus of $1.7 billion. This implies a strong Q4/26, where sales are expected to increase by 10 per cent year-over-year pro forma, due to a shift in fleece production.”
Seeing an “appealing” valuation, Mr. Landry increased his target for Gildan shares to US$83 from US$80, maintaining a “buy” rating. The average target is US$78.45.
“Gildan currently trades at 10-times forward earnings, three turns lower than its 10-year average,” he said. “Gildan’s valuation is lower than its historical levels despite earnings growth accelerating to exceed a CAGR [compound annual growth rate] of 20 per cent for the coming three years 2026-2028. This represents a PEG ratio of 0.5, an appealing valuation level, which does not fully reflect the company’s potential growth prospects, in our view. We expect the company to generate healthy cash flow levels of $6.70/share in 2027, representing a free cash flow yield of 13 per cent.”
Elsewhere, others making revisions include:
* National Bank’s Vishal Shreedhar to $107 (Canadian) from $105 with an “outperform” rating.
“We consider the Q2/26 release to be positive owing to stronger 2026 margin expectations, partially offset by growth concerns which were not fully addressed. We maintain a favourable view on Gildan owing to attractive valuation and anticipated earnings growth, in part supported by synergies. We acknowledge investor uncertainty will persist until GIL delivers consistent growth,” said Mr. Shreedhar.
* RBC’s Ryland Conrad to $82 from $78 with an “outperform” rating.
“Despite the modest revenue shortfall, we believe Gildan’s Q2/26 results and revised 2026 guidance checked most of the boxes with structural upside to profitability and a clearer path to resuming share buybacks by year-end with the announced sale of HanesBrands Australia. Following estimate revisions to incorporate 2026 guidance revisions, our price target increase,” said Mr. Conrad.
* Scotia’s John Zamparo to US$67 from US$65 with a “sector outperform” rating.
“Clearly more focus has been placed on the primary negative component of GIL’s Q2, lower sales growth, compared to more numerous positive items. The company did reduce sales guidance and noted a softer start to July. On the other hand, we’re more focused on a structurally higher margin business ($100-million-plus in recurring EBIT) with material synergies still to come, and an early conclusion to the de-leveraging target. Net, we acknowledge the negative attributes but still consider the stock very undervalued,” said Mr. Zamparo.
RBC Dominion Securities analyst James McGarragle came away from Bombardier Inc.’s (BBD.B-T) quarterly release and conference call emphasizing “demand remains exceptional.”
“We believe this is going to drive higher levels of FCF in 2026 (vs. prior expectations) and see current demand levels as sustainable therefore supporting increased production rates post 2027,” he said. “Key is that we do not believe higher levels of production, which we are calling for in 2028, are fully reflected in out-year estimates; and we are flagging this as a significant re-rating catalyst.”
In a client note, he added: “The demand environment remains a key standout with book-to-bill coming in at 1.5 times and the backlog up 25 per cent year-to-date. Management noted demand is robust early in Q3, and we continue to see the long-term outlook as compelling. We point to pre-owned inventory for Global models at 4.5 per cent of active fleet as a strong indicator of future demand, in addition to significant Defense opportunities. Highlighting higher rates of production that we are calling for in 2028 as a meaningful re-rating catalyst and driver of FCF growth longer-term.”
Shares of the Montreal-based company closed down 7.9 per cent on Thursday despite reporting adjusted EBITDA of $325-million for the quarter, topping both Mr. McGarragle’s estimate of $321-million and the consensus of $313-million. Revenue of $2.15-billion was also fell in line with expectations ($2.2-billion and $2.13-billion, respectively).
“Management maintained 2026 FCF guidance at more than $1-billiob despite Q2 coming in well ahead,” the analyst said. “We note the guide assumes a book-to-bill of 1 times for the last three quarters of the year, and with Q2 coming in at 1.5 times and Q3 off to a strong start we see this assumption as conservative. We therefore took higher our 2026 FCF estimate to $1.37-billion (from $1.29-billion), which represents a FCF yield of 5.3 per cent. While 2026 FCF is benefitting from customer deposits, which could weigh on 2027 FCF growth if book-to-bill normalizes, we view the growth outlook as compelling on the back of increased production rates and robust services growth.
“Improved leverage profile increasing capital allocation optionality. Net leverage declined to 1.6 times (from 1.8 times last quarter) on the back of EBITDA growth and robust FCF generation. We believe this balance sheet strength provides meaningful optionality for further de-leveraging, growth investment, and shareholder returns — with management explicitly flagging inorganic opportunities in aftermarket services."
After raising his 2026 earnings forecast, Mr. McGarragle hiked his target for Bombardier shares to $406 from $383, keeping an “outperform” rating, to reflect “strong demand that [he believes’ supports increased production rates longer-term.” The average target on the Street is $345.75.
Elsewhere, other changes include:
* BMO’s Fadi Chamoun to $375 from $350 with an “outperform” rating.
“We continue to like the name as demand fundamentals remain strong (not yet reflected in the company’s backlog), compounded by an improving margin/FCF conversion profile, we see a clear runway for continued outperformance,” said Mr. Chamoun.
* Desjardins Securities’ Benoit Poirier to $368 from $364 with a “buy” rating.
“Demand remains robust, while supply chain challenges appear manageable, supporting a positive 2H outlook. Management reiterated guidance and highlighted strong demand entering 3Q and an active 4Q, suggesting upside to its FCF outlook. We raised our 2026 FCF estimate to US$1.4-billion and our target to $368. Despite the shares’ 41-per-cent year-to-date gain (vs 12 per cent for the S&P/TSX Composite), we see further upside from strong FCF generation and optionality from leverage now nearing management’s target,” said Mr. Poirier.
* TD Cowen’s Tim James to $320 from $306 with a “hold” rating.
“Q2 was strong on many fronts and supports our view of the solid fundamentals. Given recent valuation multiple expansion to unprecedented levels, we would not be surprised to see profit taking and moderation in the multiple despite good results. Core margin expansion appears to be facing headwinds, though we have no reason to believe these won’t subside going forward and provide multi-year upside,” said Mr. James.
* National Bank’s Cameron Doerksen to $379 from $349 with a “sector perform” rating.
“We continue to be bullish on growth for Bombardier supported by strong biz jet market fundamentals (book-to-bill of 1. times in Q2) and growing momentum in Defense, but valuation remains relatively expensive, already reflecting high growth expectations, in our view,” said Mr. Doerksen. “On our updated 2027 estimates, Bombardier shares are trading at 15.4 times EV/EBITDA versus the direct aircraft OEM peer group at 11.6 times.
“We previously valued the stock by applying a 14.0 times EV/EBITDA multiple to our 2027 forecast, but in light of the still strong fundamentals, particularly the exceptionally strong new jet order activity and backlog growth that further solidifies the outlook over a multi-year period, we are increasing our valuation multiple to 15.0 times (near the high end of our comfort level for valuation). After our estimate changes, our new target is therefore C$379.00, up from C$349.00 previously. With limited upside to our new target, we would look for a better entry point to be buyers.”
While he saw the second-quarter results from Loblaw Companies Ltd. (L-T) as “neutral” relative to his expectations, National Bank Financial analyst Vishal Shreedhar applauded the “solid and consistent performance” from the country’s largest grocer and continues to believe it will deliver “consistent growth” across his forecast horizon.
"We maintain a favourable view on L reflecting: (i) Benefits from improvement initiatives; (ii) Ongoing stable EPS growth; and (iii) Favourable medium-term trends in discount and drug store (where L over-indexes),“ he said. ”Given an uncertain macro backdrop, we favour proven staples such as L to add resiliency to portfolios."
Loblaw shares closed down 0.5 per cent on Thursday after it reported revenue of $15.27-billion for the quarter, up from $14.672-billion in the same period in fiscal 2025 and above the expectations of both Mr. Shreedhar and the Street ($15.133-billion and $15.069-billion, respectively). Earnings per share grew 11.9 per cent year-over-year to 66 cents (from 59 cents) and also topped projections (65 cents each).
“We view L to be a beneficiary of continued consumer focus on value (heightened promotions, trade-down, etc.) given a growing discount store base,” said Mr. Shreedhar, touting the presence of “several medium-term gross margin drivers,”
“L gained market share in discount and conventional, which is positive amid increasing competition (accelerating industry sq. ft. growth). GLP-1 genericization is expected to be accretive to 2027 sales and margins (volumes to outpace price reduction to drive double-digit sales growth, with a higher gross margin rate). In addition, L expects continued improvement in SDM shrink (currently at pre-COVID levels).
The analyst raised his full-year 2026 and 2027 earnings per share projections to $2.58 from $2.55 and $2.84 from $2.80, respectively.
That led him to increase his target for Loblaw shares to $70, matching the average on the Street, from $67, keeping an “outperform” rating.
“We value Loblaw using a sum-of-the-parts methodology, reflecting 11.5 times our 2027/28E Retail EBITDA and the stake in EQB. The higher PT reflects slightly higher estimates, a higher stake in EQB and a roll forward of our valuation period,” he explained.
Elsewhere, other changes include:
* Scotia’s John Zamparo to $67 from $64 with a “sector perform” rating.
“Loblaw delivered the consistency investors seek from the name, with an in-line Q2 led by Rx sales and solid GM% expansion, underscoring the consistency of the business model. Incremental to this quarter were (a) what we consider to be a continuation of lower food sales growth owing to an increasingly competitive market; and (b) a more positive expected outcome from generic GLP-1s next year: management believes it can attain double-digit sales growth despite price compression from genericization. We consider valuation to adequately reflect L’s predictable growth story,” said Mr. Zamparo.
* BMO’s Tamy Chen to $73 from $70 with an “outperform” rating.
“Loblaw’s stock opened down 2 per cent but ended the day down 0.5 per cent. The Food SSS miss likely weighed on the stock, but we found the company’s outlook for generic GLP-1s to be incrementally positive. We believe Loblaw’s overall growth algorithm and key drivers remain intact,” she said.
* Desjardins Securities’ Chris Li to $72 from $70 with a “buy” rating.
“Another quarter of consistent execution supports L’s premium valuation, in our view (approximately 24 times forward P/E vs MRU at 17 times and EMP at 14 times). Tailwinds from trade-down trends, GLP-1 drugs, new stores and alternative businesses, along with easing cost pressure in 2H as the DC ramps, reinforce confidence in L’s growth framework. We expect September’s investor day to further highlight L’s ability to deliver consistent 8–10-per-cent EPS growth across market conditions through multiple growth drivers,” said Mr. Li.
In other analyst actions:
* “Taking a breath after robust 2026 year-to-date total return performance,” Raymond James’ Brad Sturges downgraded Primaris REIT (PMZ.UN-T) to “outperform” from “strong buy” with a $25.50 target (unchanged). Analysts making target changes include: TD’s Sam Damiani to $25 from $24 with a “buy” rating, Scotia’s Mario Saric to $24 from $22 with a “sector perform” rating and Desjardins Securities’ Lorne Kalmar to $26 from $23.50 with a “buy” rating. The average is $18.38.
“Primaris has been one of the top performing Canadian REITs in 2026 YTD (return: near 50 per cent). While we expect Primaris’ price appreciation to take a bit of a breather after very strong outperformance in 2026 year-to-date, we expect Primaris to operationally generate accelerating, above-average NOI growth year-over-year as new anchor and CRU leasing takes effect over the next several quarters,” said Mr. Sturges.
* ATB Cormark’s Kyle McPhee raised his rating for CareRX Corp. (CRRX-T) to “outperform” from “speculative buy” with a $6.25 target (unchanged). The average is $5.14.
“CRRX reported in-line Q2/26 results alongside material de-risking news (contract secured for 3,000 new beds). The news kick-starts the de-risking process for our forecast that suggests the stock is heavily undervalued and this should become increasingly obvious to the equity market throughout the coming quarters (benefit of the recent bed wins). We are upgrading our rating,” he said.
* ATB Cormark’s Richard Gray upgraded Kinross Gold Corp. (K-T) to “outperform” from “sector perform” and raised his target to $45 from $41, while National Bank’s Shane Nagle reduced his target to $47.50 from $50 with an “outperform” rating. The average is $54.22.
“Kinross delivered another solid quarter, demonstrating its ability to deliver strong FCF even as higher oil prices continue to put pressure on costs. The company aggressively returned capital to shareholders, allocating just under 40 per cent ($275-million) of its FCF generated during the quarter. The updated economics from Lobo-Marte provide longer term visibility into Kinross’ growth strategy and allow the market to attribute proper value to the longer-dated development project,” said Mr. Gray.
* Expecting “muted” near-term earnings growth, ATB Cormark’s Gavin Fairweather downgraded Real Matters Inc. (REAL-T) to “sector perform” from “outperform” with a $6 target, down from $8. Analysts making target changes include: TD Cowen’s John Shao to $7 from $9 with a “buy” rating and Raymond James’ Steven Li to $7.50 from $8.25 with an “outperform” rating. The average is $7.67.
“Q3/F26 missed our estimates on net revenue margins, partly due to rising mortgage rates shifting mix to HELOC from higher margin rate refinance orders. The bright spot was 10 new logos, a new high watermark over the past few years. However, the MBA is now forecasting a flat mortgage market in C27. While we continue to expect share gains as newer vintage clients ramp and more are added to the platform, the pace of net revenue gains and associated operating leverage are more muted relative to our prior expectations. While we do not see much downside in the shares, with no visible medium-term catalyst we are downgrading REAL to Sector Perform from Outperform previously,” said Mr. Shao.
* Seeing it “still addressing macro/ balance sheet issues,” National Bank’s Maxim Sytchev lowered his target for Ag Growth International Inc. (AFN-T) shares to $19 from $20 with a “sector perform” rating. Other changes include: ATB Cormark’s Tim Monachello to $18 from $25 with a “sector perform” rating, RBC’s Andrew Wong to $20 from $30 with an “outperform” rating and Desjardins Securities’ Gary Ho to $20 from $25 with a “buy” rating. The average is $27.78.
“The back half of the year is likely to be under more pressure as we are still cycling through tough comps amid the Commercial business model reset, commodity volatility, and Farm still being in the early stages of recovery,” said Mr. Sytchev. “Overall, this was a tough and noisy quarter, with investors hoping that a value surfacing opportunity takes place sooner than later; from a buyer’s perspective, one, however, needs to consider what is the underlying run rate of the Commercial business, how to deal with leverage, and a lack of FCF and whether the current input pricing is a short-term issue or not. Given the many moving parts, we are staying on the sidelines for the time being.”
* RBC’s James McGarragle lowered his Algoma Steel Group Inc. (ASTL-T) by $1 to $6 with a “sector perform” rating, while BMO’s Katja Jancic also lowered her target to $6 from $7 with a “market perform” rating. The average is $8.17.
“Q2 results aligned with the pre-release, and Q3 guidance points to a 10-20 per cent quarter-over-quarter decrease in shipments due to planned downtime. Key in our view is that management expects underlying EBITDA to continue improving sequentially as legacy fixed costs, which are on track to be eliminated by Q4, are shed alongside the Unit 2 ramp. That said, we continue to see risk associated with the current tariff backdrop and the impact on Algoma’s FCF outlook,” said Mr. McGarragle.
* RBC’s Maurice Choy bumped his AltaGas Ltd. (ALA-T) target to $59, matching the average on the Street, from $55 with an “outperform” rating. Other changes include: BMO’s Ben Pham to $59 from $54 with an “outperform” rating, TD Cowen’s John Mould to $60 from $55 with a “buy” rating and ATB Cormark’s Nate Heywood to $63 from $60 with an “outperform” rating.
“Alongside a classic beat and raise as part of its Q2/26 results release, we anticipate investors welcomed AltaGas’ broader discussion on its long-term opportunities at REEF, not just in propane/butane, but also in ethane. Favourably, underpinning these opportunities is the continued robustness of demand from Asian customers, with commercial terms and spreads being supportive of a measured pace of growth by AltaGas beyond 2030. Together with solid growth in other midstream assets (backed by a brighter WCSB outlook) and in utilities (8-per-cent rate base growth through 2030), these themes will durably keep investors engaged in the stock,” said Mr. Choy.
* National Bank’s Patrick Kenny hiked his Atco Ltd. (ACO.X-T) target to $79 from $69, remaining above the $53 average, with a “sector perform” rating.
“ATCO reported Q2/26 adj. EPS of $1.01 versus our estimate of $0.99 (Street: $0.98), reflecting increased S&L contributions from the Stibnite Gold project, spaced rentals activity and impact of inflation indexing from ATCO Gas Australia coupled with steady growth in rate base at ATCO Energy Systems,” he said.
* Raymond James’ Frederic Bastien increased his Badger Infrastructure Solutions Ltd. (BDGI-T) target to $105 from $98 with an “outperform” rating. The average is $100.39.
“We reiterate our Outperform rating on Badger Infrastructure following another solid quarter that reinforces our positive long-term outlook. For the second consecutive quarter, BDGI delivered materially stronger-than-expected revenue growth, thanks to broad-based strength across power, manufacturing, LNG, airports, and municipal infrastructure. With demand proving more durable and diversified than we expected, and the firm’s enhanced scale driving meaningful operating leverage, we are comfortable raising our target price,” said Mr. Bastien.
* Raymond James’ Luke Davis increased his Baytex Energy Corp. (BTE-T) to $8.50 from $8 with a “strong buy” rating. The average is $7.30.
“Baytex posted a solid second quarter, coming in ahead on volumes and cash flow, while bumping guidance given a stronger than expected run rate. While we remain bullish around Baytex’s heavy oil portfolio and SAGD optionality, the quarter was punctuated by outperformance across core Duvernay acreage, where well results have consistently come in ahead of internal expectations. In our view, the streamlined and refocused business should drive accelerated returns while the net cash balance sheet funds a growth-oriented capital program and aggressive share buyback that saw 3 per cent of shares cancelled during the quarter. With a growth plan targeting 6-8-per-cent top line production growth and 15-per-cent total shareholder returns, we believe the stock will gain traction as the new team builds credibility; reiterate Outperform, target to $8.50/share,” said Mr. Davis.
* In response to “solid” second-quarter results, National Bank’s Patrick Kenny bumped his Brookfield Infrastructure Partners L.P. (BIP.UN-T, BIP-N) target to US$44 from US$43 with an “outperform” rating, while BMO’s Devin Dodge increased his target to US$47 from US$44 with an “outperform” rating. The average is US$44.50.
“Overall, with the company continuing to execute on its US$3.0-billion capital recycling program and progressing towards simplifying the BIP/BIPC structure into a single corporate entity, enhancing liquidity and broadening index inclusion, our target taps up US$1 to US$44, matching our SOTP valuation, and we reiterate our OP rating ahead of further potential growth on the Alberta data centre front as well its Investor Day update on Sept. 29th,” said Mr. Kenny.
* TD Cowen’s Sean Steuart increased his target for Canfor Corp. (CFP-T) to $20 from $18, exceeding the $16.60 average, with a “buy” rating.
“We expected that CFP results would be a Q2 outlier, but the rate of earnings improvement was still ahead of expectations. Gains were led by strong North American lumber prices (mix benefit) and resurgent European margins. Portfolio optimization initiatives (closures of Northwood pulp and sawmills in Sweden/Alberta plus a small EWP acquisition) are expected to yield mid-term margin gains,” said Mr. Steuart.
* Scotia’s Orest Wowkodaw trimmed his Champion Iron Ltd. (CIA-T) target to $5 from $5.50 with a “sector outperform” rating. The average is $5.74.
" CIA reported weaker-than-anticipated Q1/F27 results driven by a material inventory build associated with the ramp-up of the new DRPF plant and scheduled port/rail maintenance. The results also reflect the first combined quarter with Rana Gruber. Given the significant miss relative to expectations, we view the update as negative for the shares. While clearly disappointing ... we believe that quarterly EBITDA and FCF have likely now troughed, with improving results ahead. While we remain cautious on the outlook for Fe prices, we rate CIA shares SO based on valuation and a near-term anticipated FCF inflection point," said Mr. Wowkodaw.
* National Bank’s Maxim Sytchev bumped his Colliers International Group Inc. (CIGI-Q, CIGI-T) target to US$110 from US$109, keeping an “outperform” rating, while Scotia’s Himanshu Gupta dropped his target to US$145 from US$150 with a “sector outperform” rating. The average is US$148.
“The IM margin recovery being pushed to the right is not helping the earnings revision dynamic (as Engineering and strong transactional parts of the business are being offset as we speak). Rate volatility is hard to forecast as a lot of this dynamic is predicated on geopolitics (and politics, it seems); management, of course, does not have the luxury of waiting and therefore rightfully focuses on execution. Incremental capital deployment is privileged towards M&A, a message we believe the market is not entirely convinced of (vs. NCIB… yes, we realize leverage needs to come down); that being said, management has a long track record of accretively allocating capital, and we believe most are ready to stay patient (as are we)," said Mr. Sytchev.
* TD Cowen’s David Kwan bumped his Coveo Solutions Inc. (CVO-T) target to $7 from $6.50 with a “buy” rating. The average is $6.25.
“We think winning its first $10-million ARR customer (we believe SAP) should help bolster sentiment and the stock. When you add in another $1-million-plus ARR win, the reiterated F27 guidance may prove conservative, setting up possible upward revisions. At just 1.1 times EV/Rev (calendar 2027 estimates), an IT Services-type multiple, with several key catalysts ahead, we think the risk/reward is compelling,” said Mr. Kwan.
* TD Cowen’s Mario Mendonca increased his Definity Financial Corp. (DFY-T) target to $93 from $89 with a “buy” rating, while Raymond James’ Stephen Boland moved his target to $85 from $80 with a “market perform” rating.. The average is $83.
“Op. EPS $0.97, up 16 per cent year-over-year, reflecting 38-per-cent earned premium growth, much stronger underwriting income, and 29-per-cent growth in investment income,” said Mr. Mendonca. “EPS was higher than our estimate $0.94 and cons. $0.93, reflecting better underlying claims results. Excluding PYD & CAT, the underlying claims ratio was ~30bps better than our forecast & only slightly higher than last year (surprising given TRV’s higher loss ratio),” said Mr. Mendonca.
* RBC’s Bart Dziarski increased his IGM Financial Inc. (IGM-T) to $89 from $80, keeping a “sector perform” rating. The average is $84.
“Q2/26 results were strong with adjusted EPS above our estimates and consensus driven by IG WM and ChinaAMC FV gains. Increasing our price target to $89 (was $80) driven primarily by rolling forward our valuation, increasing our AM target multiple from 9 times to 10 times, and net positive adjustments to our NAV-based valuation framework (ie. WS write-up, Northleaf write-up, ChinaAMC write-up). Maintaining Sector Perform rating given limited upside potential. IGM’s internal intrinsic value of $94 also suggests limited upside from current levels (8 per cent or 11 per cent including dividend),” said Mr. Dziarski.
* TD Cowen’s Jonathan Kelcher increased his Morguard REIT (MRT-UN-T) target to $6.50 from $6, which is the average, with a “hold” rating.
“Q2 results were ahead of our estimates/consensus, driven by a healthy 7.5-per-cent SPNOI [same-property net operating income] print, supported by steady Retail performance and a rebound in Office. Leasing momentum is holding steady across the portfolio, and with limited near-term renewal risk, we reiterate our expectation for an earnings recovery in 2027. We view the current valuation as fair,” said Mr. Kelcher.
* Raymond James’ Daniel Magder initiated coverage of Vancouver’s Panoro Minerals Ltd. (PML-X) with an “outperform” rating and $4.25 target.
“Panoro’s flagship Cotabambas Copper-Gold Project in southern Peru hosts a mineral resource exceeding 1.0 billion tonnes, containing 6.7 billions pounds of copper and ~5.9 mln ounces of gold, including a higher-grade component of 220 Mt grading 1.20% CuEq. Supported by a fully funded 45,000 m drill program, a strengthened balance sheet, an experienced management team and board of directors, and one of Peru’s largest undeveloped copper-gold assets, we believe Panoro offers an attractive combination of development optionality, exploration upside, and leverage to strengthening long-term copper market fundamentals,” said Mr. Magder.
* BMO’s Ben Pham raised his Pembina Pipeline Corp. (PPL-T) to $72 from $68 with a “market perform” rating. The average is $70.56.
“PPL’s Q2/26 earnings came with limited drama (slight EBITDA miss/2026 guide unchanged), but significant momentum has been built since its April 7 business update with two new growth projects sanctioned (the most notable being Greenlight/Alberta DC), updated Dow agreement, and gaining a call option on a large-scale, nationbuilding 1M bbl/d West Coast Cdn. oil pipeline. We remain comfortable holding the shares for yield and remain confident of 5-7-per-cent fee-based EBITDA/sh guidance,” said Mr. Pham.
* Raymond James’ Stephen Boland reduced his TMX Group Ltd. (X-T) target to $64.50 from $65.25 with a “strong buy” rating. The average is $64.86.
“Overall, this was another strong quarter for TMX. Market activity remains favourable, while the Global Insights business continues to deliver impressive results. Looking ahead, the company’s expanding pipeline of pending strategic acquisitions provides additional avenues for growth and further supports its long-term strategic positioning,” said Mr. Boland.
* TD Cowen’s Menno Hulshof moved his Vermilion Energy Inc. (VET-T) target to $19 from $18 with a “buy” rating, while BMO’s Jeremy McCrea bumped his target to $17 from $15 with a “market perform” rating.. The average target is $22.
“The most important message from the [post-earnings] conference call was the notion of significant de-risking,” said Mr. Hulshof. “Accelerated net debt reduction, a much cleaner 2027 ops outlook and strong execution against its 5-year plan all support higher shareholder returns. Germany is increasingly shifting from exploration to development, with a clear path to expanded infra, higher rates, and a growing long-term inventory runway.”
* RBC’s Matthew McKellar cut his West Fraser Timber Co. Ltd. (WFG-N, WFG-T) target to US$83 from US$85 with an “outperform” rating, while TD’s Sean Steuart cut his target to US$88 from US$90 with a “buy” rating. The average is US$87.50.
“While West Fraser’s Q2 results were slightly below our expectations, each of its core segments printing positive EBITDA was somewhat encouraging, and the North American EWP business in particular seems to be somewhat better positioned than we had previously assumed despite continued input cost pressure. We continue to like West Fraser’s discipline in capital allocation, and note that the stock continues to trade at a discount to its historical average on our estimate of Trend EBITDA,” said Mr. McKellar.