Inside the Market’s roundup of some of today’s key analyst actions
Following recent tours of First Majestic Silver Corp.’s (AG-T) Santa Elena and Cerro Los Gatos mines in Mexico and First Mint facility in Nevada, National Bank Financial analyst Alex Terentiew “returned impressed with the quality of the operations, evident substantial exploration and mine life upside, opportunities to marginally increase mining and milling rates, and positive culture evident throughout the operations visited.”
That led him to raise his recommendation for the Vancouver-based company’s shares to “outperform” from “sector perform” after an increase to his estimated value for the mines.
“Both Cerro Los Gatos (CLG) and Santa Elena hold over 100,000 hectares of land, each with numerous targets to test, already defined resources to expand, and ample untested land to explore,” said Mr. Terentiew. “Santa Elena has the clearest path to resource growth, in our view, with CLG in the earlier stages of exploration, although several intercepts at numerous targets highlight the project’s resource growth potential.
“Both Santa Elena and CLG are in the process of incrementally expanding mining and milling rates to take advantage of excess capacity and optimize production in light of the current gold and silver price strength.”
In a client note released before the bell, the analyst said First Majestic is now optimizing mine plans to take advantage of higher metal prices “with both near and long-term trade-offs being evaluated.”
“A topical discussion in the industry today, and on the mine tours we attended, is how mine plans and resource estimates will adjust with the strong rally in precious metal prices,” he noted. “We expect First Majestic, like its peers, will ultimately add some lower-grade tonnes to its mine plans, but will correspondingly increase mine lives and achieve the same, or higher margins in the near to medium term with the rise in metal prices outpacing the negative impact of lower grades.”
With increases to his net asset value assumptions, Mr. Terentiew raised his target for First Majestic shares to $22 from $20. The average target on the Street is $15.26, according to LSEG data.
“Our AgEq production estimates increase over the medium term at slightly higher AISC [all-in sustaining costs] in 2026 & 2027, although our FCF drops on increased capex estimates, primarily reflecting our assumption for another large exploration budget next year,” he explained. “We are upgrading First Majestic to Outperform from Sector Perform given the increase to our estimated value for the company’s mines, which in turn has increased our target price and implied rate of return.”
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In a research report released Monday titled The Goldilocks scenario persists, Stifel analyst Ian Gillies reaffirmed his “constructive” view on Canadian engineering and construction firms, believing “organic growth continues to be well-supported by government spending most OECD regions and AI-related spend.”
However, he did warn “there are more pockets of weakness for private capex compared to last year due to trade tensions.”
“M&A remains a key catalyst, and we expect STN to be the next acquirer,” said Mr. Gillies. Valuations need to be assessed on a case-by-case basis. The risk on nature of the market currently means ATRL/STN/WSP may suffer from relative underperformance, but we still view them as core holdings given the compounding nature. This risk-on trade is already benefiting the smaller cap names, and we expect that to continue into year-end.
“Our best 12-month large cap idea is ATRL and our best small cap idea is BDT. Our two best near-term ideas are STN and BDGI.”
Introducing his forecasts for fiscal 2027, the analyst predicted customers will continue to support above-average organic growth for E&C companies under our coverage.
“Data continues to support elevated and growing public spending on infrastructure that will remain a strong tailwind,” said Mr. Gillies. “Importantly, there continues to be significant increases in private spending with respect to AI infrastructure buildout on data centres, power and utility solutions.. We believe AI and government infrastructure spending will be the key drivers for organic growth for many years. Negatively, the level of uncertainty is higher for private spending outside of AI and AI related themes at this time when compared to last year. On balance, combined private and public spending should continue to grow in the MSD range, thereby helping to propel share prices higher. ...
“In our view, organic growth for these companies will continue to be supported by large sums of government infrastructure funding being released through multi-year funding programs across key OECD geographies. More specifically, many of these government programs are expected to last half a decade or longer (from now). Conversely, there is still uncertainty regarding private capex (excluding AI and AI-related spending), given some weakness in the overall economy on top of trade tensions across the globe. With that said, most Central Banks are expected to continue reducing interest rates, which should make moving forward with projects more palatable given lower borrowing costs. The other key risk for private spending is that the Mag 7 continues to grow as a total proportion of overall S&P 500 capex. This creates concentration risk and means that many companies will need to focus their efforts on key companies and trends, which includes artificial intelligence-linked spending (e.g. power, data centres, et cetera), environmental work, onshoring and infrastructure work.”
With his new projections, the analyst made these target adjustments:
* AtkinsRéalis Group Inc. (ATRL-T, “buy”) to $131 from $110. The average on the Street is $111.92.
Analyst: “A 2027 estimated net cash position of $820-million provides significantly flexibility for M&A; nuclear exposure creates a significant EPS tailwind; 25-27 estimated EPS CAGR [compound annual growth rate] of 22.6 per cent and the valuation is inexpensive in 2027 at 20.4 times P/E.”
* Stantec Inc. (STN-T, “buy”) to $175 from $160. Average: $162.36.
Analyst: “High-quality earnings and top-tier management, while offering a 25E-27E EPS CAGR of 10.6 per cent. Valuation is 23.4 times 2027 P/E, but this should compress as M&A is announced. The two key catalysts are (1) M&A and (2) potential reacceleration of U.S. organic growth.”
* WSP Global Inc. (WSP-T, “buy”) to $350 from $317. Average: $313.07.
Analyst: “Well-defined M&A flywheel, excellent exposure to AI/Gov’t end-markets and best in class operator in our view, while offering a 2025E-2027E EPS CAGR of 13.0 per cent (27E P/E: 22.7 times). M&A likely a key catalyst in 2026E given that Power acquisition is now well in the rearview.”
* Aecon Group Inc. (ARE-T, “hold”) to $24 from $19. Average: $24.36.
Analyst: “Slower organic growth profile than the peer group and margin uncertainty remains. We expect AUI to garner more attention in 2026 given excellent end-market exposure and potential M&A opportunities. We find the stock expensive at 8.2 times 2027E EV/EBITDA.
* Bird Construction Inc. (BDT-T, “buy”) to $41 from $36. Average: $34.31.
Analyst: “2025 has been a transition year, but we expect organic growth to snap back in 2026 (underpinned by backlog). The 2025E-2027E EPS CAGR remains compelling at 26.9 per cent, and we still advocate for a meaningful valuation re-rating to at least the double digits (2027E P/E: 8.8 times).”
* Badger Infrastructure Solutions Ltd. (BDGI-T, “buy”) to $70 from $63. Average: $58.28.
Analyst: “Investor focus is now on a steady cadence of revenue growth and modest margin expansion. Offers a 2025E-2027E EPS CAGR of 19.1 per cent, which we believe is not onerous in the face of a 2027E P/E of 14.4 times. We think optionality exists in the business through (a) potential M&A; and (b) an underutilized manufacturing facility.”
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In response to the “remarkable” run for the share price of Lithium Americas Corp. (LAC-N, LAC-T) of 200 per cent over the past two weeks, Scotia Capital analyst Ben Isaacson thinks it’s time to “take profits” and downgraded his recommendation to “sector underperform” from “sector perform” previously.,
“While it may very well continue, we can no longer support the valuation, even at a Hold,” he said. “Simply put, we failed to appreciate how a heated bull market would interpret Trump’s magic touch, on a thematic commodity starving for attention (think recent CATL noise). Of course, this is despite the magic touch being dilutive to shareholders. Perhaps, investors believe the DOE will back-stop delays/cost overruns (i.e., LAC is now too important to fail). Either way, and to acknowledge our lesson learned, we have raised our PT to $5.00.
“First, our $17k mt LCE NAV10%drops to $2.50/sh, on the revised deal terms with the DOE. Second, and to compromise with the market (i.e., capitulate), we have introduced a 2-times NAV target multiple, largely to reflect fly-up pricing optimism, as a supply deficit will soon return. If/when that occurs, the debate will then transition to lithium price sustainability. This approach is similar to how base/precious metals stocks have been valued, at times. As a revised $5/sh PT reflects a negative 45-per-cent ROR [rate of return], we have downgraded LAC to a Sell. We encourage investors to take profits on a remarkable run, and reload at lower levels.”
Mr. Isaacson’s new US$5 target is up from US$2.75 previously but below the US$5.83 average on the Street.
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Scotia Capital analyst Andrew Weisel and Robert Hope expect North American regulated utility stocks to “continue to struggle in the near term despite strong and improving fundamentals as consistently-rising investor sentiment seems tougher and tougher to fight.”
“We remain extremely bullish on the underlying backdrop, with demand for electricity accelerating, driving ongoing upside to capex outlooks,” they said in a client report. “However, few utilities are converting these opportunities into upside to EPS. In today’s risk-on market environment, we worry that defensive stocks will continue to be left behind without positive estimate revisions.
“We upgrade Entergy Corp. (we see data centre-related upside to EPS), upgrade Duke Energy Corp. and downgrade The Southern Co. (we see comparable growth but are no longer willing to pay up a massive premium for SO’s defensiveness and see potential for more upside to DUK’s EPS on a guidance basis), and we downgrade DTE Energy Corp. to Sector Perform (though the growth outlook is among the best in the industry, we believe that conservatism will limit upside to EPS guidance). Inside the report, we also detail key catalysts for several regulated utilities under our coverage.”
The analysts predict the “macro risk-on” environment will likely continue to leave defensive stocks behind on both sides of the border.
“Stock markets continue to blaze all-time highs, with the S&P 500 having gained 8 per cent during 3Q25 (after gaining more than 10 per cent in 2Q25) and the S&P/TSX gaining 12 per cent, driven by strong corporate earnings, optimism over AI, the impacts of tariffs appearing to be less daunting than initially feared, and a more dovish slant from the Fed, among countless other considerations,” they said. “After outperforming the S&P 500 by 9 per cent in 1Q25, Utilities lagged the benchmark by the same amount over the subsequent six months as investors shifted to risk-on mode following the Liberation Day pullback. We argue that the underperformance would have been even more dramatic were it not for utilities’ exposure to high-profile data center customers, which have been buoying sentiment. Regardless, at this point, it seems as though the appeal of a ‘sleep well at night’ stock is quite limited, and pending a rapid deterioration in the global macroeconomy (which certainly could happen), we don’t see that changing any time soon.”
Mr. Hope made these target adjustments to Canadian companies in his coverage universe:
- AltaGas Ltd. (ALA-T, “sector outperform”) to $48 from $46. The average is $44.
- Atco Ltd. (ACO.X-T, “sector perform”) to $55 from $54. Average: $56.14.
- Emera Inc. (EMA-T, “sector outperform”) to $72 from $70. Average: $66.71.
- Fortis Inc. (FTS-T, “sector perform”) to $73 from $70. Average: $71.15.
“EMA-CA has outperformed this year and seen its valuation expand,” he said. “Our target valuation is based on 2027, which is a low growth year for the company given the age of its rates at Tampa Electric. We assume 2028 will see another sizable step up in growth (similar to 2025) and given this we increase our EMA-CA target by 0.5 times and our FTS-CA target by 1.0 times. This increases our target price $2 to $72. With FTS-CA growth outlook becoming more clear in the U.S. we increase our target P/E multiple by 1 times, which increases our target price $3 to $73. Our ALA-CA target price moves up to $48 from $46 to reflect an increase in gas distribution utility valuation multiple to 19.5 times P/E from 18.5 times. This reflects continued data center growth in the region as well as a more constructive outlook for gas in the region. There could be further upside to our target price if the company is able to secure attractive midstream opportunities.”
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While acknowledging we are "still in early innings," National Bank Financial analyst Zachary Evershed thinks “nation-building initiatives are a major potential growth vector for natural resource and infrastructure exposed names,” like Dexterra Group Inc. (DXT-T) for which he sees “substantial opportunity” for its workforce accommodations business.
Last week, he hosted the management team from the Mississauga-based company, including CEO Mark Becker, for institutional investor meetings with discussions focused on new organic growth opportunities brought on by the recent acquisitions of Right Choice Camps & Catering and a 40-per-cent stake in Ohio-based Pleasant Valley Corp. as well as “potential infrastructure and natural resource tailwinds for the remote business in the context of Nation Building.”
“In DXT’s case, projects such as Ksi Lisims LNG, Prince Rupert Gas Transmission, Northern Gateway 2.0, and mining projects yield the potential to create demand for thousands of beds, to the benefit of all workforce accommodations providers, but especially DXT’s Asset-Based Services segment: the acquisition of Right Choice has expanded DXT’s capacity while maintaining its spec/quality advantage vs. competitors,” said Mr. Evershed. “Per our channel checks, executive-style accommodations have become the standard across most sectors, and these beds are typically the first to be contracted. This (and DXT’s ability to rationally relocate assets) is evidenced by its differentiated 90-per-cent-plus utilization rates.
“DXT’s Support Services segment stands to benefit as well, with nation building driving upside to remote hospitality, which currently makes up 45 per cent of consolidated revenues, and defense spending likely providing a tailwind to Dexterra’s exposure to facilities management on military bases and remote government installations.”
After introducing his fiscal 2027 forecast for the company, which fall in line with the long-term growth and margin targets previously set by management, Mr. Evershed raised his Street--high target for its shares to $15 from $14, keeping an “outperform” rating. The average is $12.48.
“With elevated, resilient FCF supported by a variety of tailwinds, DXT remains our top pick for 2025, and as our forecasts do not yet include any contribution from nation building projects, we see significant upside potential to our estimates in outer years,” he added.
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Desjardins Securities analyst Kyle Stanley is beginning to see the benefits of improving investor sentiment toward the industrial real estate sector, which he thinks “reflects both (1) a realization of still healthy fundamentals despite macro noise, and (2) investor rotation out of REIT subsectors that have outperformed.”
“As investors look for opportunities in the REIT space, seniors’ housing remains quite attractive; however, with retail sector valuations looking more fair in general, the near-term outlook for Canadian multifamily remaining cloudy and the shift in sentiment towards office appearing fully priced in, we believe the best destination for new capital is the industrial space today,” he said in a research report.
“While not without risk and uncertainty given ongoing global trade disputes, our work herein supports a positive demand dynamic supported by market fundamentals bottoming out and an improved new supply outlook (vs recent past), which should translate to the second-strongest earnings growth opportunity by asset class (up 8 per cent, behind seniors’ housing) for 2026. From a growth-adjusted value perspective (PEG), the industrial subsector screens best within our coverage universe, with NXR and GRT leading the way.”
Year-to-date, Mr. Stanley said the four industrial REITs in his coverage universe have “been quite successful on the leasing front, delivered healthy average SP NOI [same-property net operating income] growth and are well positioned for FFOPU [funds from operations per unit] growth in the year ahead.”
Given “improving sentiment and more confidence” in his outlook, he increased his targets for all four equities. They are:
* Dream Industrial REIT (DIR.UN-T, “buy”) to $14.50 from $14. The average is $13.78.
Analyst: “DIR has delivered solid results year-to-date, with the outlook for 2H25 stacking up well as the flurry of leasing completed in 1H becomes income-producing and the gap between committed and in-place occupancy (190 basis points at 2Q25) closes. We have made modest adjustments to our capitalized interest assumptions reflecting anticipated development deliveries, which translated into a 2-per-cent reduction in our 2026 and 2027 FFOPU outlook—we now expect FFOPU of $1.11 in 2026 and $1.16 in 2027. For 3Q25, we are expecting FFOPU of $0.26 vs the Street average at $0.27. Notwithstanding the modest estimate revision, we see DIR generating healthy 6-per-cent FFOPU growth in 2026 while offering investors an attractive entry point with its units trading at 11.2 times 2026 FFO, a 19-per-cent NAV discount and a 6.4-per-cent implied cap rate, as it has modestly underperformed the peers year-to-date (12-per-cent total return vs the industrial peers at 17 per cent)."
* Granite REIT (GRT.UN-T, “buy”) to $89 from $87. Average: $86.78.
Analyst: “Improving demand for large-bay space in 1H25 drove substantial leasing activity across GRT’s midwestern geographies, after 18–24 months of elevated competition and challenging leasing conditions. An expectation for in-place occupancy to improve 100 basis points from 2Q levels (to 96.5–97.0 per cent), in addition to a further 300,000–350,000 square feet of leases being negotiated in August, allowed for a modest increase in guidance with 2Q results. Leasing commentary from U.S. peers in the period since reporting has maintained a positive tone, which supports our view of a solid finish to 2025 (9-per-cent year-over-year FFOPU growth assumed) and a similarly healthy 8-per-cent FFOPU growth rate in 2026. Our $1.47 FFOPU estimate for 3Q25 is in line with the consensus mean. Notwithstanding a robust 17-per-cent year-to-date total return, we believe GRT’s relative valuation remains attractive."
* Nexus Industrial REIT (NXR.UN-T, “buy”) to $9 from $8.75. Average: $8.31.
Analyst: “We believe NXR screens as one of the most attractive small-cap names within our coverage universe, as it has navigated the trade headwinds efficiently year-to-date, quickly replacing the few vacancies within the portfolio with quality tenants at healthy rental rates. Moreover, with $70-million of development deliveries scheduled for 2H, the earnings power quickly improves into 2026 — our forecast calls for FFOPU growth of 9 per cent, which combined with a discounted valuation (9.8 times 2026E FFO, a 22-per-cent NAV discount and a 6.8-per-cent implied cap rate) translates to the most attractive PEG amongst the industrial peers at 1.2 times."
* PRO REIT (PRV.UN-T, “hold”) to $6.25 from $6. Average: $6.25.
Analyst: “PRV has now completed its transition to pure-play industrial REIT after it recently closed the disposition of a 12-asset, non-core retail portfolio for $51.3-million, (8-per-cent cap rate), taking its pro forma NOI contribution from industrial assets to 90 per cent. Moreover, we have been encouraged by PRV’s progress on the capital recycling front year-to-date, in addition to its ability to deliver healthy 6.6-per-cent SP NOI growth. However, as previously highlighted, a vacancy in Québec is likely to weigh on occupancy and organic growth in 3Q. We are calling for FFOPU of $0.12 in 3Q25, just below the consensus mean of $0.13.”
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Stifel analyst Ralph Profiti thinks the asset base for IsoEnergy Ltd. (ISO-T) “offers investors a rare blend of near-term U.S. production and high-grade Canadian exploration upside.”
He resumed coverage of the Toronto-based company with a “buy” recommendation.
“In the U.S., the fully permitted Tony M. Mine postions the company to capitalize on increasing energy security and on-shoring policy momentum,” said Mr. Profit. “With low capex and near-term production potential we view Tony M as a uniquely attractive - and underappreciated for its reduced permitting and execution risk in a structurally under-supplied domestic U.S. uranium market.
“In Canada, IsoEnergy’s flagship Hurricane deposit ranks among the highest-grade undeveloped uranium assets globally. Strategically located in the Athabasca basin, Hurricane sits adjacent to heavyweight neighbours, and with growing relevance in the next wave of Athabasca uranium development, we see opportunity for a re-rate driven by regional consolidation pressure. IsoEnergy’s disciplined yet aggressive approach to exploration adds further upside opportunity, positioning the company well to unlock blue-sky value creation through the drill bit.”
The analyst set a target of $22 per share. The current average is $21.60.
“Additionally, the company maintains projects in Virginia (USA), Quebec (Canada) and Queensland (Australia) – jurisdictions with uranium mining currently under moratoriums – which serve as strategic call options should regulatory conditions evolve favourably,” he noted.
In the same client note, he also gave Corpus Christi, Tex.-based Uranium Energy Corp. (UEC-A) a “buy” rating and US$10.50 target, which sits under the US$15.16 average.
“Uranium Energy Corp. (UEC) is rapidly growing its production calibre in the United States, offering near-term production growth from the development of several U.S. in-situ assets while providing exploration upside opportunities from its assets in the world-renowned Athabasca Basin,” said Mr. Profiti. “Management has a track record of execution and through a series of opportunistic M&A transactions has increased scale and near-term production optionality over the past five years, supporting the asset portfolio with accretive transactions, which supports our belief that UEC will be able to deliver the next phase of growth, as the company transitions to junior producer status. With a business model focused on maintaining 100-per-cent unhedged exposure to uranium prices, UEC has peer-leading trading liquidity and a significant U.S. investor following”
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Desjardins Securities analyst Benoit Poirier lowered his third-quarter forecasts for both Canadian National Railway Co. (CNR-T) and Canadian Pacific Kansas City Ltd. (CP-T) based on “tariff-related mix pressure,” however he expects both to maintain their full-year guidance, pointing to recent conference commentary.
“Our 2025 EPS growth forecasts are now slightly below the guidance ranges (despite the easy 4Q ILWU strike comp), as we prefer to stay conservative given a delayed Canadian harvest, ongoing mix headwinds and a potential peak-season drop in container volumes due to inventory pre-stocking,“ he said. ”Despite a soft trucking market, we continue to favour TFII over the rails for its consolidation upside, greater U.S. exposure, unique self-help levers, stronger FCF yield and insulation from transcon merger risk.”
In a client note released Monday, Mr. Poirier said both CN and CP recorded quarterly volume results that fell in line with his expectations, however he warned volume mix will likely be an obstacle to operating ratio improvements.
“CN achieved RTM [revenue ton mile] growth of 0.5 per cent year-over-year in 3Q, relatively in line with our 0.2-per-cent estimate,” he said. “CP delivered RTM growth of 4.9 per cent year-over-year in 3Q, also in line with our 5.0-per-cent estimate. It appears that the CP network has recovered from the KCS computer systems upgrade/cutover issues, with dwell metrics sequentially improving through the last month of the quarter.
“Volume mix was a headwind for both rails in the quarter as carloads in the key higher-margin segments of forest products and metals were negatively impacted by U.S. tariffs and a weak North American housing market. Consequently, yield is unlikely to be a tailwind this quarter (we forecast up 0.2 per cent year-over-year for CN and down 2.5 per cent year-over-year for CP) due to mix factors, a slight drag from fuel and the removal of the Canadian carbon tax. Moreover, CP’s 3Q numbers will be negatively impacted by a 30-car crude oil unit train derailment that occurred in Wisconsin (no injuries). Taking all of this into consideration, we have tempered down our OR expectations for both rails and now forecast a 62.7-per-cent OR for CN (from 61.4 per cent) and 60.6 per cent for CP (from 59.8 per cent).”
Keeping his “buy” recommendations for both companies, he cut his CN target to $151 from $155 and CP to $120 from $123. The averages on the Street are $156.40 and $121.78, respectively.
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In other analyst actions:
* CIBC’s Krista Friesen raised her Aecon Group Ltd. (ARE-T) target to $29 from $24 with an “outperformer” rating. The average on the Street is $24.36.
“We had the pleasure of hosting ARE for marketing this past week. With us from the company were Jerome Julier, EVP & Chief Financial Officer, and Adam Borgatti, SVP Corporate Development and Investor Relations. While there are some near-term unknowns (legacy project completion timeline, weakness in certain Western Civil projects), the company also spoke to a number of medium- to long-term strategies and opportunities to improve margin predictability and drive growth for the company. We are increasing our price target ... as we increase our multiple to better reflect the growth opportunities within the company’s Nuclear and Utilities business,” said Ms. Friesen.
* Barclays’ Theresa Chen moved her Enbridge Inc. (ENB-T) target to $68, exceeding the US$67.43 average, from $65 with an “equal-weight” rating.
“As is typical, we expect 3Q to reflect the lowest earnings across quarters due to normal seasonality impacting ENB’s diversified footprint. Looking ahead, we continue to think Gas Transmission will serve as the primary engine of earnings growth from here,” she said.
* Previewing the Oct. 29 release of its third-quarter results, TD Cowen’s Brian Morrison hiked his Gildan Activewear Inc. (GIL-N, GIL-T) target to US$73 from US$67 with a “buy” rating, seeing potential catalysts “cement [it as a] top pick.” The average is US$70.88.
“Prior to the proposed acquisition of Hanesbrands, we were positive on Gildan due to its leadership cost structure and heightened capacity positioning it to gain share in expanded verticals. We believe together with HBI we should see an acceleration of its EPS growth profile/historically strong FCF with revenue, and more importantly tangible cost synergies, the hallmark of Gildan’s success,” said Mr. Morrison.
“The combination of the North American activewear leader in the Printwear channel with the Retail innerwear leader appears a powerful combination to drive attractive EPS growth/strong FCF. Gildan’s track record of cost leadership heighten our confidence in its cost synergy/EPS growth targets that if achieved illustrate a compelling valuation.”
* Jefferies’ Randal Konik cut his Lululemon Athletica Inc. (LULU-Q) target to US$120 from US$150 with an “underperform” rating. The average is US$208.66.