Inside the Market’s roundup of some of today’s key analyst actions
A strategic “pivot” boosts the investment case for Canadian National Railway Co. (CNI-N, CNR-T), according to Citi analyst Ariel Rosa.
On Friday, TSX-listed shares of CN rose 3 per cent after it reported third-quarter adjusted earnings per share of $1.83, a gain of 6 per cent year-over-year and 2 cents above Mr. Rosa’s projection and 5 cents more than the consensus expectation. It also reaffirmed its full-year 2025 adjusted EPS outlook of a gain of mid- to high-single digits year-over-year (versus the estimates of the analyst and the Street of 6.4 per cent and 5.2 per cent) on low-single digits volume growth.
Mr. Rosa said a more significant development was the signaling for a shift in strategy with chief executive officer Tracy Robinson “acknowledging that volume growth has not materialized as expected given various macro headwinds.” That led CN to reveal a plan to cut its 2026 capex forecast by nearly $600-million from $3.35-billion this year, “which should support higher free cash flow in the years ahead”.
“CN said it plans to step up on productivity initiatives, flexing down variable costs given it sees delayed projects on a softer economy,” he added. “It noted elevated uncertainty weighing on industrial production. Its outlook for ’26 reflects expectations for roughly similar conditions from ’25, as it holds excess capacity, noting its locomotive availability is at all-time high. Management noted pricing headwinds, as its price gain for regulated grain ’25-’26 is up 1.7 per cent, down from up 6 per cent last season. It announced a $75-million. targeted labor cost-out plan (approximately 90 per cent impacting opex). As part of its capital reduction plan, management. noted that it has expended high levels of capex over the last few years, bringing its fleet from the oldest in the industry to now middle-of-the-pack. It has also invested in capacity such as double-track in parts of its network and is looking to capitalize on high incremental margins, as its reduced capex as a percent of rev. to the mid-teens would imply being in line with Class 1 peers. CEO Robinson further noted she views a sub-60 target as the ‘right operating ratio’ for CN. She also voiced opposition to the UP-NS proposal advocating for the lower-risk approach of increased partnerships to drive volume growth.”
Seeing the strategic shift and the potential for higher free cash flow making CN “attractive” for investors, Mr. Rosa raised his target for its U.S.-listed shares by US$1 to US$120, reiterating a “buy” recommendation after increasing his fiscal 2027 earnings expectation. The average target on the Street is US$114.21, according to LSEG data.
“We continue to view CNI as undervalued and we believe this bolsters the investment case, albeit against slower top-line growth,” he said.
“We rate CNI Buy. Muted investor expectations have created a favorable backdrop for CNI to outperform. CNI benefits from structural network advantages (long-haul lengths and tri-coastal access) which should enable higher incremental margins as the volume environment improves.”
Elsewhere, others making target changes include:
* RBC’s Walter Spracklin to $158 (Canadian) from $148 with an “outperform” rating.
“CN’s Q3 results had a lot to like: 1) EPS was a beat; 2) guidance was maintained (vs. risk that it would be cut); 3) capex was materially reduced, driving FCF higher; and 4) management is directing the capex savings into the share buyback (which was materially higher this quarter). Moreover, much of what we saw [Friday] is, in our view, a sustainable positive for the shares longer term. Even despite the share price move [Friday], the stock still screens cheap and we reiterate our OP rating,” said Mr. Spracklin.
* Scotia’s Konark Gupta to $160 from $150 with a “sector outperform” rating.
“Following recent executive appointments, particularly in operations and marketing, the company is accelerating growth and margin strategy by further optimizing the cost structure, rebalancing capital investments, and focusing on service-driven market share gains. These initiatives should enable CNR to enhance FCF power, return more capital to shareholders, and create dry powder in order to take advantage of any opportunities from potential U.S. rail consolidation. Despite its intention to reduce capex, management sounded confident in network fluidity and available capacity following years of investments. Valuation remains quite attractive,” said Mr. Gupta.
* ATB Capital Markets’ Chris Murray to $151 from $150 with a “sector perform” rating.
“CN delivered a solid quarter amid difficult market conditions and maintained full-year guidance, implying expectations for volume growth in Q4/25. While management acknowledged that the demand environment remains challenging heading into 2026 and is unlikely to improve over the near-term, it believes CN-specific initiatives, healthy pricing conditions and productivity gains remain supportive of its growth outlook. The CapEx plan for 2026 was lowered with $600-million in savings expected to support increased share repurchases, which looks prudent given valuations and CN’s discount to peers. While we are constructive on the rightsizing efforts, buyback plans, and better execution in 2025, a challenging macro and lack of near-term catalysts keep us neutral on CN,” said Mr. Murray.
* CIBC’s Kevin Chiang raised his target to $146 from $140 with a “neutral” rating.
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National Bank Financial analyst Maxim Sytchev thinks Toromont Industries Ltd.’s (TIH-T) third-quarter results displayed “operational execution married with thematic tailwinds.”
“There is always a voice telling one to ‘take profits’ etc. amid rising valuation; while the call is sometimes easier to make for a very stable business oscillating around a mean, for a compounder with a thematic overlay it usually means leaving a lot of capital on the table,” he said in a client note. “We were very encouraged by AVL’s accelerating growth (and very strong margins), stabilizing pricing backdrop in the core business, and resumption of good year-over-year advances in Product Support and strong performance at CIMCO. Hence, we are staying long as the name remains one of the few concentrated betas to play the Canadian infra theme while benefitting from the U.S. data centre buildout via AVL.”
Shares of the Toronto-based industrial company soared 7 per cent on Friday after it reported quarterly revenue of $1.315-billion, down 2 per cent year-over-year and below both Mr. Sytchev’s $1.385-billion estimate and the Street’s $1.384-billion forecast. However, adjusted earnings before interest, taxes, depreciation and amortization of $256-million came in higher than anticipated ($235-million and $245-million, respectively). Adjusted earnings per share of $1.80 was also well above projections ($1.61 and $1.58).
Seeing equipment margins “stabilizing” and product support “poised for an inflection,” Mr. Sytchev called the backlog visibility and margin profile stemming from its acquisition earlier this year of a 60-per-cent stake in AVL Manufacturing Inc., which focuses on power generation and storage enclosures, “highly attractive.”
“AVL delivered strong sequential revenue growth in Q3/25, with the Hamilton facility now operating near full capacity and the Charlotte facility beginning limited production on one of three lines,” he explained. “Management expects Charlotte to ramp through 2026, with hiring and staffing tracking to plan. AVL now contributes $278-million to the Equipment Group backlog (about 30 per cent), with the backlog expected to flow over the next 18 - 24 months. Management confirmed AVL’s margins are ‘quite healthy’ even after adjusting for amortization, and the business is accretive to both margin and EPS for TIH (so at least higher than 20-per-cent EBITDA margins). This reinforces AVL’s role as another structural growth driver for TIH (expected to contribute low-single-digit growth for the combined business) with attractive economics and low execution risk (it was also indicated that AVL’s dividend to minority shareholders will be determined after full-year results in 2026 – which will slightly raise costs), particularly as demand for data centre infrastructure accelerates in the U.S.”
After accounting for improving margins from its Equipment Group segment and “fine-tuning” the impact from AVL, Mr. Sytchev raised his target for Toromont shares to $176 from $164, reiterating an “outperform” rating. The average target is $168.67.
“The quarter saw TIH deliver a big beat on margin, and we expect some of the recent expansion to persist through 2026 and 2027 on inflecting pricing (higher gross margins and solid PS growth) and positive operating leverage on tight cost control,” he said. “We increased near-term CapEx to account for the Charlotte ramp-up, nudged up SG&A intensity given upcoming dividend payments for AVL minority shareholders and moderated NCIB expenditures. We also nudged down the cost of debt and yields on cash to reflect the lower rate environment. Lastly, given the accelerated non-cash expenditures related to AVL, we increased D&A intensity (more so in the next few quarters), which is why our EPS forecasts remained fairly flat.”
Elsewhere, other analysts making target adjustments include:
* Scotia Capital analyst Jonathan Goldman to $175 from $171 with a “sector perform” rating.
“We increased our target price by 2 per cent solely on the back of higher EPS estimates in 2026 as we model a quicker ramp and contribution from the AVL Charlotte facility,” said Mr. Goldman. “We see limited room for multiple expansion with numerous tailwinds priced-in. For context, TIH is trading at 24.5 times P/E on our 2026 estimates vs. WSP at 24.6 times. The E&Cs have better growth prospects, in our view, both organic and strategic, and higher exposure to secular trends, namely AI power demand. We estimate AVL will account for more than 15 per cent of EBITDA in 2026. The E&Cs should also be sooner beneficiaries of nation-building work, but we understand investors wanting to get onside everything CAD infra-related ahead of the November 4 budget announcement. We updated our SOTP analysis, which produces a target price of $175/share, equivalent to 26 times P/E and 14.3 times EV/EBITDA on our 2026 estimates. We remain on the sidelines due to narrow return to target.”
* RBC’s Sabahat Khan to $180 from $151 with an “outperform” rating.
“Toromont reported Q3 EBIT in line with consensus when excluding a one- time property disposition gain. Looking ahead, we believe the operating backdrop remains supportive (backlog remains healthy, Product Support revenue +3.7% YoY in the Equipment Group), and we expect growing contribution from the acquired AVL business over the coming quarters,” said Mr. Khan.
* TD Cowen’s Cherilyn Radbourne to $180 from $179 with a “buy” rating.
“We assume some short-term retracement of Friday’s 7-per-cent share-price gain, which likely involved some short covering. We believe Toromont is executing well amid a fluid macro, particularly given the earnings drag due to intangible amortization, which should not recur in 2026. Our medium-to-long term outlook is increasingly positive, given the multi-year opportunities in infrastructure/mining/power systems,” she said.
* Canaccord Genuity’s Yuri Lynk to $172 from $160 with a “buy” rating.
“We continue to view Toromont as one of the best compounders within the industrials space. However, with its valuation pushing elevated levels, we believe the stock may have run ahead of fundamentals. While our work points to impressive margin potential at AVL (driving upward EPS revisions), it appears this is increasingly reflected in Toromont’s valuation with its stock 45 per cent higher year-to-date. Meanwhile, construction starts in Quebec and Ontario are expected to remain below 2023 levels for the foreseeable future, while EG backlog declined 20 per cent year-over-year in Q3/2025 (ex. AVL) as market conditions remain uncertain and customer purchasing decisions and activity are somewhat mixed. Risk/reward looks balanced here, in our view,” said Mr. Lynk.
* Raymond James’ Steve Hansen to $150 from $125 with a “market perform” rating.
“We are increasing our target price on Toromont Industries ... to reflect better-than-expected 3Q25 results underpinned by another robust AVL performance. Despite this momentum, we reiterate our cautious view based upon sustained concerns over: 1) further declines in the firm’s core equipment business; 2) the durability of AVL margins as industry capacity surges; and 3) an accompanying trading multiple approaching record territory. Against this backdrop, we are comfortable sticking to the sidelines until greater clarity emerges,” said Mr. Hansen.
* CIBC’s Krista Friesen to $172 from $168 with a “neutral” rating.
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In a research report titled Sunny side up for 2026, RBC Dominion Securities analyst Walter Sparklin says shares of TFI International Inc. (TFII-N, TFII-T) continued to be trading at a “significantly unjustified” low valuation levels, seeing the Montreal-based transportation and logistics provider “setting itself up well for an eventual recovery.”
“With management issuing a Q4 guide that came in well below expectations, the shares were primed for a fairly negative reaction [Friday] (opening down 4 per cent),” he added. “However, a number of factors that were brought up on the call (including the CEO pointing to the ‘sun coming up’ in 2026), reversed the negative sentiment and the shares up a healthy 2 per cent on the day.”
Before the bell on Friday, TFI reported adjusted earnings per share for the quarter of $1.20, matching the Street’s expectation while falling just a penny below Mr. Spracklin’s forecast. He emphasized “strong” free cash flow of $199-million, blow past the consensus projection of $164-million, which “allowed for approximately $100-million of cash to shareholders in dividends/share repurchases in Q3, and supported management’s decision to increase the dividend by 4 per cent
“Q4 guide well below consensus expectations. Management guided to Q4 EPS of $0.80-$0.90, which was well below consensus of $1.19. The softer outlook was driven by a meaningful decline in truck manufacturer deliveries within the Logistics segment and ongoing weak freight demand.
“That said, management is showing success in controlling the controllables. Despite the weak freight demand, management has orchestrated a very nice turnaround in service metrics that have resulted in lower customer churn. LTL [less-than truckload] margins also came in better in Q3, and mgmt pointed to further (and meaningful) expected margin improvement in 2026. Management also re-calibrated lower its 2025 capex guidance to $150-$175-million (from $200-million), supported by surplus equipment from Daseke, which allowed TFI to cut capex without affecting operations.”
Mr. Spracklin now sees the outlook for 2026 “turning up” with president and chief executive Alain Bédard indicating pricing is “starting to firm as a result of lower truck supply and fewer licensed drivers – and that 2026 that might see the ‘sun come up’ compared to a dismal 2025.”
“With the company controlling the controllable per above, we see TFII as setting up for solid upside operating leverage should conditions turn favourable in 2026,” said Mr. Spracklin, despite dropping his full-year EPS projection to $4.16 from $4.66.
Accordingly, he cut his target for TFI shares to US$102 from US$106, reiterating an “outperform” rating. The average is US$109.39.
“Notable is this $4.16 compares to prior peak earnings of $8.02, which begs the question on what the appropriate normalized earnings run- rate is on which to value the stock. With peers trading at 25-times multiple on 2026, the market appears to be appropriately looking past 2026 as the earnings base; however with TFII trading at 15 times (or 40-per-cent discount to peers), there appears to be a significant disconnect,” he said. “Accordingly, we see the TFII upside as significant should we see a macro inflection.”
Elsewhere, other changes include:
* National Bank’s Cameron Doerksen to $145 (Canadian) from $140 with an “outperform” rating.
“Trucking end markets remain challenging, but we think the stock could still see upside over the coming year supported by: (1) the prospects for trucking conditions to improve in 2026 as there is some evidence that industry trucking capacity could exit the market in both the U.S. and Canada due to regulatory enforcement; (2) TFII is making progress on internal margin improvement in its under-performing U.S. LTL segment,” he said.
* Desjardins’ Benoit Poirier to $157 (Canadian) from $161 with a “buy” rating.
“TFII remains our top transportation pick. With the Canadian rails likely in a prolonged strategic limbo as US transcontinental mergers play out, capital will seek new opportunities, and the large-cap Canadian transportation space offers few alternatives. TFII stands out with consolidation potential (which contrasts with CN/CP), greater exposure to the U.S. (70 per cent of revenue), less cross-border/tariff exposure, a superior 2026 FCF yield (11 per cent vs 3–5 per cent for the rails) and unique non-market-reliant self-help catalysts,” said Mr. Poirier.
* Citi’s Ariel Rosa to US$106 from US$110 with a “buy” rating.
“TFII has an exceptional track record of acquiring businesses and improving operations to drive value for shareholders. The company’s management has honed a repeatable playbook that it consistently applies to both large acquisitions and small tuck-ins across various trucking businesses. The current M&A environment has also been favorable for TFII to conduct accretive M&A. We view CEO Alain Bedard and his management team as among the best capital allocators in the industry. Margin improvement opportunities exist at TFII’s U.S. LTL segment (legacy UPS Freight) and the acquired Daseke truckload business. The impending spin/sale of TFII’s Truckload segment could also enable the remaining LTL business to see its multiple re-rate,” said Mr. Rosa.
* CIBC’s Kevin Chiang to US$112 from US$109 with an “outperformer” rating.
* JP Morgan’s Brian Ossenbeck to US$106 from US$104 with an “outperform” rating.
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Following Magna International Inc.’s (MGA-N, MG-T) release of better-than-anticipated third-quarter results and a modest increase to its 2025 guidance on Friday, Scotia Capital analyst Jonathan Goldman emphasized “if we have learned anything in the past year, it’s that we shouldn’t discount the company’s ability to meet/beat expectations by controlling costs and capital.”
TSX-listed shares of the Aurora, Ont.-based auto parts manufacturer jump 6.1 per cent after it reported quarterly sales projection of US$10.3-billion. Adjusted earnings before interest and taxes (EBIT) of US$613-million and adjusted earnings per share of US$1.33 also topped expectations (US$522.1-billion and US$1.25, respectively), driven by strength in its Power and Vision and Seating segments.
Magna is now expecting full-year 2025 sales of US$41.1-$42.1-billion, rising from US$40-$42-billion with North American light vehicle production up to 15 million from 14.7 million.
“The company is on track to achieve another 35-40 basis points of operational excellence this year (almost 200 basis points in aggregate since 2023) and it reduced annual capex guidance by $300 million year-to-date (down 17 per cent) and increased FCF guidance by $200 million (up 22 per cent),” said Mr. Goldman.
“Management talked about 5.5 per cent plus another 35-40 basis points operational excellence being a good foundation for 2026 margins. Add on launch programs with new economics, and margins could conceivably exceed consensus estimates of 5.8 per cent next year (but fall below initial 2026 guidance of 6.5 per cent to 7.2 per cent released back in February). Leverage is expected back within the target range less than 1.7 times by year-end, sooner than expected (previously a 2026 event). The renewal of the NCIB (previously on pause) is another positive sign that company has levers to surface value. MGA shares are trading at 5.2 times EV/EBITDA on our 2026. Even after the move last Friday, shares have lagged peers by a wide margin year-to-date (up 13 per cent vs. LNR [Linamar Corp.] up 34 per cent).”
Mr. Goldman continues to warn of the risk of potential price increases from automakers, calling it “a headwind to demand.”
“There is further risk wholesale underships retail as OEMs manage inventories,” he added. “Inventory was still at a healthy level in October at 51 days’ supply (vs. 63 in January) and includes a significant portion of MY25 vehicles that have not had prices changed. USMCA is also on the table. Tariffs and near-term supply chain issues – Novelis, Nexperia, JLR – seem to be manageable.
Following modest increases of approximately 1 per cent to his forecast for Magna, Mr. Goldman raised his target for Magna shares to US$52 from US$47, keeping a “sector perform” rating. The average target on the Street is US$49.33.
Elsewhere, others making target revisions include:
* RBC’s Tom Narayan to US$48 from US$47 with a “sector perform” rating.
“Magna outperformed in Q3/25 due to operational excellence initiatives. ’25 guidance implies a large upswing in Q4/25 margins, driven by commercial and tariff recoveries. While future growth looks promising with Chinese OEM wins at CV and operational efficiencies, potential Q4/25 risks remain due to production disruptions from supply chain issues. We note that mgmt remains committed to their business segments, and no longer view an asset monetization of CV or Seating as likely,” said Mr. Narayan.
* TD Cowen’s Brian Morrison to US$58 from US$57 with a “buy” rating.
“While industry/macro uncertainties persist, we believe visibility to 2026 margin expansion in a flat production environment is improving, due to operating efficiencies/improved contract economics. We believe this should lead to upward consensus revisions/modest multiple expansion,” said Mr. Morrison.
* CIBC’s Ty Collin to US$50 from US$47 with a “neutral” rating.
* JP Morgan’s Ryan Brinkman to US$57 from US$53 with an “overweight” rating.
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National Bank Financial analyst Alex Terentiew reinforced his bullish outlook for gold prices in the months ahead, pointing to a “macroeconomic backdrop remains supportive of precious metal prices with ongoing political uncertainty, declining real rates, persistent inflation and central banks remaining net purchasers.”
“After a record run in metal prices over the last two years, producers that were once significantly levered and facing significant capex outflows to build new projects are now reaping the rewards of bringing these projects online at all-time high prices,” he said. “A majority of our coverage is now generating significant FCF, at relatively low leverage levels. Despite the record cash balances and FCF, production growth across the industry is projected to remain modest (less than 15 per cent) over the next three years, making M&A a growing priority for a number of the producers, in our view, most notably single-asset producers or mid-tiers looking to scale up and build a more robust and diversified portfolio.”
Given that backdrop, he initiated coverage of four companies in a research report released Monday titled Golden Opportunity: Canada’s Next Chapter of Gold Mines, seeing their projects as “unique” and “well positioned in today’s exceptionally strong precious metals market to make significant progress, either through exploration, engineering and/or permitting, and increase shareholder value over the coming months and years.”
He thinks Canada remains a “favourable” mining jurisdiction, pointing to its “political stability, long and well-established mining history and culture, exploration incentives, and transparent regulatory framework, which is often not shared by many mining jurisdictions globally.”
They are:
* NexGold Mining Corp. (NEXG-X) with an “outperform” rating and $4.25 target. The average is $3.
Analyst: “We view NexGold Mining Corp. as the next fully permitted mine in Canada through its Goldboro project in Nova Scotia. The company is now on the cusp of receiving its final major federal permit after receiving the Industrial Approval (IA) from the government of Nova Scotia in August, the final major provincial permit. We expect that once final permits are received, the company will promptly advance to a construction decision for the project along with corresponding financing in mid-2026.
* First Mining Gold Corp. (FF-T) with an “outperform” rating and 70-cent target. Average: 74 cents.
Analyst: “We view First Mining Gold Corp. as next in line as it advances through final permitting of its flagship Springpole project, located in Northwestern Ontario. The company is awaiting its final EA/EIS approval for the project, and although a portion of the planned open pit is located under a lake, we expect the company will not face additional permitting challenges given the permitting success of similar producing Canadian projects. We expect the company will receive its final major permits in mid-2026, with the company moving to a construction-ready position by late 2027/early 2028.”
* Probe Gold Inc. (PRB-T) with a “tender” rating and $3.65 target. Average: $4.69.
Analyst: “Probe Gold Inc. announced on October 31 that it has entered into an agreement with Fresnillo plc to be acquired in an all-cash offer. With unanimous Board support and 12 per cent of shareholders entered into voting support agreements, we recommend shareholders tender their shares to the offer. Fresnillo’s offer implies a 0.56 times P/NAV valuation, and we believe it is in line with valuations implied by other M&A transaction in the industry over the past few years.”
* Thesis Gold Inc. (TAU-X) with an “outperform” rating and $3 target. Average: $3.35.
Analyst: “Thesis Gold Inc. is focused on advancing its flagship LawyersRanch project in Northern British Columbia, which, in our view, is also relatively early days, with a PEA completed in 2024 and a PFS expected before the end of this year. The project is located in direct proximity to other regional players and existing infrastructure, making it a leading candidate regional consolidation.”
Mr. Terentiew called all four companies are “well-positioned” to be takeout candidates.
“In our view, given the significant cash accumulation of producers globally and the current appetite for smaller scale M&A, we believe gold developers of the size discussed in this report may be targets for established producers looking to grow production over the medium term, in a top mining jurisdiction,” he said. We see First Mining and NexGold as the most likely takeout candidates given their relatively advanced permitting timelines, which significantly de-risk their respective projects and increase their attractiveness to prospective buyers."
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In other analyst actions:
* RBC’s Sabahat Khan raised his Aecon Group Inc. (ARE-T) target to $30 from $26 with a “sector perform” rating. The average is $33.45.
“Aecon reported Q3 Adjusted EBITDA that was above RBC/consensus forecasts despite $20.9-million of losses from the legacy fixed price projects. Nuclear was a notable standout this quarter, and looking ahead, the record $10.8-billion backlog (with additional awards subsequent to quarter-end) provides a strong outlook for the company’s top line growth in 2026,” said Mr. Khan.
* CIBC’s Tal Woolley reduced his Allied Properties REIT (AP.UN-T) target to $15.50 from $17 with a “neutral” rating, while RBC’s Pammi Bir cut his target to $16 from $18 with a “sector perform” rating. The average target is $16.92.
“Post a weak Q3, our confidence in the outlook for AP remains shaky at best. While broader office fundamentals are improving, we expect AP’s portfolio to lag the recovery,” said Mr. Bir. “Our earnings estimates took another step back, although admittedly, there are multiple moving parts. After several years of defending the distribution, a cut is finally under consideration, and rightfully so. With an elevated payout ratio, leverage well above our comfort zone, & slow asset sales, we see good probability of a cut. Despite the sizeable unit price pullback, reiterate Sector Perform”
* Canaccord Genuity’s Yuri Lynk raised his target for AtkinsRéalis Group Inc. (ATRL-T) to $125 from $118 with a “buy” rating. The average is $113.
“In our view, ATRL is well-positioned in favourable end-markets that are experiencing consistent growth on the back of secular trends such as electrification, decarbonization, and infrastructure renewal and expansion. Management is executing well and largely delivering on its targets. Recent momentum in the Nuclear segment is particularly important for the stock because it’s the part of the business we ascribe the highest valuation to, based on where comparables trade. Our BUY rating is predicated on ATRL’s unique nuclear business backstopped by proprietary technology (CANDU); its balance sheet, which is the strongest in the group with over $250 million of net cash; and its discounted valuation,” said Mr. Lynk.
* TD Cowen’s Sean Steuart raised his Brookfield Renewable Partners L.P. (BEP-N, BEP.UN-T) target to US$35 from US$31 with a “buy” rating. The average is US$31.50.
“We believe that Q3 consensus estimates for Canadian renewable IPP equities appropriately reflect below-LTA production potential across several regions. Investors have looked past weak year-to-date results and volatile U.S. policy, supporting strong equity returns the past seven months. We attribute gains to a realization that the growing power supply deficit supports rising development returns,” said Mr. Steuart.
* TD Cowen’s Tim James bumped his Chorus Aviation Inc. (CHR-T) target to $30 from $29, exceeding the $28.54 average, with a “buy” rating.
“Q3 CHR results should demonstrate predictability of Air Canada CPA and provide confidence in Voyageur 2025 revenue target, the combination of which should bias stock higher over time,” he said.
* Desjardins Securities’ Jerome Dubreuil lowered his Cogeco Communications Inc. (CCA-T) target to $71 from $73 with a “hold” rating. The average is $73.20.
“CCA’s FCF trajectory continues to be encouraging. However, it is difficult for us to look past the revenue decline in the US, which deteriorated this quarter. Management anticipates improvements in the coming quarters, but the competitive intensity remains elevated south of the border. On a positive note, Canadian Internet net adds were strong, and the situation appears to be more under control north of the border. We would remain on the sidelines at this point,” he said.
* Canaccord Genuity’s Doug Taylor cut his Coveo Solutions Inc. (CVO-T) target to $11 from $13 with a “buy” rating. The average is $10.55.
“While Coveo’s Q2 performance was otherwise tracking to the expected reacceleration plan, the stock has retraced significantly on the back of a 3-per-cent ARR hit from the renegotiation of its contract with Salesforce. Given this is an isolated issue – few customers have an internal competitive offering – the significant 25-per-cent-plus pullback in the stock today is tough to justify. As such, we maintain a BUY rating with a lower C$11.00 target (from C$13.00) on slightly lower near-term growth assumptions reflecting this isolated impact. We maintain a BUY rating and believe that, as we had seen in prior quarters, gradual reacceleration of top-line growth will be rewarded with valuation expansion, particularly as the sting of the Salesforce churn fades,” he said.
* CIBC’s Paul Holden hiked his IA Financial Corp. Inc. (IAG-T) target to $173, exceeding the $163.29 average, from $150 with an “outperformer” rating.
“We are resuming coverage on IAG following the close of its acquisition of RF Capital, with an Outperformer rating. There is no impact on our 2026E EPS and our newly introduced 2027E EPS includes 1-per-cent EPS accretion from the RF acquisition. The acquisition does not have a material impact on our earnings outlook or valuation. We continue to like IAG for strong sales and earnings momentum across multiple business lines,” said Mr. Holden.
* RBC’s Pammi Bir increased his Morguard REIT (MRT.UN-T) target to $6 from $5.50 with a “sector perform” rating. The average is $5.83.
“Post Q3 results that exceeded our call, our outlook on MRT has modestly improved. While organic growth remains under heavy pressure from weakness in office, better momentum in retail from leasing and operating cost/tax savings have pushed our estimates higher. No doubt, there’s still some heavy work to do, including addressing HBC exposure and strengthening the balance sheet. That said, progress is being made, with further advances anticipated next year,” said Mr. Bir.
* Ahead of the Nov. 10 release of its third-quarter results, National Bank’s Vishal Shreedhar raised his Premium Brands Holdings Corp. (PBH-T) target to $104 from $101 with a “sector perform” rating, expecting to see an acceleration in sales for its Specialty Foods business and pointing to the exploration of acquisition and divestment opportunities. The average is $112.42.
“Over the medium term, we believe that PBH’s outlook will be supported by solid organic growth and EBITDA margin expansion (to 9.5 per cent in 2026E from 9.2 per cent in 2025E); we continue to monitor execution. We value PBH at 9.5 times our 26/27 EBITDA. The higher price target largely reflects a roll forward of our valuation period,” said Mr. Shreedhar.
* CIBC’s Erin Kyle raised her Well Health Technologies Ltd. (WELL-T) target to $6 from $5.25 with a “neutral” rating. The average is $7.72.