Inside the Market’s roundup of some of today’s key analyst actions
After raising his forecast for Quebecor Inc. (QBR.B-T) ahead of the release of its first-quarter results on May 14, National Bank Financial analyst Adam Shine upgraded his recommendation for its shares to “outperform” from “sector perform” in response to a recent pullback in price.
In a client report released before the bell, he predicted the company’s Cable business “could be reverting” to revenue growth for the first time since the third quarter of 2023, while its Wireless segment continues to see share gains with average revenue per user growth being “seen again.”
Mr. Shine is currently projecting revenue of $1.388-billion, exceeding the consensus forecast of $1.362-billion. His earnings before interest, taxes, depreciation and amortization (EBITDA) estimate of $577-million and adjusted earnings per share expectation of 88 cents both fall short of his peers ($586-million and 96 cents, respectively).
“We have Telecom revs up 4.6 per cent and EBITDA up 5.8 per cent (consensus estimates up 1.8 per cent and 3.4 per cent),” he noted. “We’re above Street $3-million on Cable revs, $5-million on Wireless Services revs, $25-million on Wireless Equipment, and $14-million on Telecom EBITDA. We’re lower on Media revs and its loss which should materially improve over last year. Establishing Head Office line at EBITDA is proving more difficult given share price moves and volatility around share-based comp (SBC). We note that $35-million was reported in 4Q25 and $17-million in 1Q25. We prefer to be more conservative and have opted for $38-million (CE $12-million) to drive total EBITDA to a strong 5.0 per cent. Of course, latter would be even higher but for evolving elevated SBC. Share repurchases in 1Q were 1.55 million (average $53.99).”
Mr. Shine increased his target for Quebecor shares to $59 from $57, pointing to an estimate total return of 12.8 per cent. The average target on the Street is $60.49, according to LSEG data.
“Target based on average of 2026 estimated DCF and 2027 estimated NAV, with implied EV/EBITDA of 7.9 times 2026 estimates and 7.4 times 2027 estimates, which are up 0.3 times due to positive forecast adjustments rather than valuation changes,” he explained. “Inasmuch as capex has been telegraphed to rise $50-million/year, we trimmed this assumption post-2027.”
Following a period of “solid” share price appreciation, National Bank Financial analyst Vishal Shreedhar is “moving to the sidelines” on Saputo Inc. (SAP-T), lowering his rating to “sector perform” from “outperform” previously.
“Since the beginning of 2025, SAP has delivered total return of 85.9 per cent versus the S&P/TSX Capped Consumer Staples index at 18.9 per cent, he explained. ”Given a limited return to our target, as well as strong total returns, we are downgrading SAP."
Despite his change from an investing perspective, Mr. Shreedhar thinks the Montreal-based dairy giant “continues to have opportunity to benefit from ongoing initiatives/factors that will reflect more fulsomely in profitability, as well as building organic growth and share repurchases.”
“SAP’s balance sheet is solid, which could ultimately support a higher pace of buybacks,” he added. “NBCM models net-debt-to-EBITDA of 1.5 times in Q4/F27E from 1.8 times in Q4/F26E; SAP targets a leverage ratio of 2.25 times.
“Over time, lower business volatility reflecting the Argentina divestiture coupled with more consistent performance could place upward pressure on the multiple. That said, we also anticipate higher spending in marketing initiatives, which may moderate near-term growth.”
Seeing a “more balanced” risk-reward proposition, the analyst reaffirmed a $46 target for Saputo shares. The average on the Street is $48.25.
“Looking forward, we expect investor focus to be on steady execution amid a volatile commodity and uncertain macro backdrop,” he said. “Given that Saputo has largely extracted benefits from its longstanding capital initiatives, we believe the story will shift to a focus on organic growth.”
Scotia Capital analyst Jonathan Goldman thinks Cascades Inc.’s (CAS-T) updated outlook for its first quarter of 2026 was “unsurprising” given the difficult macroeconomic conditions, however he did lower his EBITDA projection by 11 per cent to match the warning.
Shares of the Kingsey Falls, Que.-based paper and packaging company fell 3.4 per cent on Friday after it cut its EBITDA guidance to be in the range of $115-million to $120-million, down from a previously disclosed $130-million to $142-million. He attributed the change to weather disruptions in the U.S. and heightened volatility in transportation and fuel surcharges as well as the impact of recent geopolitical events negatively on consumer confidence and spending.
“Higher oil prices could exacerbate headwinds for U.S. consumers and corrugated box demand, limiting producers’ ability to pass through higher operating costs and preserve the price/cost spread, despite the massive wave of capacity rationalization last year,” said Mr. Goldman in a note titled One Battle After Another. “RISI [Resource Information Systems Inc.] estimates that the rise in diesel and transportation costs throughout the fibre supply chain adds US$20-30/ton of incremental cost inflation with diesel at $5.40 per gallon. While the industry pushed through a US$40/ton liner increase in March, that follows on a surprise -US$20/ton decrease in February, taking the year-to-date net increase to +US$20/ton. The baseline forecast calls for another US$20/ton increase in 2026, but that is predicated on the assumption that oil prices will begin to ease through the year, which is still a big ‘if’.”
While he acknowledging his earnings revision is “backwards-looking,” Mr. Goldman emphasized its shares are “down a similar quantum of 10 per cent over the next six weeks.
“CAS shares trade at 5.1 times EV/EBITDA and 15-per-cent FCF yield on our 2026E/2027E,” said Mr. Goldman. “Shares could be range-bound at lower levels, but we believe management has good visibility on the $100-million of profitability improvements and remaining asset sales such that it could backfill macro headwinds and achieve its deleveraging target. While the long-awaited industry recovery could get pushed out another year, CAS offers a lot of torque to macro, especially to lower oil prices, which would boost demand and margins. With midterms coming, we think GOP is incentivized to get fuel prices down. From a trading perspective, CAS shares have traded between $9/share and $15/share 75 per cent of the time over the past 10 years, so we find the current price an attractive entry point.”
Maintaining his “sector outperform” rating, Mr. Goldman dropped his target to $14.50 from $16.75. The average is $15.35.
Elsewhere, others making revisions include:
* Desjardins Securities’ Frederic Tremblay to $13 from $15 with a “hold” rating.
“The update reinforces our previously communicated cautious stance on demand for packaging products in a difficult and volatile consumer/macro environment. We expect this to continue in the near term, potentially mitigated by pricing efforts. We also believe that some cost pressures are persisting in 2Q. Operational execution has been inconsistent and, in our view, should remain an area of focus in order to reduce volatility in quarterly results,” he said.
* National Bank’s Ahmed Abdullah to $14 from $15 with a “sector perform” rating.
In a separate report released Monday, Mr. Goldman said he sees Canadian engineering and construction firms as “fundamentally sound” and “irrationally depressed” heading into quarterly earnings season.
“With the cohort having reported just over six weeks ago, we don’t anticipate any major negative surprises in 1Q, especially with WSP providing quarterly guidance,” he said. “But the outlooks and backlogs will be scrutinized as each quarter becomes a referendum on AI disruption. We have more confidence in the estimates than in the multiples as the overhang could last for quite a long time: Growth significantly outperformed Value for 2+ years during the Dot-Com boom, for example. Consensus among investors we speak to is AI is not a structural risk, but the E&Cs were already well-owned so finding the incremental buyer is a tall order. If oil price shocks stoke recessionary fears, we could see incremental fund flows into more defensive industrial names.
“In the U.S., the group is lapping easy comps and public non-residential construction spend tends to accelerate in a mid-term election year. Government spending typically peaks the year right before a presidential election, troughs right after, and expands until the next election. We could also see a rush to spend unused IIJA money before funding lapses in September. We already observed this dynamic for NFI-CA (Sector Outperform; $22 TP) in 4Q when public transit bus customers converted options into firm orders. Moreover, our analysis found that higher defense spending does not crowd out infrastructure spend with the two moving mostly in lockstep.”
Mr. Goldman reconfirmed WSP Global Inc. (WSP-T) as his “top pick” for 2026, raising his target for its shares by $2 to $286 with a “sector outperform” rating. The average target on the Street is $309.71.
“Shares are down 23 per cent from peak last June, more than STN down 17 per cent and ATRL which is flat,” he explained. “WSP is now the cheapest of the three Canadian E&Cs trading at 11.5 times EV/EBITDA on our 2026E/2027E compared with STN at 11.9 times and ATRL at 12.3 times. The last time WSP was cheaper than both STN and ATRL was back in March 2017 and shares went on to outperform by 18 per cent and 34 per cent, respectively, in the NTM [next 12 months].
“While the other two have more near-term M&A optionality, WSP has better operating metrics (revenue growth, margin expansion, earnings growth) and upside to estimates, in our view, underpinned by TRC integration, APAC recovery in 2H, and management conservatism, particularly on margins. According to the Dodge Momentum Index, “non-res planning momentum in March was powered almost entirely by data center projects, with most other sectors easing back [reflecting] a natural reset after the outsized growth in late 2025”. That set-up favors WSP with 20 per cent of exposure in Power & Energy. Pro forma net debt to EBITDA was 2.3 times exiting 2025 and the company expects to be less than 2 times within 12 months of closing [of the acquisition of TRC Companies] (February 26, 2026)."
The analyst trimmed his target for shares of AtkinsRéalis Group Inc. (ATRL-T) by $1 to $105 with a “sector outperform” rating. The average is $119.48.
“Downside risk to ATRL or management conservatism? 1Q guidance calls for 18 per cent to 20 per cent of full-year adjusted EBITDA whereas consensus is modeling 20.5 per cent, which suggests EBITDA could miss by more than 7 per cent,“ he said. ”But, we don’t see anything inherently wrong with consensus: in the past three years, 1Q accounted for 21 per cent of full-year EBITDA. Moreover, the company is lapping the easiest comp of year in ES on both organic growth (down 3.8 per cent) and margins (14.8 per cent). The Middle East could be a headwind, but we believe investors would look through any ES weakness since we think they are playing ATRL primarily for the Nuclear angle and M&A, which are more likely 2H events. For a multitude of reasons, we believe Atkins will be selected as preferred vendor and win at least two to four new builds in Canada, which is what we conservatively bake-into our Nuclear valuation. Leverage is the lowest of the CAD E&Cs with the B/S in a net cash position. We are also encouraged to see CEO Ian Edwards shares in the open market in mid-March."
RBC Dominion Securities analyst Walter Spracklin thinks domestic PMI data points to “a potential rebound” for Canadian transportation companies heading into quarterly earnings season.
“We flag that the mid-quarter data volume updates we track (U.S. LTL and Cass) highlighted a weak volume backdrop during the quarter,” he explained. “That said, Canadian PMI readings are trending at or above 50 each month to start the year pointing to a potential rebound, consistent with commentary from other Industrials that they are starting to see a nice pick-up in activity in March. We therefore have increasing confidence in our base-case assumption for a modest recovery in H2, although this is starting to be reflected in valuation at both MTL and TFII in our view.
“Our Q1 estimates are unchanged into quarter, except at SJ and at CJT, which we took down to reflect indication that consumer discretionary goods spending ticked lower early this year. However, continue to see depressed valuation and secular e-commerce tailwinds as creating a compelling investment opportunity in CJT shares.”
With that positive view, Mr. Spracklin made a series of target price adjustments to stocks in his coverage universe. They are:
* Cargojet Inc. (CJT-T, “outperform”) to $140 (Street high) from $143. The average is $117.74.
Analyst: “Our Q1 EBITDA estimate decreases to $80-million (from $83-million), in line with consensus $80-million, driven by indication Canadian consumer spending on discretionary goods is pulling back, according to RBC Economics. Our 2026 estimate also moves lower to $334-million (from $340-million) on lower discretionary spending; although we remain above consensus $327-million and continue to see CJT as very well positioned to benefit from operating leverage on rising volumes due to increasing eCommerce penetration and better margins driven by improving capacity utilization.”
* Mullen Group Ltd. (MTL-T, “outperform”) to $19 from $17. Average: $17.67.
Analyst: “Our Q1 EBITDA estimate remains at $79-million, above consensus $75-million on better margins. Looking ahead, we expect recent PMI readings and potential infrastructure investment to favourably affect demand and sentiment in the shares. We therefore took higher our target multiple to 7 times (from 6.5 times) to reflect an improving (albeit uncertain) trucking outlook.”
* Stella-Jones Inc. (SJ-T, “sector perform”) to $93 from $95. Average: $97.91.
Analyst: “Our Q1 EPS moves to $1.27 (from $1.47) in line with consensus of $1.28 and our 2026 EPS moves to $6.01 (from $6.20), below consensus of $6.12. While we see utility pole momentum continuing in 2026, we see the Tie outlook as uncertain and flag risk given aggressive behaviour from Stella’s main competitor. Target multiple remains at 14x and when applied to our lower estimates results in our price target of $93.”
* Westshore Terminals Investment Corp. (WTE-T, “outperform”) to $39 from $34. Average: $34.
Analyst: “Our Q1 EBITDA estimate remains unchanged at $29-million. Our 2026 throughput estimate remains at 26Mt, a touch above the recent guidance update for volumes of 25.5Mt. Key is that we have made substantive changes to our WTE model with this update: we took out the thermal coal ban impact by 2030; we now assume thermal is used to “top up” capacity longer term; and we conservatively reduced full capacity to 29Mt longer-term (from 30-32Mt). Furthermore, we removed our premium to NAV discount (now running right at NAV) reflecting upcoming completion of the potash conversion."
Following first-quarter 2026 results that below his expectations, RBC Dominion Securities analyst Ryland Conrad thinks MTY Food Group Inc. (MTY-T) stock is likely to “remain a show me story pending greater visibility.”
“While the outcome of the ongoing strategic review could be a catalyst for the shares, there remains considerable uncertainty with respect to the scope, probability, timing and valuation of any potential transaction(s),” he said. “As such, our focus remains on the organic growth trajectory, and although we believe management is working through recent challenges and gradually making progress strengthening the network, we expect sustained macro and competitive headwinds to limit any meaningful improvement in the near term. We continue to see value in the shares at 6.4 times FTM [forward 12-month] EV/EBITDA and the 14-per-cent 2026 estimated FCF yield provides some downside protection from current levels, but we remain on the sidelines pending greater visibility.”
Shares of the Montreal-based restaurant conglomerate fell 3.9 per cent on Friday after it reported revenue of $268-million for the quarter, down 6 per cent year-over-year and below Mr. Conrad’s $279-million estimate. Adjusted EBITDA of $60-million was up 2.3 per cent and above the analyst’s $57-million projection, however it was down 7.1 per cent at $54-million when removing employee retention credits.
“While we did see some organic growth green shoots emerging in Q4/25, both consolidated SSS [same-store sales] of negative 2.5 per cent (versus down 1.7 per cent in Q4/25) and net location closures of 46 (versus -32 in Q1/25) were below our expectations this quarter in what remains a challenging operating environment (macro, competition),” the analyst said.
“Having said this, management reiterated the expectation of delivering positive net location growth for 2026 (versus 1 in 2025), indicating that: (i) Q2/26 is off to a good start while the current construction pipeline (200 locations) is among the strongest management has seen; (ii) the pipeline is increasingly being driven by existing franchisees that support a lower- risk expansion profile; and (iii) the company is actively deploying new site selection tools to identify white space opportunities and improve location quality. In addition, while acknowledging ongoing volatility in consumer sentiment, management is cautiously optimistic on Q2/26 with: (i) post-holiday traffic through Q1/26 negatively impacted by the suspension of discounted gift card sales at Costco for select banners; (ii) sales through March and April ‘significantly better’ (particularly for the U.S. with SSS of negative 3.6 per cent in Q1/26) notwithstanding some impacts from snow/ice storms; and (iii) no impacts to consumer demand observed thus far from higher fuel prices.”
Also noting a lack of updates on the progress of the company’s strategic review, Mr. Conrad reduced his target for MTY shares to $46 from $48, keeping a “sector perform” rating. The average is currently $46.80.
Elsewhere, others making changes include:
* Raymond James’ Michael Glen to $45 from $46 with a “market perform” rating.
“From a clarity/transparency perspective, we believe investors deserve more insight into the various transactions being contemplated, what the company has been approached on, and if there is any type of portfolio sale being considered (e.g., splitting Canada/U.S. or sale of certain brands). We do believe buyers would definitely have interest in MTY’s top-performing brands, which we regard as: Cold Stone, Wetzel, Thai Express, Mucho Burrito, and perhaps a few others, but we would struggle with the underlying valuation for the balance of 80+ smaller brands in the portfolio. Overall, our view on the outcome of the strategic review has fluctuated over the past 6 months. We do think there will be some form of transaction announced, BUT we would be reluctant to encourage investors to invest on this basis,” said Mr. Glen.
* Scotia’s John Zamparo to $45 from $46 with a “sector perform” rating.
“Another quarter without a strategic review update lowers our confidence in a near‑term takeout, though it remains the key catalyst,” he said. “We judge the probability of a total/partial sale as a touch lower than prior (now 30 per cent vs 50 per cent before), though this certainly still could occur, and we assume an unchanged $52/share (8 times 2026 estimated GAAP EBITDA) as a takeout price. We believe investors may need to wait until Q3 reporting for a conclusion (roughly one year at that time). In our scenario of continuing on, we assume $42 (9.5 times our F27 estimated EPS), which moves our target price to $45. We believe multiple compression could occur because of potentially low or negative SSS through 2026, the specter of inflation crimping corporate and retail margins, and ongoing profitability drags from corporate ownership of underperforming stores. Net openings should be a positive in 26, though positive comps serve as the other potential source of a re-rating.”
TD Cowen analyst Vince Valentini raised his ratings for Cogeco Communications Inc. (CCA-T) and Cogeco Inc. (CGO-T) to “buy” from “hold” on Monday.
For Cogeco Communications, he trimmed his target to $83 from $85. The average is $75.70.
“We have attempted to be cautious and pessimistic with our forecasts (setting them below guidance) and valuation (only 4.25 times EBITDA multiple for the U.S. segment, and then we continue to apply an extra 15-per-cent risk/uncertainty discount to our total company valuation), but we cannot get our target price low enough to justify a Hold rating,” he explained.
For Cogeco, his target slid to $81 from $85, above the $75.50 average.
“Following our concurrent upgrade of Cogeco Communications to BUY on the back of too much bad news being priced into the stock, we are upgrading Cogeco Inc. ... This is despite a modest lowering of our CGO price target to $81.00 (from $85.00), which also reflects a more explicit 15-per-cent holding company discount,” he said
Others making target adjustments for Cogeco Communications include:
* RBC’s Drew McReynolds to $74 from $77 with a “sector perform” rating.
“Despite a competitively intense operating environment in the U.S., management continues to execute on multiple growth initiatives that include rural broadband expansion, North American wireless penetration, brand expansion, digitization and Canadian Broadband and America Broadband integration. While we remain on the sidelines given the challenged revenue environment and ongoing elevated competitive intensity in the U.S., we continue to see value in the stock and look for better visibility on potential catalysts that could include an eventual uptick in revenue growth (driven by footprint expansion, price increases and/or wireless traction), the realization of greater-than-expected synergies, and/or any potential easing in U.S. competition/concerns,” said Mr. McReynolds
*Scotia’s Mager Yaghi to $72 from $74.25 with a “sector perform” rating.
* Canaccord Genuity’s Aravinda Galappatthige to $70 from $74 with a “buy” rating.
* Desjardins Securities’ Jerome Dubreuil to $68 from $71 with a “hold” rating.
In other analyst actions:
* In response to Blackline Safety Corp.’s (BLN-T) agreement to be taken private by U.S. private equity firm Francisco Partners in a deal valued at up to $850-million, TD Cowen’s David Kwan downgraded its shares to “sell” from “hold” with a $9 target, up from $8. The average is $9.48.
“We believe the probability of a superior bid is low given the (targeted) sales process, attractive valuation, and shareholder support, amongst other things, and thus believe investors should tender to the offer,” he said.
* TD Cowen’s Cherilyn Radbourne raised his targets for Canadian National Railway Co. (CNR-T, “buy”) to $171 from $164 and Canadian Pacific Railway Ltd. (CP-T, “hold”) to $117 from $112. The averages are $155 and $127.32, respectively.
“Q1/26 volumes beat vs. low expectations, and our 2026 outlook remains muted due to tough PY [prior year] comps in intermodal and macro/energy uncertainty. We see a more favourable risk/reward in CN given improving sales/operational execution and a 2.5 times valuation discount. CPKC’s narrative showed cracks in 2025 after it missed lowered guidance, and guidance could be at risk again in 2026 after a slow start,” she said.
* After hosting Chemtrade Logistics Income Fund (CHE.UN-T) at National Bank’s inaugural Canadian Leveraged Finance Conference earlier this month and for a day of meetings with institutional investors, analyst Zachary Evershed hiked his target for its shares to $23.50, exceeding the $18.50 average, from $18 with an “outperform” rating.
“Given disruptions in the Strait of Hormuz, international caustic producers are facing higher energy costs, ratcheting pricing higher as electricity represents 75 cent of EC [Electrochemicals] variable costs,” he said. “As Chemtrade’s hydro power is unaffected, the company is positioned to capture the rise in pricing as pure margin. Each US$100/MT move adds $25 million in EBITDA (with a one-quarter lag), and while the reopening of the Strait should eventually see energy prices ease, the infrastructure damaged across the Middle East (e.g., Ras Laffan in Qatar) likely means CHE’s competitors’ energy costs will remain higher for an extended period of time.”.
* TD Cowen’s Aaron MacNeil raised his targets for Enerflex Ltd. (EFX-T, “buy”) to $41 from $39 and Precision Drilling Corp. (PD-T, “hold”) to $127 from $123. The averages are $36.13 and $146.22, respectively.
“Canadian Energy Services companies with U.S. exposure may start to see positive rate of change in fundamentals given the Iran war. However, given broader energy sector performance in late 2025/early 2026 as a result of rotation out of other sectors, we believe that sector valuations are not compelling. To this end, stock selection remains critical in our view and EFX remains our Top Pick,” said Mr. MacNeil.
* RBC’s Michael Harvey made a group of target changes to Canadian E&P companies in his coverage universe ahead of earnings season. They include: Freehold Royalties Ltd. (FRU-T, “sector perform”) to $18 from $17 (versus $18.66 average), Kelt Exploration Ltd. (KEL-T, “outperform”) to $11 from $10 (versus $10.77), Paramount Resources Ltd. (POU-T, “sector perform”) to (versus $32.22), PrairieSky Royalty Ltd. (PSK-T, “outperform”) to (versus $33.95), Tamarack Valley Energy Ltd. (TVE-T, “outperform”) to $12 from $11 (versus $10.86) and Whitecap Resources Inc. (WCP-T, “outperform”) to $17 from $16 (versus $15.57).
“We expect focal points during the reporting cycle to mainly revolve around uses of free cash flows amid higher crude prices; our expectation is for a near-term focus on higher buybacks and debt repayment with capital programs increasing later this year if pricing remains robust. 2) AECO prices experienced a brief rebound during the quarter, but have since pulled back as supplies have remained robust, keeping pace with increased demand from LNG Canada. Our estimates largely sit above FactSet consensus for now, though we expect dispersion to tighten as the street marks to market Q1 commodity prices,” said Mr. Harvey.
* In a research report previewing first-quarter earnings season for the global automotive industry, RBC’s Tom Narayan cut his Magna International Inc. (MGA-N, MG-T) target to US$57 from US$59 with a “sector perform” rating. The average is US$65.36.
“Our Q1/26E revenue of $10.0-billion and EBIT of $413-million are below consensus expectations ($10.3-billion and $420-million, respectively),” said Mr. Narayan. “Management expects Q1 EBIT to represent the trough for the year, consistent with S&P Global’s production forecast trajectory.”
He added: “U.S. OEMs and suppliers have recently pulled back amid macroeconomic concerns tied to geopolitical tensions in the Middle East. Despite oil prices peaking in early-April due to the Iran conflict, the RBC Energy Team expects Brent/WTI to be around $80/$75 per barrel long term. While elevated fuel prices may support EV adoption in Europe, we expect limited mix shift in the U.S., where government incentives have been the primary demand driver for EV sales. OEMs could face greater macro sensitivity relative to suppliers, considering 1) higher difficulty in passing along commodity inflation costs; and 2) USMCA resolution could be delayed as a result of the Iran conflict. The U.S. suppliers generally have negligible exposure to the Middle East, though S&P Global announced moderate cuts to Europe and China production in its March forecast update. Despite rising raw materials costs, most suppliers typically maintain 1-2 quarters of inventory, and we believe future cost increases can be passed along to the OEMs. Importantly, we think neither OEMs nor suppliers cut guidance in Q1/26. That said, if the Iran conflict is prolonged or if higher oil prices adversely impact consumer confidence, we could see guidance cuts in H2/26. In China, the revised subsidy framework and reduction of the EV purchase tax credit could adversely impact mass-market players, where western suppliers remain structurally under-indexed.”
* Canaccord Genuity’s Aravinda Galappatthige initiated coverage of geophysical services provider Metatek-Group Ltd. (MTEK-T), which completed its initial public offering and commenced trading on March 19 on the TSX, with a “buy” rating and $8 target.
“We see Metatek as a multi-year, high-growth story with a compelling value proposition and good underlying visibility owing to the high demand for its core offering,” he said.
* Following the close of an upsized $40-million private placement, Raymond James’ Stephen Boland hiked his Stack Capital Group Inc. (STCK-T) target to $28.50 from $22, which is the average, with an “outperform” rating.
“In our view, the upsizing of the offering and Stack’s ability to raise equity at approximately NAV represent a clear validation of its investment strategy. Investor demand reflects the Company’s track record of accessing high-quality, late-stage private opportunities, including CoreWeave, OpenAI, and other material holdings. There is continued momentum in private market valuations, particularly across AI, space, and defense-related assets. We believe the market is increasingly supporting Stack’s ability to originate and monetize similar investments,” he said.