Inside the Market’s roundup of some of today’s key analyst actions
“Encouraged by early signs of operational improvement under new management” and believing “better execution should lead to a re-rate [for its] shares,” RBC Dominion Securities analyst Andrew Wong upgraded Ag Growth International Inc. (AFN-T) to an “outperform” rating from “sector perform” previously.
“We think the new management team has demonstrated strong execution in turning around AGI in the past several months, focusing on improved cash conversion, cost savings, and de-leveraging,” he said. “We see the $105-million release of Brazilian receivables from escrow as positive and immediately supportive for debt reduction efforts. We are further encouraged by the ERP termination, cost savings target increase to $30-million (from $20-million), and a transition away from large projects to equipment only projects in Brazil which should improve cash conversion. We note project execution issues described in Q4/25 were not reiterated this quarter. Management is also conducting a strategic review of all assets, with a plan to monetize non-core assets (i.e. not within the core grain handling competencies) to help pay down debt.”
In a client note released before the bell, Mr. Wong predicted North American farm market conditions have “likely bottomed and could improve in the next 6-12 months, driving improved earnings into 2027.”
“Management noted dealer inventories have normalized, removing a key overhang that weighed on Farm segment sales throughout 2025,” he explained. “Farmers continue to face pressures from elevated input costs and trade uncertainty, but we think the worst is behind and there is potential for modest improvement through 2026 given the weak 2025 base. Commercial sales will have a tough comp vs. 2025 due to the decision to move away from cash-intensive large projects in Brazil. Additionally, slower sales in North America and India have pressured margins. However, the company is taking steps to right-size and better-utilize the labour force to reduce margin pressures until Commercial market demand improves.”
Emphasizing de-leveraging efforts remain “a key focus” for management as the Winnipeg-based company “remains burdened by significant gross debt at $1-billion,” Mr. Wong hiked his target for its shares to $30 from $25. The average target on the Street is $25.67, according to LSEG data.
“We think investors will welcome these changes as progress is made through the year, which should justify a re-rate in AFN’s depressed valuation,” he said.
In a client report titled Win-Win, Scotia Capital analyst Jonathan Goldman emphasized NFI Group Inc. (NFI-T) has just logged its third consecutive “clean” quarter, which he called “the key for an execution story – and the trend leaves ample upside for a guidance raise later in the year.”
“We think the decision to maintain guidance was a prudent move – and the right one as the company reestablishes a track record with investors,” he added. “EBITDA/EU of $60K was a quarterly record, and at a level we view as a sustainable baseline. U.K. margins are structurally higher following restructuring actions – and either deliveries improve supporting higher operating leverage; or they don’t, supporting richer mix. That’s on top of NA transit deliveries that should accelerate through the year as the All Canadian Build ramps.
“All that to say, earnings power is incrementally higher today than it was a quarter ago and much more reliable. NFI shares are trading at 6.6 times EV/EBITDA on the midpoint of guidance that is looking increasingly conservative and realistic. NFI is our top small cap pick, and we would be buyers following the strong quarter and negative stock reaction (so far).”
On Thursday, the Winnipeg-based bus manufacturer reported first-quarter sales of $842-million, falling below the Street’s expectation of $905-million. However, adjusted EBITDA of $86.1-million topped the consensus of $79.8-million, while adjusted earnings per share of 18 cents matched estimates.
“NFI reported an 8-per-cent beat supported by higher Manufacturing margin,” said Mr. Goldman. “Deliveries of 978 EUs were a bit light (SGBMe 1,065), primarily due to lower U.K. deliveries, but were more than offset by higher unit economics with EBITDA/EU of $59.5K (Scotia estimate $50.1K) setting a 1Q record, primarily due to a mix of lower U.K. deliveries. Adjusted EBITDA also included a one-time restructuring add-back of $8 million. Excluding that, adjusted EBITDA would have been closer to in-line and EBITDA/EU would have been slightly above our estimate. To be clear, that is still a very positive result given it was another clean quarter in an execution story. Moreover, 1Q is seasonally the weakest quarter, and we expect deliveries and profitability to ramp through the year.
“Adjusted EBITDA guidance was maintained at $370-million to $410-million, which we believe incorporates a good deal of conservatism. For one, the company just beat the quarter by $6-million; and two, LTM [last 12-month] EBITDA was $360-million and things are getting better operationally and seasonally. Backlog remains elevated at $13-billion; backlog ASPs [average sale prices] were up year-over-year. NFI shares trade at 6.6 times EV/EBITDA on the midpoint of guidance.”
Maintaining his “sector outperform” rating for NFI shares, Mr. Goldman increased his target to $25 from $24.50. The average is $25.33.
Elsewhere, National Bank’s Cameron Doerksen increased his target to $26 from $22 with an “outperform” rating.
“Our constructive view on the stock is based on the following: (1) NFI has a solid $13-billion backlog that should facilitate bus delivery growth through 2027; (2) the company’s margins should benefit from ongoing tailwinds from better pricing in backlog as well as higher throughput; (3) supply chain issues, particularly around seats, have eased; (4) higher EBITDA and cash flows will bring leverage down, leading to lower interest expenses,” said Mr. Doerksen.
RBC Dominion Securities analyst Maurice Choy sees Enbridge Inc. (ENB-T) poised to benefit from “a favourably evolving macro for energy infrastructure.”
“As the market is reassured by the in line Q1/26 results and the reiteration of guidance ranges, we find ourselves better appreciating the platform and scale that Enbridge has today,” he said. “These characteristics, alongside an evolving macro for energy infrastructure, are offering it accelerated opportunities with attractive risk-adjusted returns. For investors, all these should lead to a more durable growth trajectory that extends beyond 2030, if not also a higher growth rate moving forward. With multiple catalysts in the near-term to validate this view, and backed by its tried-and-tested capital allocation philosophy, we remain constructive on Enbridge’s stock.”
Mr. Choy thinks many of the energy themes that Enbridge highlighted at its March 2025 Investor Day “not only are playing out (with global customers seeking reliable, secure and affordable energy), but may even be amplified (with energy security being imperative given the recent geopolitical events).”
“These energy themes ultimately create simultaneous expansion opportunities across all four of Enbridge’s franchises, with the value of incumbency offering the company more attractive returns amid the ‘best set of growth opportunities’ that management has seen over the past 10-15 years,” he explained.
“Ratably adding new projects; positioned to extend its current growth cycle. Enbridge continues to demonstrate the breadth and depth of its opportunity set, sanctioning $2 billion of diverse projects during the quarter. This brings the total projects added to the secured growth program since the Investor Day to $17 billion, with this sanctioned backlog now standing at $40-billion. For now, we remain anchored on last quarter’s message that has Enbridge sanctioning $10-20-billion of projects over the next 24 months. However, we sense an improved durability of this pace, as the evolving macro for energy infrastructure may motivate elevated customer interests in pulling forward previously-contemplated projects, expanding the scope of energy solutions sought from Enbridge, or both.
Also touting “encouraging commercial updates to support Enbridge’s reaffirmed medium-term growth outlook of 5 per cent,” Mr. Choy raised his target for its shares to $79 from $76 with an “outperform” rating. The average is $77.89.
Elsewhere, seeing its project backlog “filling up nicely,” Mr. Kenny raised his target to $73 from $72 with a “sector perform” rating.
Desjardins Securities analyst Lorne Kalmar thinks Chartwell Retirement Residences’ (CSH.UN-T) first-quarter funds from operations beat was “overshadowed by a flurry of activity on the transaction front, as well as the announcement of a new Ontario development partnership.”
“CSH has developed a track record for exceeding Street expectations while diligently growing its portfolio and improving the asset quality,” he added in a client note. “We still see meaningful earnings upside as rent growth begins to accelerate and we expect CSH to continue to enhance its portfolio via acquisitions and, increasingly, developments.”
After the bell on Thursday, the Mississauga-based REIT reported FFO per unit of 27 cents, up 32 per cent year-over-year and 2 cents above Mr. Kalmar’s expectation due to higher net operating income margins and expense.
However, that result was overshadow by the announcement of the close of its $416-million deal to divest of its to resolve Competition Bureau concerns as well as the $382.5-million acquisition of a 30-per-cent interest in the Seasons Retirement Communities portfolio alongside Fengate Asset Management, which is acquiring the remaining 70 per cent. Chartwell will have the option to participate in future Fengate developments in Ontario.
“This was a key focus of the quarter as not only does this acquisition add a 30-per-cent interest in 23 newly built Class A residences in its Ontario, Alberta and B.C., it provides future optionality on the acquisition front (we are modelling the acquisition of an additional 20-per-cent interest in the portfolio in 3Q27) and creates an Ontario-focused development pipeline,” said Mr. Kalmar. “The high-5-per-cent going in yield ($22-million of NOI) is expected to stabilize at a low 6 per cent over the next 12–18 months as capital programs are completed and newly opened residences (London and St. Catherines were built in 2024) lease-up. The development arrangement will be similar to the one with Batimo and vend-ins are expected to average 1–2 properties/year. Management also does not anticipate the deal to be subject to a review by the Competition Bureau and is confident that its closing will occur within 60 days. This acquisition will also benefit CSH in the form of property management fee revenue (5 per cent of revenue).”
“The REIT is on track to complete $250-million of non-core dispositions this year, inclusive of the Waterloo asset it is selling as part of the Sifton deal closing. Management noted that the buyer pool is robust and pricing on older homes is ~100– 150bps above Class A cap rates.”
Mr. Kalmar emphasized his view that “rent growth as the next leg up in this story.
“1Q26 REVPOS was 5.0 per cent and we believe there is meaningful upside to this number as market rent growth begins to accelerate,” he said. “The growth in rents should translate to meaningful NOI margin expansion, and we view mid-40-per-cent margins as being very achievable in the near term.”
After raising his forecast for both 2026 and 2027, Mr. Kalmar increased his target for Chartwell units to $27 from $26, keeping a “buy” rating. The average is $25.33.
Elsewhere, other adjustments include:
* TD Cowen’s Jonathan Kelcher to $27 from $26 with a “buy” rating.
“CSH continues to deliver strong operating results on the back of healthy retirement home fundamentals. While we expect organic growth on its $9-billion-plus asset base to be the key earnings driver, CSH is also executing well on capital allocation, with the Fengate JV expanding scale in core markets while adding long-term development optionality. CSH remains undervalued vs U.S. peers,” said Mr. Kelcher.
* RBC’s Pammi Bir to $27 from $26 with an “outperform” rating.
“Frankly, a bit of an underwhelming response to a decent Q1 beat. Advances in organic growth were impressive, with momentum likely to carry through 2026 on the back of its enhanced operating strategies. CSH is also making new friends along the way, with several benefits afforded by the new Fengate JV. While some have questioned ATM use, we view it as an efficient, cost-effective tool to execute accretive investments while prudently managing leverage. In short, with a compelling growth profile, we believe good upside in valuation remains,” said Mr. Bir.
* National Bank’s Giuliano Thornhill to $26.50 from $25.25 with an “outperform” rating.
“CSH delivered another strong quarter, while remaining active on the portfolio optimization front,” said Mr. Thornhill. “As of January 1, CSH reclassified its portfolio across SP, Growth, and Repositioning. Operations were strong, though the upside related to its Repositioning segment, a portion of which was recently sold. Alongside these results, the $1.3-billion Seasons portfolio deal and strategic partnership with Fengate puts management’s 2025 investor day strategy into action. We increased our FFO/u by 2–3 per cent, reflecting compressing deal spreads.”
In other analyst actions:
* After its fourth-quarter fiscal 2026 results displayed “strength across the board,” National Bank’s Vishal Shreedhar hiked his target for Aritzia Inc. (ATZ-T) to $171 from $143 with an “outperform” rating. The average is $172.63.
“We believe that ATZ’s premium valuation is justified given its superior long-term operating performance, and opportunity for accelerated growth (sales and margins),” said Mr. Shreedhar.
* RBC’s Greg Pardy raised his Baytex Energy Corp. (BTE-T) target to $7, which is a penny above the average, from $6.50 with a “sector perform” rating.
“Baytex’s new skipper Chad Lundberg has wasted no time in advancing crisp growth and shareholder return objectives alongside the company’s first- quarter results. Our constructive stance towards Baytex reflects its solid leadership team, strong balance sheet, favorable shareholder returns and growth prospects in the Pembina Duvernay,” said Mr. Pardy.
* RBC’s Bart Dziarski reduced his Brookfield Asset Management Ltd. (BAM-N, BAM-T) target to US$65 from US$74 with an “outperform” rating. The average is US$59.49.
“We believe BAM is well positioned heading into its fundraising cycle with private equity, infrastructure flagships and 60 strategies in total fundraising driving our estimated $150-billion of fundraising ($110-billion excluding Just Group mandate) in 2026. We have reduced our target from $74 to $65 as we lowered our target multiple from 28.5 times to 24 times given calibration to BAM’s closest peer BX. On capital allocation, BAM remains under-levered vs. U.S. Alts peers, has been actively repurchasing stock ($575-million year-to-date) and yields 4 per cent,” said Mr. Dziarski.
* RBC’s Jimmy Shan lowered his target for units of Canadian Apartment Properties Real Estate Investment Trust (CAR.UN-T) to $45 from $48 with an “outperform” rating. Other changes include: TD’s Jonathan Kelcher to $45 from $46 with a “buy” rating, Desjardins Securities’ Kyle Stanley to $42.50 from $44 with a “buy” rating and National Bank’s Matt Kornack to $42.50 from $43.50 with an “outperform” rating. The average is $45.75.
“While we expect turnover rent growth to remain negative for balance of year, we continue to expect flat to low single digit NOI [net operating income] growth in 2026, driven by renewal rent growth and operating cost savings,” said Mr. Shan. “This results in flat FFO growth in 2026. With new CEO Brad Cutsey starting July 2, we expect fairly muted capital allocation activity in the near term and await updates on future strategic roadmap. CAP lacks catalyst in the near term but stock should have valuation support at 30-per-cent discount to NAV.”
* RBC’s Greg Pardy increased his Cardinal Energy Ltd. (CJ-T) target to $14 from $13, which is the average on the Street, with an “outperform” rating.
“Cardinal’s operating momentum in the first-quarter was on display as the company’s inaugural Reford 1 SAGD project punched above its weight at 6,700+ bbl/d,” said Mr. Pardy. “The company announced plans to raise its capital program by $45 million (excluding ARO) this year with increased investment aimed at its conventional portfolio which has been harvested in recent years to fund Reford 1.”
* Scotia’s Jonathan Goldman reduced his Cascades Inc. (CAS-T) target to $13 from $14.50 with a “sector outperform” rating. The average is $13.75.
“1Q results were consistent with the pre-release on April 10. 2Q guide calling for adjusted EBITDA of $111 million at the midpoint was more than 20 per cent below the Street with the company noting higher logistics, chemical, and raw material costs,” said Mr. Goldman. “Shares are effectively flat since reporting as we believe additional cost pressures were already priced-in and not surprising given peers noted similar headwinds and the challenging macro is hardly a secret. The company expects to return to run-rate annualized EBITDA of $600-million by the 2H ($300 million in 2H compared with $230 in 1H) supported by the net US$50/ton price increase published by RISI year-to-date, assuming no cost relief, and traction on profitability initiatives (achieved $30 million of $100 million target by end of 2026).”
* RBC’s Keith Mackey moved his CES Energy Solutions Corp. (CEU-T) target to $23 from $22 with an “outperform” rating, while Scotia’s Jonathan Goldman raised his target to $21 from $20 with a “sector outperform” rating. The average is $20.75.
“CEU’s 1Q26 results were largely in-line with expectations. Overall revenue grew 8 per cent year-over-year in a soft North American land drilling market, which reflects increased service intensity and steady production chemicals growth. As North American market conditions improve, we think this growth could potentially accelerate. We increase our 2027 EBITDAC estimates by 5 per cent,” said Mr. Mackey.
* National Bank’s Matt Kornack moved his target for units of Dream Office REIT (D.UN-T) to $19.50, matching the average, from $19, maintaining a “sector perform” rating, while Desjardins Securities’ Lorne Kalmar cut his target to $18.50 from $19 with a “hold” rating
“Q1 earnings were ahead of expectations including the impact of straight-line rent related to fixturing periods on committed leases. The Toronto portfolio has seen a meaningful improvement in leasing traction with an expectation for in-place occupancy figures to improve to 84-86 per cent from 81 per cent currently (79 per cent in Q4/25). This will contribute considerably to organic growth, although the cash impact is weighted to H2/26 with the real benefit being seen in 2027. Nonetheless, progress is tangible and management’s positive tone shift is palpable, although the cost of tenant acquisition remains high. At the REIT’s June AGM a 3-year outlook will be provided,” said Mr. Kornack.
* National Bank’s Patrick Kenny increased his Emera Inc. (EMA-T) target to $69 from $68 with a “sector perform” rating. The average is $75.18.
“Emera posted Q1/26 adj. EPS of $1.37 compared to our $1.15 estimate (Street $1.10) on stronger than expected performance at EES [Emera Energy Services] reflecting higher natural gas prices and increased volatility that created profitable opportunities, as well as favorable weather in Florida at PGS [Peoples Gas],” said Mr. Kenny. “Overall, the company now expects to deliver 2026 adj. EPS growth above its earnings guidance range of 5-7 per cent. Meanwhile, the company reaffirmed its $20-billion 2026–2030 capital plan supporting an unchanged 7–8-per-cent average rate base CAGR and 5–7-per-cent adj. EPS growth guidance through 2030, alongside its 1–2-per-cent annual dividend growth target.”
* RBC’s Keith Mackey raised his Ensign Energy Services Inc. (ESI-T) target to $4.25 from $4 with a “sector perform” rating. The average is $3.94.
“1Q26 adj. EBITDA was below our estimate. Ensign remains focused on debt repayment while maintaining readiness to participate in a potential upcycle in global drilling demand. Optimizing these two priorities remains a relatively tall order, in our view. We increase our 2026/27 EBITDA estimates by 2/4 per cent,” said Mr. Mackey.
* TD Cowen’s Jonathan Kelcher hiked his Extendicare Inc. (EXE-T) target to $39 from $32 with a “buy” rating. The average is $32.30.
“We view Friday’s 10-plus-per-cent share price gain as justified, reflecting another strong earnings beat. HHC remains the primary growth driver for EXE, and we see continued runway for growthbeyond our forecast period on the back of a highly favourable demand outlook. Our estimates and TP increase meaningfully,” said Mr. Kelcher.
* RBC’s Pammi Bir hiked his Granite Real Estate Investment Trust (GRT.UN-T) target to $108 from $100, exceeding the $99.60 average, with an “outperform” rating.
“All things considered, a strong start. In the face of the ongoing Mideast conflict & U.S. trade tensions, GRT’s operating traction & reaffirmed guidance are encouraging. Headwinds of the past are turning into tailwinds, as demand for large bay space ramps up. Downside economic risks could still put a speed bump in the way of improving fundamentals. Yet, supported by its solid balance sheet, portfolio quality advances, and discounted valuation, we like the entry here,” said Mr. Bir.
* RBC’s Bart Dziarski increased his IGM Financial Inc. (IGM-T) target to $77 from $67 with a “sector perform” rating. The average is $73.
“Q1/26 results were strong with adjusted EPS above our estimates and consensus driven by IG WM and Mackenzie. Increasing our price target to $77 (was $67) driven by rolling forward our valuation, higher EPS estimates and net positive adjustments to our NAV-based valuation framework and maintaining Sector Perform rating given limited upside. IGM’s internal intrinsic value of $85 also suggests limited upside from current levels (10 per cent or 13 per cent including dividend),” said Mr. Dziarski.
* Raising his growth estimates for its business in China, National Bank’s Nathan Po increased his target for Jamieson Wellness Inc. (JWEL-T) to $44 from $43.50 with an “outperform” rating. The average is $45.
“We reiterate our Outperform rating as JWEL operates in the resilient VMS [vitamins, minerals and supplements] category and continues to deliver on ambitious growth plans, while navigating the current tariff regime and consumer uncertainty,” said Mr. Po.
* Desjardins Securities’ Kyle Stanley bumped his Killam Apartment Real Estate Investment Trust (KMP.UN-T) target to $20.50 from $19.50 with a “buy” rating. The average is $20.75.
“We raised our … following in-line 1Q26 results, where we believe KMP has positioned itself as the leader among peers,” said Mr. Stanley. “Solid demand fundamentals in Atlantic Canada—which have thus far weathered the new supply wave—and upped organic growth guidance offset the temporary drag at Westmount. Notwithstanding the solid unit price move since reporting (3.2 per cent vs the SPRTRE at 0.3 per cent), at 13.6 times 2027 FFO, a more than 2 times discount to long-term average, we see this as an attractive opportunity to step in.”
* National Bank’s Ahmed Abdullah moved his Lassonde Industries Inc. (LAS.A-T) target to $260 from $258, keeping a “sector perform” rating. The average is $280.
“LAS still expects to hit $3-billion sales (ex-FX) [in 2026] via a balanced mix of pricing and volume, while qualifying its outlook around macro, geopolitical and trade uncertainties. The view on input costs is mixed. We tempered our sales forecast (lowered by 2 per cent, still $3-billion ex-FX), and kept Adj. EBITDA growth 4 per cebt, reflecting slight margin improvement in 2026 vs. 2025,” said Mr. Abdullah.
* Stifel’s Martin Landry reduced his target for Leon’s Furniture Ltd. (LNF-T) to $27 from $30 with a “hold” rating. Other changes include: RBC’s Ryland Conrad to $33 from $35 with an “outperform” rating and National Bank’s Ahmed Abdullah to $35 from $36 with an “outperform” rating. The average is $32.80.
“Leon’s reported Q1/26 results below expectations,” said Mr. Landry. “Same-store-sales decreased by 4.2 per cent year-over-year , the worst decline of the last ten quarters. Granted, Q1/26 lapped a tough comparable period, facing same-store 2-year sales stack of 12 per cent, a much higher comp versus the average 2-year stack of 2.6 per cent for the rest of the year. The decrease was telegraphed by management in Q4/25 and should come to no surprise for investors. Strength in mattresses was welcomed. Leon’s employed a similar strategy to what they did with the furniture category, which has brought some success. A competitor filed for creditor protection in recent weeks which should benefit LNF. Leon’s still sees a stretched consumer and challenging macro environment, but anticipates a gradual improvement throughout the remainder of the year.”
* National Bank’s Matt Kornack increased his Northview Residential REIT (NRR.UN-T) to $19 from $18 with a “sector perform” rating. The average is $16.50.
“While NOI came in slightly below our expectations in the quarter, this was driven almost entirely by harsher winter weather conditions, with revenues tracking ahead of expectations and portfolio KPIs holding in well, particularly on the rent front. Here SPAMR growth held at 4.2 per cent (vs. 4.3 per cent in Q4/25) bucking the trend of other apartment landlords where organic rent growth has slowed. Northern Canada actually saw growth accelerate with the Western and Atlantic regions still putting up 4.5-per-cent and 6.5-per-cent AMR growth, respectively. Management also noted that leasing conditions have improved into the spring. While structural impediments (lack of liquidity in particular) make it difficult to own this name, the portfolio is performing admirably,” said Mr. Kornack.
* RBC’s Greg Pardy hiked his Obsidian Energy Ltd. (OBE-T) target to $18, topping the $16.99 average, from $14 with an “outperform” rating.
“Obsidian executed an active first-quarter development drilling program at both Peace River (7 wells across the Clearwater and Bluesky formations) and Willesden Green (5 wells in the Belly River) alongside continued progress on its waterflood initiatives in the Dawson/Nampa areas,” he said.
* National Bank’s Don DeMarco raised his OceanaGold Corp. (OGC-T) target to $76 from $72 with an “outperform” rating. The average is $66.58.
“[First-quarter results] saw Financials mixed, production and costs higher vs. our estimates; FCF up quarter-over-quarter, buoyed by higher realized gold price lifting cash balance and maintaining sizable returns to shareholders as part of their expanded $350-million share buyback program for 2026. Guidance reiterated with standout production expected in Q2 & Q4/26,” said Mr. DeMarco.
* RBC’s Maurice Choy increased his Pembina Pipeline Corp. (PPL-T) target to $68 from $64 with an “outperform” rating. The average is $63.16.
“With investor sentiment on the company’s stock somewhat stabilized on a relative basis since its April 2026 Business Update, what we like about the Q1/26 results is the sense that Pembina’s ability to deliver solid results repeatedly is better resonating with the market. Indeed, the strong results and 2026 guidance upgrade were driven by Marketing, but Pembina’s commercial and project execution accomplishments should not be overlooked. Through upcoming project sanctionings (such as Greenlight) and consistent delivery of solid financial performance, perceived credibility of Pembina’s 5-7-per-cent fee-based EBITDA/share CAGR target (specifically the upper half of the range) should improve,” said Mr. Choy.
* Mr. DeMarco also hiked his SSR Mining Inc. (SSRM-T) target to $67 from $59 with an “outperform” rating. The average is $58.62.
“Q1/26 [was] highlighted by a financial beat on both metrics vs. NBCM and the street underpinned by better-than-expected production/sales partially offset by higher costs; and oversized share buybacks post quarter,” he said.
* In response to in-line results and a reaffirmation of its 2026 guidance, National Bank’s Patrick Kenny bumped his South Bow Corp. (SOBO-N, SOBO-T) target to US$31 from US$30 with a “sector perform” rating, while RBC’s Maurice Choy raised his target to $49 (Canadian) from $48 with an “outperform” rating. The average is US$33.67.
“We maintain our Sector Perform rating and would continue to await a better entry point into the name closer to our target price - i.e., effectively acquiring the Prairie Connector option value for free,” he said.
* Believing the retirement of CFO Doug French “marks further pending change of the guard” for Telus Corp. (T-T), National Bank’s Adam Shine lowered his target for its shares by $1 to $20 with an “outperform” rating, while Desjardins Securities’ Jerome Dubreuil to $21 from $21.50 with a “buy” rating. The average is $19.37.
“Starting July 1, Gopi Chande, currently CFO of Telus Digital and Telus Health, will replace Mr. French who will serve as an advisor until July 31 and continue as Chair of Terrion,” said Mr. Shine. “Victor Dodig joined the Telus leadership team on May 1 and becomes CEO on July 1. We await a dividend cut of at least 30 per cent, the elimination of the DRIP discount, and changes in capital allocation policies heading into 2Q reporting. We believe the stock has elevated from a multi-year low near $16 over the past month primarily in anticipation of what’s to come this summer. Whether any changes arise to go-to-market strategies remains to be seen, but a resolution to pending monetization files related to Telus Health and Telus Agriculture & Consumer Goods would be welcome along with more clarity on what exactly the strategy is for real estate development and monetization.”
* RBC’s Bart Dziarski moved his Trisura Group Ltd. (TSU-T) target to $60 from $59 with an “outperform” rating. The average is $56.20.
“Q1/26 results were ahead of us and slightly ahead of consensus but the more important highlights from the quarter were i) obtaining an additional 5 state licenses in U.S. (including Florida) and ii) raising $200-million of debt to further optimize capital structure toward TSU’s target leverage ratio,” said Mr. Dziarski. “TSU trades at a slight discount to specialty peers and we believe a premium is warranted given superior growth profile.