Inside the Market’s roundup of some of today’s key analyst actions
Citi analyst Paul Lejuez sees Gildan Activewear Inc.’s (GIL-N, GIL-T) US$4.4-billion deal North Carolina-based underwear producer Hanesbrands Inc. (HBI-N) as “a ‘basic’ acquisition with big synergies at an attractive price.”
“The purchase price is lower (and synergies are higher) than what we laid out in our initial thoughts note, implying terms are favorable for GIL, which justifies/explains the 12-per-cent stock move,” he said. “Big picture, we believe this takes GIL from a consistent return of capital story to a more exciting EPS-growth story with potential upside from more synergies than what was shared.”
TSX-listed shares of Montreal-based T-shirt maker closed up 11.8 per cent on Wednesday following the premarket confirmation of the agreement. Gildan estimates it will be able to achieve US$200-million in cumulative synergies over the next 3-years and projects to be more than 20-per-cent accretive to earnings per share.
“In our initial analysis we assumed GIL would be able to achieve $150-million in synergies,” said Mr. Lejuez. “Using a 10-per-cent discount rate to calculate the PV of those synergies we estimated that GIL paying $8 per share for HBI (implies equity value of $2.85-billion) would result in a neutral stock reaction (for GIL). Given the acquisition price is $6/shr (implies equity value of $2.1-billion), the $750-million difference in equity value would imply GIL should have traded up 10 per cent (which is the $750-million as a percentage of GIL’s prior market cap). It is no surprise it traded up more because synergies were communicated to be higher than $150-million (even if achieved 3 yrs out). Importantly, HBI shareholders will participate in GIL upside as they are set to receive 0.102 GIL shares per HBI share. Using the current GIL share price of $55 implies HBI shareholders are set to receive total value of $6.41/shr. This explains why HBI is trading above the initial $6 announced price. It does not mean GIL will have to give any further consideration.”
Mr. Lejuez thinks the combination of the two large manufacturers of basics and innerwear “makes sense on paper” and thinks Gildan can manage Hanesbrands business “more efficiently, given its expertise in low-cost manufacturing.”
“We are not legal experts, but we don’t see significant sales overlap between GIL and HBI (as much as many investors view these companies as being in the same investment neighborhood),” he added. “HBI runs an underwear/hosiery business with an estimated low teens US mkt share. GIL’s underwear & hosiery business is just 10 per cent of GIL’s sales, so would not add much to the combined entity’s mkt share in this category.”
He kept a “buy” rating and US$60 target for Gildan shares. The average target on the Street is $63.51, according to LSEG data.
Elsewhere, analysts making target adjustments include:
* Stifel’s Martin Landry to US$75 from US$65 with a “buy” rating.
“Our view has evolved, and we see this transaction positively for the following reasons: (1) It is immediately accretive to our 2026 EPS estimates by 25 per cent, higher than previously expected (2) Gildan’s financial leverage post the acquisition, at 2.6 times, is much lower than initially expected due to the large equity portion of the financing, (3) synergies of $200-million are double our previous assumptions and (4) this transaction could accelerate Gildan’s earnings growth into the low-20 per cent for the coming three years. Based on our pro forma estimates, Gildan’s valuation now stands at 11 times forward earnings, three turns below its historical average despite much faster earnings growth than historically‚” said Mr. Landry.
* RBC’s Ryland Conrad to US$68 from US$61 with an “outperform” rating.
“We view the acquisition of HanesBrands as a complementary and logical fit. Our investment thesis for Gildan is largely centered around the company’s position to capture share over the medium-term supported by its vertically integrated low-cost manufacturing model alongside multiple structural drivers and in our view, the acquisition of Hanes bolsters the company’s ability to execute against this playbook,” said Mr. Conrad.
* Scotia’s John Zamparo to US$62 from US$59 with a “sector outperform” rating.
“We consider the higher synergies number combined with a lack of anti-trust concerns as primary drivers for GIL’s double-digit move [Wednesday]. On paper, this deal is highly compelling: low 20-per-cent EPS growth three years running and significant FCF generation with an ability to get to 2 turns of leverage by the end of 2027, with a buyback turned back on, while the stock trades at just 12 times our 2026 pro forma EPS. However, deals of this magnitude for underperforming assets carry meaningful risks, which may not be fully appreciated by investors, in our view. Moreover, there’s a case to be made (as was highlighted in the 2023 proxy contest) that GIL’s existing growth plan plus an elevated buyback program could’ve provided investors with mid-teens annual returns. We still land on a positive outcome here, primarily because of the synergies’ magnitude (which we discount by 20 per cent for conservatism) and the sizable FCF,” said Mr. Zamparo.
* National Bank’s Vishal Shreedhar to $86 from $80 with an “outperform” rating.
“We are constructive on the combination given improved diversification (complementary products/channels) and strong synergies. Notwithstanding, GIL will need to demonstrate sustained traction in retail (HBI sales & EBITDA have declined over many years; GIL also has not gained material traction in retail),” he said.
* Canaccord Genuity’s Luke Hannan to US$67 from US$60 with a “buy” rating.
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While he thinks Linamar Corp. (LNR-T) displayed its “operational certainty in an uncertain market” with its second-quarter results, Scotia Capital analyst Jonathan Goldman remains “on the sidelines for the auto sector as a whole given the full impact of tariffs remains to be seen ... including USMCA renewal/negotiations in 2026.”
Auto parts makers have managed to fend off the worst of tariffs – for now
Shares of the Guelph, Ont.-based parts manufacturer rose 4.5 per cent on Wednesday after it reported quarterly sales and adjusted earnings before interest and taxes of $2.643-billion and $254-million, respectively, versus the consensus estimates of $2.705-billion and $253-million. Better-than-expected results from its Mobility segment offset a weaker Industrial performance.
“Mobility margins were the highlight of the quarter coming in at 7.7 per cent (Scotia/Street 7 per cent/6.8 per cent), back within the pre-COVID historical range of 7 per cent to 10 per cent whereas NA peers are still 150bp below 2019 levels on average,” said Mr. Goldman. “Margin expansion was more impressive given flat sales and supported by cost reductions, operational efficiencies, commercial recoveries, and mix. Mix benefit partially due to lower EV volumes, i.e., not spreading volumes between ICE/EV is more efficient. Industrial markets remain soft (sales down 22 per cent year-over-year) but the company continues to gain share.
“3Q and 2025 outlook were in line with consensus. 2026 EPS outlook was lowered to ‘growth’ from ‘double-digit growth’ due to lower sales growth in Mobility. However, we believe that was already partially reflected in consensus which was forecasting 8-per-cent EPS growth in 2026.”
While noting Linamar shares are up almost 30 per cent year-to-date and 65 per cent since April lows brought on by tariff announcements, Mr. Goldman emphasized they are still “inexpensive” compared to peer Magna International Inc. (MG-T) as well as its historical discount.
“Solid FCF generation in the quarter and low leverage (0.8x) provides ample dry powder for buybacks and/or organic/strategic investments,” he added.
Reiterating his “sector perform” rating, Mr. Goldman raised his target to $80 from $71. The average is $75.
Elsewhere, other changes include:
* TD Cowen’s Brian Morrison to $85 from $78 with a “buy” rating.
“Linamar continued the trend within our auto suppliers, exceeding Q2/25 consensus, while maintaining its 2025 guidance. While Linamar trades at a punitive valuation, we see catalysts for this to appreciate inclusive of an improving Mobility outlook, stabilizing Industrial outlook (being assigned a Mobility margin), and consistently strong FCF providing optionality to enhance its growth/valuation,” said Mr. Morrison.
* Raymond James’ Michael Glen to $80 from $70 with a “market perform” rating.
“Linamar reported 2Q results that were ahead of our forecast on a consolidated basis, with more variance at the segmented level as Mobility/Automotive came in better, with Industrial (Skyjack/Agriculture) lagging. While we had seen a number of indicators up to now regarding a challenging backdrop in the Industrial segment, the 2Q result is really the first period where we see Mobility/Automotive take over as the driver of profitability,” said Mr. Glen.
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While acknowledging CAE Inc.’s (CAE-T) reduction to the guidance for its Civil segment after just one quarter “suggests lower visibility,” Desjardins Securities analyst Benoit Poirier thinks the 5.8-per-cent drop in its shares price on Wednesday was “an overreaction (shares have returned to near preCEO announcement levels), as expectations for immediate strategic actions were likely premature.”
“Short-term pilot hiring headwinds appear temporary,” he added. “Long-term structural Civil fundamentals remain strong, supported by record bizjet activity and a looming pilot shortage, with 25–33 per cent of U.S. airline pilots set to retire over the next decade."
He added: “Airline pilot hiring in the U.S. has come to a standstill. CAE reduced its FY26 Civil outlook as airlines have become more cautious (FAPA’s major US airline pilot hiring data for June was down 70 per cent year-over-year). This caused CAE’s Civil training centre utilization to fall to 71 per cent and it booked only five FFS orders, the lowest quarterly reported number since 1Q FY22. That said, management stated that airlines will resume the pace of hiring as aircraft deliveries increase. CAE believes June was a trough and is confident that hiring will increase in 2H.”
While the Montreal-based pilot training company’s first-quarter 2026 results fell below his expectations, including adjusted earnings per share of 21 cents versus his 22-cent estimate, Mr. Poirier thinks CAE’s new leadership team provide optimism for investors. Matthew Bromberg, formerly the head of global operations at Northrop Grumman Corp., took over as president and chief executive officer on Wednesday.
“Historically, capital allocation has been a concern, but the new leadership team is now making it a core priority, which will be supported by a revised compensation structure,“ he said. ”Looking ahead, CAE aims to drive efficiencies and earnings growth by leveraging recent cost-optimization investments, particularly in the Civil segment. In Defence, it plans to shift the backlog toward more accretive long-term contracts and apply advanced technologies across its portfolio, including commercial applications, as successfully done by many US A&D primes. Today’s comments reinforce our bullish stance, drawing parallels to past turnarounds like BBD and ATRL. With leadership addressing long-standing inefficiencies, we anticipate a potential ‘kitchen sink’ quarter featuring strategic resets (civil network rightsizing, cost cuts, capex reductions and possible divestitures) that unlock upside.”
Maintaining his “buy” rating for CAE shares, the analyst raised his target by $1 to $46. The average is $43.67.
Elsewhere, TD Cowen’s Tim James upgraded CAE to “buy” from “hold” with a $44 target, down from $40.
“We view Q1 Defence margin progress, a backdrop with numerous constructive industry trends, management focus on FCF and ROC, and a negative market reaction to results as providing a good entry point for investors. Signs of improvement in U.S. air travel, positive Boeing/Airbus production momentum, stable business aviation growth and robust defence environment (in particular in Canada) are positive,” said Mr. James.
Scotia’s Konark Gupta raised his target to $46.50 from $42 with a “sector outperform” rating.
“We are not surprised by a negative reaction [Wednesday] to the Civil guidance cut, but we think the selloff is overdone, considering positive management commentary and the fact our EPS estimates are down by only 3-4 per cent (not 10 per cent),” said Mr. Gupta. “FQ1 continued recent themes – improved Defense execution (thus, another beat) and weak Civil pilot training demand (thus, another miss) – so the guidance cut is justified but we gained more confidence in Defense. More importantly, CAE’s renewed leadership team, including Calin Rovinescu (Executive Chairman, and former Air Canada President & CEO) and Matthew Bromberg (President & CEO), provided high-level views on enhancing FCF conversion and ROCE and ultimately creating incremental shareholder value over the next 3-5 years (including potential dividend reinstatement). We believe patient investors who can live with the remaining transitory headwinds in Civil (probably for up to three more months) could be highly rewarded over the medium term as the new leadership executes."
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Following a second-quarter beat, Raymond James analyst Luke Davis upgraded Birchcliff Energy Ltd. (BIR-T) to “outperform” from “market perform” previously, believing “the company’s simple, drama-free model is likely to resonate through the second half with management planning to spend 3Q positioning to take advantage of stronger winter pricing.”
“Birchcliff’s 2Q25 results came in ahead of our expectations, driven by a lower capital spend, deep in-the-money basis swaps, and ongoing operational efficiencies,” he added. “While the company’s leverage screens above its gas-weighted peers, the second half free cash profile should drive accelerated debt repayment bringing the company into alignment, while increasing optionality into 2026.”
After the bell on Wednesday, the Calgary-based company reported production volumes of 79,480 barrels of oil equivalent per day, exceeding both Mr. Davis’s 78,500-barrel estimate and the consensus of 78,500 barrels. Cash flow per share of 35 cents was 2 cents above expectations.
The analyst now sees Birchcliff poised for a free cash flow inflection in the second half of 2025.
“The company’s capital guidance of $280-million was approximately two-thirds spent over 1H25 which sets the stage for strong free cash generation over the balance of the year,” said Mr. Davis. “We now model free cash of $110-million in 2H25 (compared to $32-million in 1H25) which, after a modest $16-million dividend payment, should contribute to an 18-per-cent decline in net debt by year-end and improve optionality into 2026.
“Building operational momentum. Birchcliff completed planned maintenance at its Pouce Coupe plant and AltaGas’ Gordondale plant (BIR is the operator). Management also plans to complete compressor-related maintenance projects into 3Q25 to reduce downtime during 4Q25 in anticipation of improved gas pricing. Beyond this, management highlighted IP rates on new pads that have supported increasing condensate production. At PC this includes the 07-10 pad’s (3-wells) IP30 of 1,083 boe/d per well, the 05-19 pad’s (4-wells) IP30 of 1,071 boe/d per well, the 03-06 pad’s (4-wells) IP30 of 1,143 boe/d per well, and the Gordondale 02-27 pad’s (4-well) IP30 of 1,041 boe/d per well. Of these, average CGRs per well came in at 18, 55, 166, and 53 bbl/MMcf.”
With an increase to his forecast through 2027, Mr. Davis raised his target for its shares to $8 from $7.50. The average is $8.38.
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Scotia analyst Mario Saric thinks an improvement in sentiment toward apartment real estate fundamentals will “take some time,” leading him to say he’s “tactically moving to the sidelines for now” and lowered his recommendation for CAP REIT (CAR.UN-T) to “sector perform” from “sector outperform” previously.
“Our rating falls to Sector Perform (from Sector Outperform) on 1-2 per cent lower estimates,” he said. “That said, our 16-per-cent NTM [next 12-month] total return is only modestly below Peer and Sector average (21 per cent and 18 per cent), but our TP = 13-per-cent multiple expansion.
“Rationale for downgrade= (1) We still think incentive to own CAR is inversely correlated to rent incentives...and they fell less than hoped in Q2 and may linger a bit longer in 2H/25 on a tough Toronto market, (2) Our 2026E AFFOPU growth of 4.2 per cent (negative 1.1 per cent) ranks #21 in our universe (lowest Apartment REIT), leading to a PEG ratio of 5.3 times (gap is +1 to peers quarter-over-quarter), (3)Broader market asking rents have not moved higher during the busy Summer as hoped. Healthy new supply + slower part of year = risk asking rents stay flat/fall = obstacle to fund flows. We acknowledge the downgrade takes place 8 per cent below a recent peak hit on July 14 and at Q1 results unit price (plus we still see good value). We think the C-Suite is pushing a lot of right capital allocation buttons (an SIB on possible ERES liquidation = risk to our downgrade).”
With his reduced forecast, Mr. Saric cut his target by $1 to $47.50, below the $50.20 average on the Street
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While the third-quarter results for Metro Inc. (MRU-T) came in “a tad short” versus his expectations, National Bank Financial analyst Vishal Shreedhar is expecting an “acceleration” in food same-store sales growth and improving expense leverage moving forward.
“Customer behaviour remains consistent (stable discount/conventional gap, higher private label, value focus, etc.); MRU is seeing Canadian products continue to gain share, albeit the pace has decelerated slightly,” he said. “A slight uptick in competitive intensity was noted (promotional activity, new stores/conversions, etc.), albeit pricing remains rational.
“Our opinion is that MRU’s market share was negatively impacted by the lapping of a boycott at Loblaw last year, offset by Canadian retailers gaining market share from non-Canadian retailers. We expect food sssg to accelerate (NBF models 2.5 per cent in Q4/F25 and 2.2 per cent in F2026). MRU has now cycled the peak duplicate/transition costs related to new DCs [distribution centres], and expects modest SG&A leverage going forward (despite higher online partnership fees).”
Shares of the Montreal-based grocer dropped 7 per cent on Wednesday after its quarterly results came in “slightly light” due to weaker-than-anticipated food same-store sales growth of 1.9 per cent, down from 2.4 per cent during the same period a year ago and missing Mr. Shreedhar’s projection of 3.5 per cent. Earnings per share rose 17 cents year-over-year to $1.52, falling 2 cents below the analyst’s projection and a penny under the consensus on the Street.
“Positively, MRU held market share and indicated that the impact of tariffs is manageable for now (approximately 3,000 SKUs impacted so far),” Mr. Shreedhar noted.
In response to the results, he made modest reductions to his earnings per share estimates with his full-year 2025 expectation sliding to $4.78 from $4.83 and his 2026 estimate down to $5.28 from $5.35.
That led him to trim his target for Metro shares to $110 from $111, keeping a “sector perform” recommendation. The average target is $106.80.
“We believe MRU is a solid company which has delivered solid long-term returns over various economic cycles,“ he concluded. ”However, our coverage presents investments which offer a better comparative investment proposition.”
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Barclays analyst Brian Morton made a series of target price adjustments to Canadian bank stocks ahead of the start of third-quarter earnings in the sector later this month.
“We expect Canadian Bank 3Q25 earnings to improve sequentially on a decline in PCLs on performing loans and higher NII though seasonally softer capital markets. While we also expect banks to reiterate 2025 outlooks, we note concerns on tariffs and mortgage renewals persist,” he said.
Mr. Morton’s changes are:
- Bank of Montreal (BMO-T, “equalweight”) to $150 from $144. The average on the Street is $158.21.
- Bank of Nova Scotia (BNS-T, “equalweight”) to $81 from $78. Average: $80.29.
- Canadian Imperial Bank of Commerce (CM-T, “underweight”) to $96 from $94. Average: $103.28.
- National Bank of Canada (NA-T, “equalweight”) to $147 from $141. Average: $147.08.
- Royal Bank of Canada (RY-T, “overweight”) to $190 from $182. Average: $192.64.
- Toronto-Dominion Bank (TD-T, “underweight”) to $95 from $91. Average: $99.39.
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In other analyst actions:
* Following a second-quarter miss, TD Cowen’s Aaron MacNeil downgraded North American Construction Group Ltd. (NOA-T) to “hold” from “buy” and cut his target to a Street-low of $21 from $25. The average is $36.07.
“We expect meaningful share price weakness following the Q2/25 miss and reduced guidance. Generally, we are supporters of this name, and our downgrade to HOLD feels a bit like capitulation at the bottom, but 2025 will represent two consecutive years of missed guidance, and it is challenging to see positive catalysts that support multiple expansion in the near term,” he said.
* National Bank’s Don DeMarco hiked his Artemis Gold Inc. (ARTG-X) target to $37 from $35.50 with an “outperform” rating. The average target on the Street is $31.38.
* In a client note titled Thesis is working out; stick with it, National Bank’s Maxim Sytchev hiked his target for AutoCanada Inc. (ACQ-T) to $36 from $28 with an “outperform” rating. Other changes include: ATB Capital Markets’ Chris Murray to $32 from $25 with a “sector perform” rating and Acumen Capital’s Trevor Reynolds to $39 from $30.50 with a “speculative buy” rating. The average is $31.51.
“This is an objectively much better than expected quarter; higher cost-out envelope should be welcome as it also demonstrates the company’s ability to drive efficiencies and also manage expectations,“ said Mr. Sytchev. ”Rapid balance sheet normalization is now a function of better results, floorplan efficiencies, asset sales and generally not as bad macro as feared. While there is some cautious language around same-store sales on a prospective basis, 2 U.S. Toyota dealerships in the divestiture hopper are much more important in our view. Net net, we went positive on the name in Nov. 2024 at $15.12 (a contrarian call at that time) and we continue to see upside given newly found execution prowess; we also strongly believe that BoC will need to cut rates as the year progresses given the lacklustre employment picture.”
* National Bank’s Zachary Evershed increased his Boyd Group Services Inc. (BYD-T) target to $250 from $245 with an “outperform” rating. Other changes include: ATB Capital Markets’ Chris Murray to $270 from $290 with an “outperform” rating, Stifel’s Daryl Young to $260 from $255 with a “buy” rating, RBC’s Sabahat Khan to $272 from $270 with an “outperform” recommendation and Desjardins Securities’ Gary Ho to $270 from $255 with a “buy” rating. The average is $266.55.
“We remain bullish on BYD’s roll-up runway and margin improvement opportunities and reiterate our Outperform rating,” he said.
* Mr. Evershed increased his KP Tissue Inc. (KPT-T) target to $10, matching the average on the Street, from $9.50, while Desjardins Securities’ Frederic Tremblay bumped his target to $10 from $9.50 with a “hold” rating
“We reiterate our Sector Perform rating as, although the impressive margin showing in the quarter paints potential upside to our forecasts, we expect any FCF windfall will be diverted to another capex cycle, the benefits of which shareholders must once again await,” said Mr. Evershed.
* Desjardins Securities’ Benoit Poirier reduced his target for Calian Group Ltd. (CGY-T) to $59 from $62 with a “buy” rating, while Ventum Capital’s Rob Goff trimmed his target to $58 from $60 with a “buy” rating. The average is $59.43.
“We are encouraged by CGY’s strategic shift as it realigns its go-to-market approach to capitalize on defence tailwinds — the key stock driver since Canada’s defence spending announcement,” he said. “The market should view recent changes positively. ITCS remains a shrinking segment and is a likely divestment candidate, which should already be well-discounted by investors. Our reduced estimates reflect uncertainty around timing, not a change in conviction. CGY remains one of the best-positioned Canadian plays on rising defence spending.”
* In response to its quarterly results and sale of a 30-per-cent stake in its Copper World project in Arizona to Mitsubishi Corp., National Bank’s Shane Nagle increased his target for shares of Hudbay Minerals Inc. (HBM-T) by $1 to $17.50 with an “outperform” rating, while Stifel’s Ralph Profiti raised his target to $20 from $17 with a “buy” rating. The average is $16.17.
“We incorporated Q2 financial results and account for the 30-per-cent sale of Copper World which has led to an increase in our target,“ Mr. Nagle said. We expect incremental expansion initiatives at Copper Mountain and Constancia to support improvements to the operating outlook.
“We reiterate our Outperform rating based on strong financial position, support from by-product gold production and a strong near-term cash flow generation.”
* National Bank’s Patrick Kenny bumped his target for Hydro One Ltd. (H-T) to $48 from $47, keeping a “sector perform” rating. Other changes include: Raymond James’ Theo Genzebu to $49 from $48 with a “market perform” rating, TD Cowen’s John Mould to $54 from $52 with a “hold” rating and Desjardins Securities’ Brent Stadler to $59 from $58 with a “buy” rating. The average is $50.04.
“It was another strong quarter as organic growth and demand in the fast-growing Ontario market translated into a solid 2Q. We view Ontario’s IEP as additive to our JRAP 2028 expectations, but it also provides clarity to the province’s long-term growth outlook. In the coming weeks, we expect H’s awarded transmission projects to increase to 12 (from nine), which we ballpark could add $3–4-billion capital investments and upside to our JRAP 2028 expectations,” said Mr. Stadler.
* Desjardins Securities’ Lorne Kalmar raised his target for Sienna Senior Living Inc. (SIA-T) to $21 from $20 with a “buy” rating. The average is $20.17.
“We were surprised by the stock’s negative reaction [down 3.4 per cent] to what we viewed as an in-line quarter,” said Mr. Kalmar. “SIA delivered solid results operationally and remains on track to meet its 2025 targets. While 2025 OFFOPS growth is impacted by a higher share count, we expect growth to accelerate in 2026/27 on the back of improving fundamentals, and its acquisition and development programs. We also believe SIA is well-positioned to increase its distribution in the near term (we are modelling 1Q26).”
* RBC’s Pammi Bir raised his SmartCentres REIT (SRU.UN-T) target to $29 from $28 with an “outperform” rating. The average is $27.41.
“On the back of modestly better than forecast Q2 results, our confidence in SRU continues to build. Capitalizing on the strengths of its defensive portfolio and solid retail fundamentals, operating momentum has accelerated with organic NOI growth tracking well above historical levels (1 per cent). We expect the pace to persist in the face of a sluggish economy, supported by the consumer and tenant draw of its Walmart anchored centres. While there’s work to do on the balance sheet, we’re encouraged that dispositions seem set to finally hit the tape,” said Mr. Bir.
* Following a second-quarter miss, Raymond James’ Luke Konschuh cut his Superior Plus Corp. (SPB-T) target to $10 from $10.50 with an “outperform” rating. The average is $9.63.
“We continue to view SPB favorably given its progress on Superior Delivers, wide-ranging CNG growth and diversification opportunities, and solid execution on accelerated buybacks,” said Mr. Konschuh. “The stock is down 18 per cent over the past month (versus the S&P/TSX Capped Energy Index down 2 per cent) and is trading at a 19-per-cent FCF yield on our 2025 estimates, a level we consider attractive.”
* National Bank’s Adam Shine cut his target for VerticalScope Holdings Inc. (FORA-T) to $5.50 from $6.50 with a “sector perform” rating, while , while TD Cowen’s Vince Valentini moved his target to $4 from $4.50 with a “hold” rating. The average is $6.13.
“We suspect that privatization could occur at some point, but we do not know when or at what price, so we cannot justify a Buy rating based solely on that. Whilst we wait, we believe both MAU growth headwinds and macro/industry concerns, especially for smaller scale digital media companies, will restrict upside for the stock,” said Mr. Valentini.
* National Bank’s John Shao raised his Zedcor Inc. (ZDC-X) target to $5.50, topping the $5.18 average, from $5 with an “outperform” rating.
“As the Company adds new locations, we expect such growth momentum to continue, and the greater operating visibility leads us to believe that the actual growth trajectory is at or above our previous projection,” said Mr. Shao.