Inside the Market’s roundup of some of today’s key analyst actions
Seeing the potential for a price war emerging in Canada’s telecommunications sector, TD Cowen analyst Vince Valentini downgraded his ratings for rivals BCE Inc. (BCE-T), Rogers Communications Inc. (RCI.B-T) and Telus Corp. (T-T) to “hold” recommendations from “buy” previously.
“With bond yields rising, and with the ‘risk’ that war-related fears could ease in coming months, we believe investors could start focusing more on core pricing and growth fundamentals for these telcos,” he said in a client report released before the bell on Thursday.
“The news on this front is not good, in our view, with very aggressive pricing being observed late in Q1/26 (sub-$30 for big GB wireless plans). This pricing is not stimulating better subscriber volume growth across the industry, but instead, it is just causing elevated churn and a negative repricing cycle. Website advertised pricing improved on April 1, but we believe enough damage has already been done to justify a more cautious stance with our ARPU [average revenue per user] growth forecasts (being lowered by 100bps today across the next seven quarters) and our wireless segment target multiples.”
Mr. Valentini also warned of the presence of further downside risk to his estimates across the industry following a “challenging” first quarter of fiscal 2026 “if either website or in-store pricing reverts back to what we were seeing in March.”
“There is also incremental service revenue risk (in the ballpark of $50 million per incumbent carrier) if the recent CRTC decision banning activation fees cannot be either overturned or somehow offset (perhaps via less promotional discounting on base monthly rate plans),” he said.
“The most important change in our outlook today is that we are lowering our wireless ARPU growth estimates by 100 basis points versus our previous forecasts for each of Rogers, BCE, and TELUS across each of the next seven quarters (Q2/26 through Q4/27). Using Rogers as an example (BCE/TELUS would be directionally similar), for Q2/26, we previously estimated year-over-year ARPU growth of negative 1.5 per cent, and now we forecast negative 2.5 per cent.”
With his forecast changes, Mr. Valentini made these target price adjustments:
* BCE Inc. to $37 from $41. The average target on the Street is $39.62, according to LSEG data.
Analyst: “For yield-seeking investors, or those who fear that the geopolitical events will keep the overall market in a risk-off mood for the next several months, BCE could arguably be placed ahead of Rogers in [my] pecking order. Certain aspects of the 2028 growth guidance could be at risk if wireless fundamentals do not improve, and BCE remains a bit more expensive than RCI.B (especially if one adjusts EPS and FCF for the value of sports assets). However, BCE is executing well on its AI DC initiative, and it has both Ziply operations and Enterprise operations that are not impacted by the current competitive intensity in Canadian wireless.”
* Rogers Communications to $56 from $65. Average: $58.06.
Analyst: “The sports assets now account for roughly 20 per cent of the total enterprise value at Rogers. The value of these assets has no correlation with Canadian wireless fundamentals, and we continue to expect favourable monetization catalysts by the end of 2026. We also see room for Rogers to further reduce capex and working capital going forward, as an offset at the FCF line to weaker wireless ARPU/EBITDA.”
* Telus to $19 from $21. Average: $20.71.
Analyst: “We believe this stock could look a lot better to investors in 6-12 months, after both non-core asset monetization and clarity on the strategy and capital-allocation priorities for the new CEO. However, we see a lot of uncertainties in the near term, including the risk of a dividend cut. If wireless revenue/EBITDA growth remain elusive, then the high end of EBITDA guidance for 2026 could be difficult to achieve, and thus the probability of a new CEO wanting to reset the dividend payout ratio will likely increase. TELUS has highquality fibre and Healthcare assets that arguably deserve a premium valuation to other telcos, but T shares are already trading at a premium to all peers except QBR.B.”
Mr. Valentini maintained his “hold” rating and $85 target (versus $76.08 average) for shares of Cogeco Communications Inc. (CCA-T), which sits atop his pecking order.
“The company has no exposure to the Canadian wireless price war, and both its FCF and spectrum value have favourable outlooks for the next 2-3 years. Dividend yield is second only to TELUS in the group, at 5.7 per cent. We remain concerned about weak Q2/26 results on April 9, but this headwind is arguably better reflected in expectations after the approximately 10-per-cent decline for the stock in the past week,” he explained.
Following Wednesday’s release of fourth-quarter 2025 financial results that displayed “strong” revenue growth, Stifel analyst Martin Landry thinks Groupe Dynamite Inc. (GRGD-T) possesses “leading operating metrics, including strong comparable sales growth, EBITDA margins, ROIC, and inventory turnover, which we believe justify a premium valuation multiple vs peers.”
“Group Dynamite’s Garage brand is getting traction with customers and gaining significant market share,” he said in a client note. “Garage is currently GRGD’s primary growth engine and the main driver behind the 30.4-per-cent year-over-year increase in comparable sales in Q4FY25 The brand resonates with young women in part due to its on-trend fleece offering, affordable products and sexy positioning.
“GRGD recently opened its first stores in the United Kingdom and these two openings were the most successful in the company’s history. This performance bodes well for continued international growth of the Garage brand, which could expand into other European markets in the coming years. With the impressive FY26 guidance introduced [Wednesday], investors may begin to view the company’s strong growth rates as more sustainable than previously believed.”
Launch of U.K. Garage stores were best in Groupe Dynamite history, CEO says
Shares of the Montreal-based clothing retailer dipped 1.3 per cent on Wednesday despite reported quarterly revenue of $394-million, up 45 per cent year-over-year and topping the $378-million estimate of both Mr. Landry and the Street. He attributed the beat to increased productivity with sales per square foot jumping by nearly 30 per cent year-over-year “as the company upgraded its store portfolio relocating stores to higher-end malls.” Earnings per share of 71 cent was a jump of 115 per cent and also topped projections (66 cents and 67 cents, respectively).
“Groupe Dynamite reported Q4FY25 comparable-store sales growth of 30.4 per cent year-over-year, which boosted revenue growth to reach 45 per cent year-over-year, the fastest growth rate for the company in the last five years,” said the analyst. “Groupe Dynamite is firing on all cylinders with market share gains, momentum in online sales, revenue contribution from new stores, efficient inventory management and effective marketing. Q4FY25 online revenues grew at an impressive pace of 63.3 per cent year-over-year, increasing penetration by 280 basis points to 25.5 per cent, on a successful marketing campaign from social media influencers and brand ambassadors.
“EBITDA margins expand 740 bps year-over-year, the biggest increase of the last three years, driven by both gross margin expansion and SG&A leverage. Gross margin increased due to better control on merchandise costs, reduced markdowns and an improved pricing strategy. SG&A expenses as a percentage of sales decreased by 340 bps to 26.2 per cent on good fixed cost absorption. Management also highlighted that marketing investments in social have been performing well whereas traditional channels have been slowing. This provides further room to optimize marketing spend.”
Believing its rapid inventory turnover helps protects it against inflationary pressures, Mr. Landry emphasized management’s pleasure in the launch two new Garage stores in London at the end of March, while also seeing its operations maintaining its momentum in the first quarter of the current fiscal year.
“Q1FY26 is off to a strong start,” he said. “Eight weeks into Q1FY26, Groupe Dynamite’s comparable sales growth are up 28 per cent year-over-year, a continuation of the company’s strong momentum seen in FY25. In addition, the gross margin expansion of 200bps year-over-year implied in the guidance should be frontend loaded given the easier comparable period due to high tariff rates last year. Our forecasts call for Q1FY26 EPS to increase by 84 per cent year-over-year on strong sales and margin expansion.”
Maintaining his “buy” rating for Groupe Dynamite shares, Mr. Landry raised his target to $110 from $102 based on his increased forecast. The average target on the Street is $104.86, according to LSEG data.
Elsewhere, others making target adjustments include:
* RBC’s Irene Nattel to $105 from $100 with an “outperform” rating.
“GRGD delivered strong and better-than-expected Q4 KPIs/results that point to accelerating performance through the period, including January/ February’s cold winter weather. While markets were generally expecting better- than-forecast results, magnitude of better-than-expected results/momentum and exceptionally strong return metrics supportive of Outperform rating notwithstanding the cloudy macro backdrop. In our view, as long as GRGD continues to deliver sector-leading results, re-rating should be sustained,” said Ms. Nattel.
* Desjardins Securities’ Chris Li to $100 from $95 with a “buy” rating.
“GRGD’s very strong results reflect continuing successful execution and resilient consumer demand. FY27 is off to a strong start despite macro challenges. GRGD’s forward P/E has contracted to 25 times from a peak of 32 times due to concerns over the war. While this remains a headwind, we believe GRGD’s business model should help mitigate its impact, as reflected by its strong FY27 outlook. For long-term investors, our positive view is supported by GRGD’s outsized double-digit EPS growth and its strong FCF and balance sheet,” said Mr. Li.
* Scotia’s John Zamparo to $100 from $95 with a “sector outperform” rating.
“GRGD will almost inevitably face a decelerating growth year, though we still believe expected low-double-digits same-store-sales growth is quite compelling, particularly when paired with the real estate strategy’s high-single-digits sales growth contribution. The brand continues to resonate with its customer set with a combination of innovation and marketing, particularly through social media. We continue to see apparel as a subsector for investors to gain exposure to, partly from its value proposition, and incremental today was the removal of concerns around air freight. We have increased our EPS estimates by double-digits for 26 and 27 and now project growth rates of 36 per cent this year and 18 per cent next year,” said Mr. Zamparo.
* National Bank’s Vishal Shreedhar to $102 from $101 with an “outperform” rating (and his “top pick” designation).
“We maintain a favourable disposition on GRGD,” said Mr. Shreedhar. “Investment in GRGD is differentiated by strong financial metrics, with an EBITDA margin and ROIC that is the highest in our coverage universe (F2025 EBITDA margin of 36.5 per cent and ROIC of 70.3 per cent).”
* TD Cowen’s Brian Morrison to $105 from $100 with a “buy” rating.
“Groupe Dynamite Q4/F25 results and the mid-point of initiated F2026 key metrics each exceeded consensus. Despite growing concerns upon consumer health, data/checks to date detail no signs of consumer demand slowing across all GDI geographies. Top line growth drivers including pricing power should drive attractive leverage/FCF/EPS growth in F2026, supporting a premium valuation multiple,” said Mr. Morrison.
* Canaccord Genuity’s Luke Hannan to $110 from $99 with a “buy” rating.
“In our view, GRGD’s store economics should continue to improve as the reconfiguration of its store base increases the company’s exposure to higher-tier shopping centres. Combined with average unit retail expansion above inflation, a shorter production cycle for its SKUs, and ample white space in both the US and international markets for its brands, we see plenty of opportunity for GRGD to improve its impressive returns on invested capital that are already at the high end of its peer group, which is currently trading at 11.9 times FY2 GAAP EV/EBITDA. Therefore, we are comfortable assigning a premium target multiple to GRGD shares,” said Mr. Hannan.
* BMO’s Stephen MacLeod to $106 from $100 with an “outperform” rating.
“Momentum has continued into FQ1, which we believe should remain supportive for the stock, underpinned by Groupe Dynamite’s positioning as a luxury-inspired, affordable indulgence; supply chain flexibility; ability to chase in-season; real estate strategy; and strong brand heat. We continue to believe Groupe Dynamite is well-positioned in the North American fast-fashion women’s apparel market, with several drivers supporting high-teens-plus adjusted EBITDA growth,” said Mr. MacLeod.
* Barclays’ Adrienne Yih to $118 from $100 with an “overweight” rating.
Seeing its shares “increasingly becoming linked to the ongoing Iran conflict,” RBC Dominion Securities analyst Nelson Ng lowered his rating for shares of Methanex Corp. (MEOH-Q, MX-T) to “sector perform” from “outperform” previously.
“With a year-to-date return of 49 per cent (17 per cent since the start of the Iran conflict), we believe the shares reflect the improving underlying fundamentals of the company (potentially accelerated deleveraging and share buyback timeline), as well as some methanol pricing upside from the Iran conflict,” he said.
Mr. Ng noted methanol prices have increased globally as Iran now produces approximately 10 per cent of the global supply, and the other Middle Eastern countries generating another 10 per cent.
“The uncertainty relates to when the conflict will end, and how long it will take for methanol prices to normalize,” he warned. “Management expects the realized methanol price in Q1/26 to be $330-340/MT (not impacted by the Iran conflict). Since the start of the Iran conflict, the shares of Methanex have appreciated by $9/share, and we estimate that it implies current prices remain elevated through the end of 2026.”
“Methanex recently released its monthly non-discounted methanol reference prices for April, increasing its North America, China, and Asia reference prices to $1,247/MT (up 33 per cent), $590/MT (up 74 per cent), and $740/MT (up 103 per cent), respectively. Methanex also released its European reference price for Q2/26 at €850/ MT (up 59 per cent). Since the company’s March reference prices were posted prior to the start of the Iran conflict, the company starts realizing elevated methanol prices starting in April. Based on our assumed 45-per-cent average discount and a geographic customer mix with a higher Asia weighting, we estimate that the posted prices imply a ~$173/MT increase for April relative to Q1/26."
To reflect Methanex’s latest posted reference methanol prices and Chemical Markets Analytics’ updated methanol price forecast, Mr. Ng raised his 2026 and 2027 earnings expectations. That led him to increase his target for the company’s shares to US$65 from US$55. The average is US$62.22.
“Our 2027 forecast generally assumes normalized methanol prices. We continue to forecast modest share buybacks starting in H2/26,” he said. “Once the Iran conflict is resolved, we believe methanol prices could quickly normalize, but remain modestly higher as there was some damage to the natural gas infrastructure in the Middle East.
“We note that Methanex’s financial results are very sensitive to the price of methanol. For every $50/MT increase/decrease in methanol prices, we estimate that the run-rate Adjusted EBITDA would increase/decrease by roughly $400 million.”
Higher fuel costs are adding the potential headwinds facing Air Canada (AC-T), according to National Bank Financial analyst Cameron Doerksen, who expects its stock to remain range-bound through the near-to-medium term.
“Whereas the average spot jet fuel price in Q1 last year was $0.97 per litre and the price in Q2/Q3 last year averaged $0.88 per litre, the price has spiked significantly higher as a consequence of the Iran conflict and currently sits at $1.75 per litre,” he said. “In the short-term, Air Canada has some protection: For Q1, prices only began rising in March and Air Canada had hedges in place as well as fuel inventoried such that the fuel cost impact in the quarter will be limited; For Q2, Air Canada indicates that it had 25 per cent of its fuel volumes hedged (at $0.69/litre on average before taxes and into-plane costs). Air Canada also implemented fuel surcharges and with booking demand still solid, the company expects it can offset much of the higher fuel costs for Q2.
“The fuel price concern is more pronounced for H2/26, especially for peak summer period. Air Canada has implemented fuel surcharges, which should help the airline increase fares as an offset, but higher fares usually lead to some demand destruction, so we highly doubt that Air Canada will be able to fully offset higher fuel costs with higher fares without impacting load factors.”
In a client note released before the bell, Mr. Doerksen warned higher airfares are “unlikely to fully offset” the impact of the jump in fuel prices. He estimates on a capacity-neutral basis, based on the current spot price of jet fuel, Air Canada would need to increase its average fares (base fare plus surcharges) by up to 20 per cent year-over-year to fully offset the impact.
“Outside the COVID-rebound period when industry capacity was severely constrained, but air travel demand was in full recovery, Air Canada’s quarterly year-over-year RASM [revenue per average seat mile] gains have never achieved that level of year-over-year growth in the past 20+ years,” he noted.
“Demand still solid, but market fairly competitive. Demand for air travel still looks positive even as fares have been lifted due to higher jet fuel costs, but we still see a competitive market. Our analysis of the important trans-Atlantic market this summer shows industry capacity up 5.2 per cent (versus 3.3 per cent industry capacity growth in summer 2025). For Q2, Canadian domestic industry capacity is up a fairly aggressive 6.5 per cent as airlines have shifted capacity out of the U.S. and into Canada. Higher capacity will make it more difficult to pass on higher fuel costs with higher airfares.”:
Also warning of the potential of further labour disruptions later this year as additional union contracts, including aircraft mechanics, ground handling, and customer service agents, face renewal, Mr. Doerksen cut his target for Air Canada shares to $22 from $25, maintaining a “sector perform” rating. The average on the Street is $24.09.
“On our updated 2026 forecast which reflects an assumed higher fuel price (but moderating in H2), Air Canada shares are trading at 3.7 times EV/EBITDA,” he explained. “This is slightly below the historical average forward multiple (excluding the pandemic years) of 3.8 times EV/EBITDA and well below the U.S. legacy airline peer group, which trades at 5.3 times 2026 EV/EBITDA on average. However, Air Canada shares have been trading below their historical average and a sizable discount to the U.S. peers for more than two years.
“We previously valued the stock by applying a 4.0 times EV/EBITDA multiple to our 2026 EBITDA forecast, but given the current fuel price volatility and the fact that Q1 of 2026 is now complete, we are rolling the basis for our valuation to 2027. After applying the same 4.0 times EV/EBITDA multiple to our updated 2027 estimates, our new target is $22.00 versus $25.00 previously.”
RBC Dominion Securities analyst Bart Dziarski does not see the fourth quarter of 2025 as a “clearing event” for Goeasy Ltd. (GSY-T), warning its valuation is likely to “remain capped” with its liquidity challenged until the second half of 2026 and growth “constrained” near term as it works through remediating issues in its LendCare portfolio."
Shares of the Mississauga-based subprime lender continue to fall on Wednesday following disappointing fourth-quarter results and a larger-than-expected impairment charge. It reported an adjusted earnings per share loss of $8.93, which was in line with Mr. Dziarski’s forecast of a loss of $9.07, driven by elevated net charge- offs (40.6 per cent) and higher provisions for credit losses in LendCare.
“Following updated amendments to GSY’s financing facilities, management expects near-term originations to be funded primarily by existing cash on hand and consumer debt pay downs with increasing liquidity available in H2/26,” the analyst said in a note titled Not out of the woods yet. “Additionally, growth in the bulk of LendCare, which represents 45 per cent of GSY’s book, is being halted due to a more conservative posture taken by management towards the portfolio. Overall, management expects gross consumer receivables to decline in H1/26 and improve in H2/26 with YE 2026 gross consumer receivables ending at $5.5-billion, flat year-over-year. Our estimates are in line with the guidance.”
Following his estimate revision in early March, Mr. Dziarski has made a second “meaningful” reduction to his forecast following Wednesday’s quarterly release and management’s latest outlook.
“Overall, our 2026 net yield assumption of 28.8 per cent is roughly in line with management’s outlook and we assume 2027 yields stay flat,” he said. “We are taking a more conservative view of NCOs [net charge-offs] as GSY is still in the process of remediating internal control weaknesses in LendCare and we don’t believe issues within the LendCare portfolio are fully resolved. Our 2026 NCO estimate of 17 per cent is above management’s 15-per-cent outlook. Lastly, when factoring in OPEX and interest expenses, we do not expect GSY to be profitable in 2026, resulting in BVPS declining from $53.07 to $50.15. Our 2027 estimates imply a modest improvement primarily driven by lower estimated NCOs resulting in adjusted EPS of $3.15 [down from $13.64].”
With those changes, he dropped his target for Goeasy shares to $33 from $52, keeping an “underperform” rating. The average is $52.28.
“We rate goeasy Underperform as the recent credit reset and balance sheet pressures materially change the company’s growth outlook. In our view, GSY’s near-term outlook is challenged by liquidity constraints, remediating issues in the LendCare portfolio, and elevated charge-off rates. We do not expect management’s 3-point action plan to take hold until 2028+. As a result, we see downside risk to valuation as investors reassess the durability of book value and the company’s ability to stabilize credit performance,” he concluded.
Elsewhere, seeing “an ugly quarter and an uncertain outlook,” ATB Cormark Capital Markets’ Jeff Fenwick downgraded Goeasy to “sector perform” from “speculative buy” and dropped his target to $42 from $85.
“GSY’s Q4 results largely reflected prior guidance on loan losses, revisions to lender agreements, and other related charges and adjustments. The financial results included a host of restatements across prior periods and updated accounting practices, including accounting for impairments and arrears. It is clear that the LendCare platform will be impaired for a long period, with GSY fully writing down related goodwill, running off the loan book, and shuttering the majority of its operations for the time being. The silver lining is that the easyfinancial operations have continued to produce consistent performance and will be the foundation of the future business plan. While there is a path forward, risks remain elevated, and we believe that Management and the Board have yet to settle on key details on the business plan and future strategy,” said Mr. Fenwick.
Others making target revisions include:
* Beacon Securities’ Doug Cooper to $80 from $275 with a “buy” rating.
“Fixing the sins of the past will take some time. However, given goeasy’s balance sheet and cash flow, we believe it will be able to,” said Mr. Cooper. “The opportunity within its market is as large as ever with limited competition. Recall that the 35-per-cent rate-cap imposed January 1, 2025 really created an oligopoly, especially within the unsecured side of its business.
“With the stock trading at 70 per cent of book value, it is clearing not pricing any return to material earnings. For those with long memories on this name, GSY has an early mis-step on its growth path in its lending business in 2012. Between 2010 and 2012, the stock dropped by 60 per cent and traded as low as 0.7 times book value. As the company resolved its issue by putting more oversight in place, EPS doubled over the next 3 years and the stock was up over 400 per cent (from $6 to $24). While history may not repeat itself, it does often rhyme. If the company can execute its turnaround and return to double-digit EPS, we believe the stock could triple from current levels.”
* Scotia’s Phil Hardie to $55 from $61 with a “sector outperform” rating.
“Investors had expected a weak quarter given challenges at the company’s point-of-sale financing business, LendCare, but results were worse than expected with core earnings and book value falling short of expectations,” said Mr. Hardie. “Q4/25 was impacted by $178-million in incremental charge-offs, a $160-million goodwill impairment, and a $72-million net increase in allowance for credit losses, all related to LendCare. The company is taking decisive action with a plan that includes immediately pulling back on weaker-performing businesses and refocusing the business toward unsecured loans, home equity, and direct-to-consumer as well as cost-savings initiatives.
“The stock is out of favour and the path to recovery will take some time, but we believe tail risks are receding and the stock remains oversold. The company’s strategic roadmap targets stabilization in 2026, platform investment in 2027, and disciplined high performance by 2028 and beyond.”
* Desjardins Securities’ Gary Ho to $47 from $64 with a “buy” rating.
“While 4Q results missed our expectations and 1Q is likely to remain weak as GSY works through the legacy LendCare book, our view following the conference call turned more constructive given reduced equity financing risk and sufficient organic cash flow and liquidity to fund near-term debt maturities. ... The shares offer a decent risk-reward trade-off at 0.7 times P/BV and 4 times FY27E P/E,” said Mr. Ho.
* National Bank’s Jaeme Gloyn to $38 from $50 with a “sector perform” rating.
“Our initial view of the Q4 financials tilted negative given: i) delinquency rates running significantly higher than previously thought; ii) higher than expected charge-offs in Q1-26 with greater uncertainty regarding elevated macro and execution risk; and iii) lack of access to additional funding. The conference call confirmed risks remain elevated,” said Mr. Gloyn.
* Raymond James’ Stephen Boland to $50 from $77 with a “market perform” rating.
“On a broader view, we believe the LendCare business lines retain value under the right operational framework. Other successful sub-prime auto lenders have implemented additional controls to maintain access to both the asset and the borrower, including GPS tracking and starter-interrupt technology. We view these measures as necessary to support a resumption of LendCare portfolio growth or a shift toward higher credit quality. Finally, management will need to more clearly articulate the factors that led to this outcome and the steps taken to prevent a recurrence,” said Mr. Boland.
* TD Cowen’s Graham Ryding to $36 from $44 with a “hold” rating.
“We believe they have the ability to manage liquidity over the near-term by pulling back on originations. Access to the amended revolver and securitization facility 1 should allow them on focus on easyfinancial originations in 2H/26 (Lendcare being materially scaled back). Profitability is forecast to resurface in 2H/26, and build in 2027. We maintain our Hold rating given the fluid outlook,” said Mr. Ryding.
In other analyst actions:
* TD Cowen’s David Kwan initiated coverage of Healwell AI Inc. (AIDX-T) with a “buy” rating and $1.75 target, seeing it “well-positioned to benefit from increasing AI adoption in healthcare.” The average target is $2.50.
“We believe the shares are poised to continue the rebound from their recent 52-week low, as HEALWELL benefits from its strengthened competitive position with the transformational Orion acquisition and its proven/validated AI and Data Science platform. We expect increased cross-selling wins to drive stronger organic growth and margin expansion, which should help drive a re-rating,” he said.
* In a report titled Many Levers to Future Growth in the Mortgage Market, Raymond James’ Stephen Boland initiated coverage of Dominion Lending Centres Inc. (DLCG-T) with an “outperform” rating and $11.50 target, matching the average on the Street.
“Our thesis is centered on a capital-light brokerage platform with a long runway for organic growth driven by increasing mortgage broker adoption in Canada, which we believe can support sustained revenue expansion even in a more moderate housing environment. Beyond this core driver, DLCG offers incremental upside through expansion into adjacent verticals such as lending (Heartwood) and insurance brokerage, providing multiple pathways for earnings growth,” he said.
* Citing cost savings initiatives and international growth potential, Roth/MKM’s Bill Kirk upgraded Tilray Brands Inc. (TLRY-Q, TLRY-T) to “buy” from “neutral” with a $10 target (unchanged). The average on the Street is $8.57.
Elsewhere, ATB Cormark’s Frederico Gomes cut his Tilray target to US$9 from US$9.50 with a “sector perform” rating.
“Tilray’s Q3/FY26 results met expectations and were highlighted by record international cannabis sales ($24.1-million, up 73.1 per cent year-over-year) driven mostly by growing demand in Germany. While the Canadian adult-use, distribution, and wellness segments showed growth, the beverage division struggled with a 23.9-per-cent sales decline and margin contraction. Despite optimism regarding international cannabis expansion, we remain overall cautious due to soft beverage industry trends and execution risks surrounding the BrewDog integration,” said Mr. Gomes.
* Raymond James’ Steve Hansen trimmed his Boyd Group Services Inc. (BYD-T) target to $270 from $276 with a “strong buy” rating. The average is $265.89.
“We continue to recommend shares of Boyd Group Services (Boyd) following recent channel checks that: 1) reaffirmed our view the cyclical recovery in NA collision repair remains in-tact; 2) corroborated short-term weather dislocations in Jan-26 (as recently guided by Boyd); 3) reinforced the notion of re-accelerating shop activity through Feb/Mar; and 4) pointed to sustained tailwinds in 2Q26. Notwithstanding these positive signals, we have tweaked our 2026 estimates to account for modest timing & weather-related impacts associated with Boyd’s recent Joe Hudson acquisition,” said Mr. Hansen.
* Stifel’s Justin Keywood bumped his DRI Healthcare Trust (DHT.UN-T) target to $22 from $21, which is the average, with a “buy” rating.
“We conservatively add $1, following VRDN REVEAL-1 Ph3 trial results, which hit the end-point with a statistically-significant separation vs. placebo (54 per cent vs. 18 per cent p<0.0001) and well-tolerated safety profile. However, the placebo-adjusted delta (36%) was below the incumbent, Tepezza, IV format (50-70 per cent) and VRDN’s Veligrotug IV, (65 per cent). Veligrotug IV has a June 30 PDUFA date with less infusions/time at clinics required vs. incumbent, Tepezza (US$1.9-billion sales, 2025). Coupled with elegrobart subcu, we see DRI’s 7.5-per-cent royalty, up to US$600-million net sales (first tranche) as highly probable, assuming FDA approval. We also believe that DRI’s expected milestone payments will reduce by US$40-million, reflecting the lower efficacy of the subcu format but still solid asset. The focus now shifts to the PDUFA date and Ph3 read-out for subcu chornic and near-term catalysts to drive shares higher. We expect DRI to resume M&A subsequently (also catalyst) as the Pharma royalty sector remains robust,” said Mr. Keywood.
Editor’s note: An earlier version of this article said an analyst at Raymond James raised his target for Boyd Group shares. He actually reduced them. This version has been updated.