Inside the Market’s roundup of some of today’s key analyst actions
Scotia Capital analyst Meny Grauman expects the impact of a potential tariff war with the United States is likely to dominate discussions during first-quarter earnings season for domestic banks, which is set to begin next week.
“At its most basic level the performance of Canadian bank stocks can never veer too far from the country’s economic prospects, which is why we are concerned about the sector right now,” he said. “Canada is at an unprecedented economic crossroads even if the threat of tariffs never materializes, and yet the shares do not appear to be reflecting the seriousness of moment given that the group is down just 3 per cent since Q4 reporting (6 per cent ex-TD which is riding a wave of positive news including an accelerated CEO transition and sale of its remaining Schwab stake). The silver lining in all of this uncertainty is that the gravity of the situation can (and should) provide the impetus to drive significant changes in Canadian economic policy that will finally address the country’s lagging productivity and usher in a period of renewed prosperity even in the face of US trade uncertainty. But we have to acknowledge that right now this positive outlook is not a sure thing, especially in the current political climate which includes a prorogued parliament, and a Liberal leadership race.”
In a research report released Thursday titled There Must Be Some Kind of Way Out of Here, Mr. Grauman acknowledged the boost in patriotism in Canada due to the threat of a trade war, however he emphasized “a clear rise in anti-U.S. sentiment risks diluting the growing consensus that the country needs a pro-growth economic agenda.”
“On the regulatory front we believe that OSFI’s recent decision to ‘defer increases’ to the Basel III capital floor is a good idea, but we also think that a broader rethink (or at least debate) of our capital framework is needed considering where US capital rules are headed,” he said. “In our view now is the time for real action, and this is not a political statement but something that goes to the very heart of our national prosperity. There is a path forward that is bullish for both our economy and our banks, but that path forward requires a true rejection of the status quo and a true embrace of a pro-business agenda. We don’t see much evidence of that yet, but hope it will come.
“Given all of this, and despite our outlook for a generally constructive Q1 earnings season, the economic uncertainty triggered by U.S. tariff threats is putting Canadian bank stocks in a very difficult position, one that at this point we believe justifies downward earnings revisions and lower valuations for the group as a whole.”
Heading into the quarter, Mr. Grauman said he like the setup for Canadian Imperial Bank of Commerce (CM-T) and Royal Bank of Canada (RY-T), and he is “most cautious” on National Bank of Canada (NA-T) and Toronto-Dominion Bank (TD-T) among the larger banks.
“We come into this earnings season questioning how relevant Q1 results are as we see risks building that can very clearly derail the building momentum that we are likely to observe,” he added. “The risk of tariffs, and even just the threat of tariffs, could stall out investment banking activity, as well as lower the odds of an acceleration in loan demand including in the residential mortgage market, and make the prospect of improving credit trends in late 2025 and into 2026 a lot less likely as well. The potential impact of tariffs on all of these key earnings drivers is likely to dominate the earnings calls this quarter, and one key area of interest in particular will be how banks’ expect performing PCLs to reflect tariff risks going forward.
“From a stock-selection perspective, tariff risk is driving our bank pecking order which is why BMO remains our top pick in the group given its group-high U.S. exposure. We also continue to favor RY which should continue to hold on to its position as a flight to safety destination despite an already elevated relative valuation. Meanwhile, NA and TD are at the bottom of our pecking order. NA only has marginal US exposure which makes it more vulnerable to Canadian economic fortunes, and although the market liked TD’s sale of its Schwab stake we view that transaction as a strategic mistake, and are not convinced that the excess capital released in that deal will be able to be effectively deployed in Canada under the current macro circumstances.”
With his forecast adjustments, Mr. Grauman made these target changes:
- Bank of Montreal (BMO-T, “sector outperform”) to $159 from $160. The average on the Street is $146.40, according to LSEG data.
- Canadian Imperial Bank of Commerce (CM-T, “sector outperform”) to $95 from $114. Average: $94.39.
- EQB Inc. (EQB-T, “sector outperform”) to $119 from $130. Average: $119.25.
- Laurentian Bank of Canada (LB-T, “sector perform”) to $28 from $33. Average: $28.36.
- National Bank of Canada (NA-T, “sector perform”) to $125 from $154. Average: $137.54.
- Royal Bank of Canada (RY-T, “sector outperform”) to $191 from $197. Average: $177.01.
- Toronto-Dominion Bank (TD-T, “sector perform”) to $82 from $83. Average: $87.50.
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Stifel analyst Martin Landry thinks Gildan Activewear Inc.’s (GIL-N, GIL-T) 2025 financial guidance “suggests continued momentum” and sees all its operating channels poised to contribute to growth.
“Gildan’s 2025 guidance is calling for revenues to increase by mid-single digits year-over-year, in-line with the company’s long-term goals and our expectations,” he said.. “As a result, we have made limited changes to our revenue forecasts for 2025 and 2026. In the printwear channel, Gildan is expected to benefit from competitors exiting the market, potentially leading to market share gains. In addition, the company appears to have momentum in other channels, namely with Global Lifestyle Brands and with mass retailers as three-quarters of Gildan’s 2025 revenue growth is expected to come from new programs.”
“Management is guiding for operating margins to expand by 50 basis points to 21.8 per cent, slightly lower than our expectations of 22.1 per cent. The margin drivers we previously expected are still there, namely, more efficient production at the Bangladesh facility, benefits from the modernization of Gildan’s yarn spinning operations and lower cotton costs. However, unexpected investments in IT, to optimize the company’s supply chain and cope with the increasing number of SKUs, are acting as a slight headwind which we did not anticipate. We have decreased our 2025 operating margins down to 21.9 per cent.”
On Wednesday, TSX-listed shares of the Montreal-based clothing manufacturer jumped 4.1 per cent after it revenue for its fourth quarter of 2024 of US$822-million, up 5 per cent year-over-year and exceeding both Mr. Landry’s US$787-million estimate and the Street’s forecast of US$804-million. Adjusted earnings per share rose 11 per cent to 83 US cents, also topping expectations (80 US cents and 81 US cents, respectively), while the company introduced 2025 guidance of US$3.38 to US$3.58, falling in line with projections (US$3.49 and US$3.46).
“Q1/25 guidance calls for a low single-digit revenue increase is premised on mid-single-digit organic growth, offset by the phase-out of the Under Armour license,” the analyst said. “Management expects operating margin expansion of 50 basis points, driven by a higher gross margin, partly offset by higher SG&A expenses, namely higher IT spending and variable compensation. Our Q1/25 EPS estimate of $0.55 represents a 7-per-cent year-over-year decline, reflecting an assumed income tax rate of 17 per cent, which is significantly higher than last year’s 3.6 per cent, due to the year-over-year impact of the enactment of GMT.”
Mr. Landry also applauded the decision to promote Chuck Ward, currently president of sales, marketing and distribution, to the new role of executive vice-president and chief operating officer effective March 1 and Luca Barile, currently CFO, Sales, Marketing and Distribution, as executive vice-president and chief financial officer following retirement of Rhodri Harries.
“We see these promotions positively, as both candidates have more than 10 years of experience at Gildan In addition, they address some of the succession planning concerns which created a turmoil in late 2023,” he said.
Raising his 2025 and 2026 earnings and revenue estimates, Mr. Landry increased his target for Gildan shares by US$5 to US$65, reiterating a “buy” recommendation. The average target on the Street is US$59.09, according to LSEG data.
“Gildan’s 2027 outlook calls for EPS growth in the mid-teens annually, which is higher than historical growth rate of approximately 10 per cent in the last 10-years,” he said. “As a result, we believe that Gildan’s valuation could re-rate higher as investors are likely to assess higher valuation multiples due to the faster growth profile. At 13.5 times forward earnings (PEG ratio below 1 times) we believe that Gildan’s shares do not properly reflect the company’s growth prospects.”
Elsewhere, others making target adjustments include:
* Canaccord Genuity’s Luke Hannan to US$58 from US$53 with a “buy” rating.
“All told, we came away from the quarter with reinforced confidence in Gildan’s ability to generate organic growth from recent product introductions, its successful Bangladesh facility ramp, and its low-cost manufacturing base,” said Mr. Hannan. “For Q1/25, management expects low single-digits sales growth driven by broad-based strength in Activewear (share gains, new products, and programs), though partially offset by the phase out of the Under Armour license within Hosiery and Underwear. In addition, management expects to see an increase in gross margins with capacity coming online in Bangladesh, along with yarn-spinning optimization.
“For 2025, we remain optimistic on Gildan’s ability to deliver on its guidance, especially when considering that the bulk of the growth is from new programs. With pricing staying stable in early 2025, management expects volume growth to be the main driver of revenue for the year, offsetting any currency-related headwinds in international markets. Moreover, we believe there may be upside to 2025 guidance as it currently assumes an industry that is flat to up low single-digits.”
* National Bank’s Vishal Shreedhar to $83 (Canadian) from $78 with an “outperform” rating.
“GIL is well positioned for continued EPS growth in 2025 given: (i) revenue growth (new capacity, market share growth, product innovation, etc.), (ii) improving costs (input costs, efficiency, etc.), and (iii) share repurchases,” he said.
* TD Cowen’s Brian Morrison to US$65 from US$62 with a “buy” rating.
“On the back of Gildan’s Q4/24, release we have increased confidence in its growth outlook through 2027,” said Mr. Morrison. “Its investment in innovation and capacity is further differentiating its offering while widening its cost advantage. This is driving market share gains, new contract wins, margin expansion, and strong FCF. This should result in mid-teen annual EPS and, in our view, lead to multiple expansion.”
* Citi’s Paul Lejuez to US$62 from US$59 with a “buy” rating.
“GIL is continuing to execute well and is well-positioned to gain market share across categories, supporting its mid-single-digit sales growth outlook,” he said. “We continue to like the stock.”
* Desjardins Securities’ Chris Li to $87 from $82 with a “buy” rating.
“We believe GIL is well-positioned to achieve another year of mid- to high-teens EPS growth,” said Mr. Li. “We expect this to drive share price appreciation, with upside from multiple expansion supported by investors’ increased confidence in GIL’s earnings consistency. While an economic downturn is a risk, GIL should be able to offset the impact with its robust new program pipeline, product innovation and market share gains. Despite strong year-to-date performance (15 per cent), GIL’s forward P/E is in line with its 15 times average.”
* CIBC’s Mark Petrie to US$60 from US$56 with an “outperformer” rating.
* BMO’s Stephen Macleod to US$64 from US$58 with an “outperform” rating.
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While the Street punished Gibson Energy Inc. (GEI-T) on Wednesday following weaker-than-anticipated fourth-quarter 2024 financial results, sending its shares plummeting 7.9 per cent, TD Cowen analyst Aaron MacNeil thinks “the issues that impacted the quarter are transitory,” and he’d be willing to reconsider his investment thesis stance if further share price weakness persists.
“We calculate that WCSB egress will be at capacity in Q4/26 without any egress expansions, providing a positive backdrop for Gibson’s marketing business,” he said.
After the bell on Tuesday, the Calgary-base company reported quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $129.7-million, falling 16 per cent below Mr. MacNeil’s $153.6-milion esitmate and 14 per cent under the Street’s expectation of $151.1-million. He said the largest variance was a loss in the Marketing segment, which came below management’s previous guidance range.
“Our updated estimates contemplate management’s Q1/25 marketing guidance of breakeven,” said the analyst. “On a full-year basis, 2025 marketing EBITDA is flat on a year-over-year basis. Our Infrastructure EBITDA remains largely unchanged with this update. Our 2025, 2026, and 2027 EBITDA estimates decrease by 5 per cent, 1 per cent, and 1 per cent, respectively.”
“We have reduced our Marketing segment EBITDA estimate consistent with management’s guidance noted above and in our go-forward estimates. We note that our Infrastructure and Corporate segment EBITDA estimates remain largely unchanged with this update, given management’s commentary that accurals incurred in the quarter are nonrecurring.”
Reiterating a “hold” recommendation for Gibson shares, Mr. MacNeil trimmed his target to $24 from $25. The average is $25.63.
“Gibson offers investors an attractive yield with a low risk, predominantly contracted cash flow profile,” he said. “We expect that investors will focus on the negative disclosures in the nearterm, and note that Gibson trades at a 2025 EV/EBITDA multiple of 9.7 times, slightly below its historical 10-year mean of 10.0 times.”
Elsewhere, others making adjustments on Thursday include:
* RBC’s Maurice Choy to $26 from $28 with an “outperform” rating.
“While much of the market’s focus will rightfully be on the Marketing segment (e.g., Q4/24 underperformance, outlook) and the company’s recent leadership changes in the immediate term, we believe the positives relating to Gibson Energy’s solid core Infrastructure business (90-95 per cent of total EBITDA), attractive and growing dividend (with the stock yielding roughly 8 per cent), and upcoming clarity on its next phase of growth (at the yet-to-be-announced Investor Day) will ultimately take hold of the stock’s sentiment through the year, leading to a recovery of the company’s share price,” said Mr. Choy.
* Scotia’s Robert Hope to $26 from $27 with a “sector outperform” rating.
“Gibson’s shares were weak (down 7 per cent) following its Q4 results as the magnitude of the Marketing weakness surprised investors,” said Mr. Hope. “We expect this Marketing weakness will persist into 2025 and 2026, and as such, we move down our 2025/2026 EBITDA estimates by 3 per cent. Our 2027 estimates do not materially move. While Marketing weakness is disappointing, we highlight that it only represents 14 per cent of our 2027 EBITDA and 10 per cent of our NAV. Gibson’s Infrastructure outlook, which is the bedrock of our outperform thesis, continues to be strong and management spoke bullishly on further growth in both Canada and the U.S.”
* Raymond James’ Michael Barth to $29.50 from $30.50 with a “strong buy” rating.
“Despite a sizeable headline Marketing miss, we think the market overreacted [Wednesday], and view the pullback as a buying opportunity,” he said. Our target does move modestly lower on revised estimates, but remains well above the current share price. The core Infrastructure business continues to perform well, and we see a path to continued growth that we don’t believe the company gets any credit for. As such, we reiterate our Strong Buy rating, and see GEI stock as offering the best risk/reward in the peer group today.”
* Jefferies’ Anthony Linton to $23 from $26 with a “hold” rating.
* ATB Capital Markets’ Nate Heywood to $26 from $28 with an “outperform” rating.
* CIBC’s Robert Catellier to $27 from $29 with an “outperformer” rating.
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While he saw Hudbay Minerals Inc.’s (HBM-T) 2025 guidance as “disappointing,” pushing his EBITDA estimate down by 8 per cent, RBC Dominion Securities analyst Sam Crittenden continues to see potential for “strong” free cash flow this year as its benefits from the remaining high grades in Peru and strong gold production in Manitoba.
Shares of the Toronto-based miner plummeted 13.3 per cent on Wednesday after it said it now expects copper production of 133,000 tonnes at the midpoint of its guidance range in 2025, largely stable with 2024 levels (133,000 tonnes) while the Street had projected 155,000 tonnes. It sees gold production sliding from the last fiscal year to 277,750 ounces, missing the previous consensus projection of 309,000 ounces.
“The primary cause of the negative copper production guidance revision was due to higher dilution and less contained copper in the Pampacancha satellite pit at the Constancia mine in Peru which will be depleted in November this year,” said Mr. Crittenden. “Other operations were more or less as expected, while the lower gold content in Pampacancha was due to mining more gold than expected in 2024 (they exceeded the upper end of guidance) which leaves less for 2025. We also estimate that $20-25-million of EBITDA will be recovered in Q1/2025 as inventories are drawn down after sales lagged production in Q4 due to trucking delays.
“FCF potential at record gold prices: The positive revision to guidance was an 8-per-cent uplift in gold production in Manitoba which comes as gold is at all time highs. Hudbay generated $357-million in FCF In 2024 and at spot prices we estimate they can generate another $220-milllion in 2025 (7-per-cent yield). The balance sheet has been strengthened significantly which positions the company to complete the re-capitalization of Copper Mountain and start developing Copper World as early as 2025 (net debt fell by $512-million in 2024 to $526-million and net-debt/EBITDA fell to 0.6 times from 1.6 times after FCF and the $400-million equity financing in May).”
Maintaining an “outperform” recommendation for Hudbay shares and seeing its valuation as “attractive,” Mr. Crittenden cut his target by $1 to $15 after reducing his 2025 and 2026 earnings expectations. The average is $15.21.
“Hudbay provides exposure to copper and gold production through the Constancia mine (Peru), Copper Mountain (BC), and Lalor (Manitoba), while the Copper World project (US) could be the key to future production growth,” he said. “High copper and gold grades from the Pampacancha deposit at Constancia should contribute significant FCF over the next 18 months while further Copper Mountain integration and stabilization could improve operating performance. Copper World continues to be de-risked with the last (of three) outstanding state permits expected by management later in 2024, which could initiate partnership discussions. We believe Hudbay can reduce the valuation gap with peers by delivering production growth in Peru, integrating Copper Mountain, and de-risking the Copper World Project in Arizona.”
Other changes include:
* National Bank’s Shane Nagle to $15.50 from $17, keeping an “outperform” rating.
“We have lowered our target modestly after incorporating a softer 2025 outlook. An improving near-term growth outlook, upcoming catalysts at Copper World and a discounted valuation are all remain supportive of our Outperform rating,” Mr. Nagle said.
* TD Cowen’s Craig Hutchison to $14 from $15 with a “buy” rating.
“HBM reported solid Q4/24 results but 2025 guidance came in well below our estimates and consensus based on last year’s three-year outlook,” he said. “The net result reduced our production, earnings and NAV estimates lowering our TP to $14. Given the sharp share price pullback (down 13 per cent), we continue to see value in the shares and expect Copper World partnering this year to serve as the next major catalyst.”
* Canaccord Genuity’s Dalton Baretto to $14 from $15.50 with a “buy” rating.
“We view [Wednesday’s] sell-off in HBM shares as overdone and attribute it to some investors taking money off the table following the 60-per-cent return in 2024 and the view that the stock is a crowded long trade,” said Mr. Baretto.
* Scotia’s Orest Wowkodaw to $14 from $15.50 with a “sector outperform” rating.
“HBM reported in-line Q4/24 results,” he said. “More important, updated 2025 guidance was well below our expectations due to a weaker outlook in Peru (driven mostly by Pampacancha which depletes this year). Deleveraging efforts continue ahead of a potential Copper World build starting in 2026. We view the update as negative for the shares given our sharply lower estimates; however, the 15-per-cent sell off appears overdone.
“We rate HBM shares SO based on valuation, high leverage to Cu-Au prices, and takeover optionality.”
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Seeing a “catalyst-heavy” 2025 ahead for Marimaca Copper Corp. (MARI-T) as it focuses on de-risking its 100-per-cent owned flagship Marimaca Oxide Deposit project in Chile and proceeds with exploration for both near mine expansion opportunities and district scale growth, National Bank Financial analyst Andrew Dusome initiated coverage with an “outperform” recommendation.
“Our Outperform rating is supported by Marimaca’s expected peer-leading capital intensity aided by near-surface oxides resulting in low LOM strip and proximity to existing infrastructure (water, acid, power, highways, port, workforce),” he said. “We also see further upside from an expected aggressive drill program during this year. We ascribe a Speculative risk rating, as Marimaca will be exposed to similar risks as other exploration and development-stage companies in the NBF coverage universe.”
In a research report released Thursday, Mr. Dusome emphasized three factors in justifying his bullish stance on the Toronto-based miner:
1. It’s “peer-leading capital intensity.”
Analyst: “The MOD project is located 25 kilometres from the Mejillones port, where both the sulphuric acid and water necessary for the project will be sourced from. Additionally, the project is located close to existing highways and power, further reducing the amount of infrastructure required for development, while the nearby cities of Mejillones (25 km from site) and Antofagasta (45 km) provide access to a skilled workforce resulting in no requirement for accommodation/housing. These infrastructure and location benefits combined with conventional open pit mining with minimal pre-strip required and a lower cost SX-EW processing method all result in Marimaca exhibiting peer-leading capital intensity.”
* Further exploration potential not included in the current base case.
Analyst: “Marimaca’s current MRE statement only includes M&I and Inferred resources from the Marimaca Oxide Deposit, which is expected to form the basis of the updated DFS to be released in the coming months. Across the rest of Marimaca’s land package, there are several exploration opportunities (Sierra de Medina property block, Marimaca district satellite targets and sulphide potential below the MOD) which we expect the company to continue to focus exploration efforts on. These targets show compelling upside for LOM extension and the possibility to replace lower grade MOD tonnes towards the middle to end of the LOM with higher grade tonnes, further improving project economics resulting in NAV/sh growth.
* Its location at low elevation in a top-tier copper mining district.
Analyst: “Given Marimaca’s location in a major copper mining district, there are several producing mines nearby owned by both intermediate and major copper producers, which in our opinion make Marimaca a potential acquisition target. Outside of M&A opportunities, Marimaca’s location provides advantages when looking to attract talent given the large pool of skilled workers in the Antofagasta region. An additional benefit we see from Marimaca’s low elevation is the lower permitting risk given the project is not near any glaciers, which has historically resulted in construction/permitting delays and large opposition from downstream communities who rely on the glaciers as a crucial water source.”
The analyst set a target of $7.50 for Marimaca shares. The average target on the Street is $6.56.
“Our $7.50 target price is based on ascribing a multiple of 0.80 times to our fully financed project NAV plus corporate adjustments,” he explained. “This multiple is on the higher end of our average copper explorer/developer P/NAV in the NBF coverage universe. We believe the higher multiple is warranted given the attractiveness of the project, which is expected to have peer-leading capital intensity, a low payback period given the highgrade core, prospective exploration upside and is located in a stable and leading copper mining jurisdiction.”
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In other analyst actions:
* BMO’s Tamy Chen upgraded Canadian Tire Corp. Ltd. (CTC.A-T) to “outperform” from “market perform” with a $170 target, rising from $155. The average on the Street is $160.82.
* RBC’s Douglas Mihem cut his Bausch + Lomb Corp. (BLCO-N, BLCO-T) target to US$18 from US$22 with an “outperform” rating. The average is US$20.25.
“BLCO reported Q4 revenues that were slightly better than estimates (2 per cent) while the adj. EBITDA were broadly in-line with estimates,” he said. “2025 revenue and adj. EBITDA guidance bracketed estimates. However, the mid-point of adj. EBITDA guidance was 2 per cent below consensus and the RBC forecast. We have revised our outlook to account for the guide commentary. Our PT is revised lower to $18 from $22 as we reduce the sale/full separation probability from 60 per cent to 20 per cent. BLCO shares could continue to trade below their fair value until the market receives clarity on BHC’s 88-per-cent equity ownership in BLCO.”
* JP Morgan’s Seth Seifman lowered his target for Bombardier Inc. (BBD.B-T) to $100 from $110 with a “neutral” rating. The average is $113.93.
* Desjardins Securities’ Frederic Tremblay raised his Colabor Group Inc. (GCL-T) target to $2 from $1.85 with a “buy” rating. The average is $1.87.
“We view the agreement to acquire the food distribution assets of Alimplus and its subsidiary Tout-Prêt positively,” he said. “The transaction, which is expected to close in 2Q25, looks financially and strategically sound as it should provide a significant and profitable acceleration of GCL’s growth strategy, particularly its expansion in the Greater Montreal Area/western Quebec. We believe the companies will be stronger together, and we expect synergies to emerge, including cross-selling and improved purchasing power.”
* Ahead of its March 3 earnings release, National Bank’s Zachary Evershed cut his DRI Healthcare Trust (DHT.UN-T) target by $2 to $17.50 with an “outperform” rating. The average is $19.39.
“We revise our estimates, incorporating the latest consensus forecasts for marketer sales and the weakening CAD/USD,” he said. “We also introduce our 2026 detailed forecasts; this has no impact on our target, which is driven by a long-term DCF. We nudge our Q4/24 profitability forecasts slightly lower as we expect some carryover of investigation expenses into the quarter, though not to the extent seen in Q3.”
* CIBC’s Paul Holden raised his IA Financial Corp. Inc. (IAG-T) target to $149 from $144, exceeding the $144.50 average, with an “outperformer” rating. Other changes include: BMO’s Tom Mackinnon to $150 from $140 with an “outperform” rating, RBC’s Darko Mihelic to $141 from $137 with a “sector perform” rating and Desjardins Securities’ Doug Young to $145 from $140 with a “hold” rating.
“Core EPS was $3.04 vs our estimate of $2.85 and consensus of $2.80 — a decent beat even if we exclude the $0.10 benefit from a lower-than-expected tax rate,” said Mr. Young. “Now, all eyes are on next Monday’s investor day, where we expect IAG to update its medium-term targets, which would follow a trend laid out by peers. We increased our estimates and target price.”
* In response to a costing update for its Stibnite gold-antimony project in Idaho, National Bank’s Mike Parkin reduced his target for Perpetua Resources Corp. (PPTA-T) to $20 from $22.50 with an “outperform” rating. The average is $24.54.
“Overall, we continue to see Stibnite as a quality project, that could be viewed by a large producer as a potential target asset to be acquired,” he said.
* National Bank’s Matt Kornack raised his target for units of RioCan REIT (REI.UN-T) to $22.25 from $22 with an “outperform” rating. Other changes include: Scotia’s Mario Saric to $21.50 from $20.75 with a “sector perform” rating and Desjardins Securities’ Lorne Kalmar to $22 from $23 with a “buy” rating. The average is $21.85.
“REI ended the year off on a positive note, with peak occupancy levels on a committed basis and outsized blended leasing spreads (peer leading to boot for renewals), both of which should allow the REIT to comfortably achieve its 2025 SPNOI guidance, notwithstanding macro noise from potential tariffs,” said Mr. Kornack. “Management has been adamant in their confidence on condo closings, moving past this would represent a de-risking event with the incremental proceeds used to deleverage the REIT. NCIB will be opportunistic as the current trading price represents a strong use of proceeds but balance sheet strength will be a governor (nonetheless, $60-million post-Q activity is an optimistic signal).”
* CIBC’s Cosmos Chiu trimmed his Sandstorm Gold Inc. (SSL-T) target to $9.50 from $10 with a “neutral” rating, while Raymond James’ Brian MacArthur to US$8.25 from US$8.50 with an “outperform” rating. The average is $10.73.