Inside the Market’s roundup of some of today’s key analyst actions
Following “mixed” first-quarter financial results, RBC Dominion Securities’ Drew McReynolds was one of two equity analysts on the Street to downgrade Verticalscope Holdings Inc. (FORA-T), hoping to see greater clarity on its monthly active users (MAU) "in light of the fast-evolving search environment."
"We continue to believe new initiatives (products, features, formats, AI enhancements), accretive tuck-in M&A and a still highly profitable and FCF-generative business model can drive attractive returns for shareholders at current share price levels,“ he explained. ”Furthermore, we believe VerticalScope can reposition itself to ultimately benefit from what is now rising demand for authentic content in a proliferating GenAI-driven content environment that will necessitate much more sophisticated personalization. However, we believe visibility on the MAU trajectory and more broadly the company’s earnings power in the wake of Google’s algorithm change has deteriorated given the now fast-evolving search environment (and to a lesser extent renewed cyclical headwinds). We look for more timely and/or attractive entry points."
After the bell on Tuesday, the Toronto-based digital media company reported quarterly revenue of $13.566-million, down 7.9 per cent year-over-year but narrowly higher than Mr. McReynolds’s $13.524-million estimate and the consensus forecast of $13.3-million. Earnings per share of a loss of 11 cents fell short of projections (losses of 3 cents an 8 cents, respectively).
The analyst said the results reflected an algorithm change from Google as well as softer digital advertising.
“Management continues to believe forum content will remain highly relevant within the purchase journey and is confident in making the necessary strategic pivots in response to the Google algorithm update that favours AI Overview/YouTube (effectively pushing organic search results further down the page),” he said. “Against this backdrop, our focus is threefold: (1) understanding the magnitude/timeframe for MAU stabilization and/ or recovery given the multiple company initiatives that are underway (including AI enhancements, revamped SEO, and diversifying sources of traffic); (2) the advancement in AI capabilities and changes in consumer search behaviour that will influence the role that forums will play at or near the bottom of the sales funnel in a GenAI/AgenticAI environment (and forum economics therein); and (3) how the necessary pivots management are making ultimately impact what remains a highly profitable and FCF-generative business model. ”
With reductions to his revenue and earnings expectations through fiscal 2027, Mr. McReynolds lowered VerticalScope to a “sector perform” recommendation from “outperform” and cut his target for its shares to $6 from $9. The average target on the Street is $7.69, according to LSEG data.
Elsewhere, Canaccord Genuity’s Aravinda Galappatthige moved the stock to “speculative buy” from “buy” with a $6 target, down from $10.
"VerticalScope’s Q1 results were below expectations, both in terms of revenue and profitability," said Mr. Galappatthige. “Recall FORA sharply lowered its outlook for F2025 following the core Google algorithm change in March. In addition to additional downward revisions to our EBITDA estimates to reflect investments being made by the company to drive traffic, comments on the call suggest a notable decline in MAUs in Q2 of over 25 per cent year-over-year. The nature of the algorithm change suggests that the impact on FORA and other user-generated platforms could have more longevity than prior adjustments, in our view. This, in turn, means that digital revenues could be under pressure for a period of time.”
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Seeing its “desired executive” returning, Scotia Capital analyst Konark Gupta raised his recommendation for CAE Inc. (CAE-T) to “outperform” from “sector perform” previously, touting a “surprisingly quick Defence margin recovery.”
“This is a fundamental call, not a valuation call, although risk/reward has improved with the stock down 12 per cent since the mid-Feb peak,” he said. “Our main concern when downgrading CAE back in early 2024 was low conviction in Defence margin recovery. Soon after, Civil demand also started decelerating due to airline industry issues. Fast forward to today, Defense margin execution has improved faster than expected and leverage ratio has normalized, aided by stronger FCF conversion. However, Civil is still navigating uncertainties in the short term, albeit long-term secular theme remains in place. CAE has also refreshed the Board and is getting closer to CEO succession this summer (former CFO had also stepped down last year).
“We believe the company has essentially hit the reset button on most aspects and the base is ready for a refreshed leadership team to take CAE to new heights. Key ingredients for our thesis to work include full Defence margin recovery, re-acceleration in Civil demand, and a positive CEO appointment.”
On Tuesday after the bell, CAE reported adjusted earnings per share of 47 cents, rising 27 per cent year-over-year and a penny above the Street’s forecast driven by results from its Defence business. That segment saw earnings before interest and taxes jumping 105 per cent from the previous year, topping the consensus projection by 24 per cent.
“Defence margins have quickly improved to 7.5 per cent from 4-5 per cent a year ago and are heading toward 8.5 per cent this fiscal year, boosting our confidence in CAE’s 10-per-cent-plus target, which could potentially be achieved within two years (we conservatively assume three years),” said Mr. Gupta. “While new contracts have been improving the mix, we believe CAE has completed three out of the eight legacy contracts and optimized operations under COO Nick Leontidis. Most or all of the remaining five legacy contracts should roll off within 2-3 years, which along with existing and new contracts should bring margins back to 10 per cent plus. End-market backdrop is also positive with an upward push in global defense spending as CAE’s backlog is at a record high of more than $11-billion, excluding $7-billion in active bids/proposals pipeline.”
Also seeing its leverage normalizing with “stronger” free cash flow conversion, the analyst raised his target for CAE shares to $42 from $40. The average is $40.33.
Elsewhere, other analysts making target adjustments include:
* Canaccord Genuity’s Matthew Lee to $38.50 from $40 with a “hold” rating.
“CAE reported Q4 March quarter results [Tuesday] with revenue and SOI largely in line with estimates,” said Mr. Lee. “Our key takeaway from the quarter was the firm’s conservative F26 guidance, which suggests high single-digit SOI growth at the consolidated level, including the contribution from its SIMCOM acquisition. In our view, management has prudently considered US airline uncertainty within its outlook, particularly on simulator deliveries which are expected to decline year-over-year. On the Defence side, CAE continues to make progress on its legacy contracts with three of its remaining five expected to be completed by the end of F26. We would expect to see continued improvement for both segments this year, with further tailwinds over the medium term.”
* TD Cowen’s Tim James to $40 from $39 with a “buy” rating.
“Despite slightly lower than consensus F2026 guide, we are encouraged by Defence margin progress and resiliency in Civil business implied by guide for mid-to-high single-digit adj EBIT growth (TD Cowen: 8.6 per cent),” he said. “We believe slightly lower valuation entry point required to compensate investors for civil headwinds and remaining Defence execution risk.”
* CIBC’s Kevin Chiang to $38 from $39 with a “neutral” rating.
“CAE’s stock is down [Wednesday] post its Q4/F25 release despite better-than-expected quarterly results,” he said. “We attribute this to CAE’s softer outlook on its Civil segment relative to Street expectations. That said, we view CAE’s outlook as being prudent given the macro uncertainty while its long-term outlook remains intact. We have adjusted our estimates to reflect CAE’s F2026 guidance.”
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Ahead of the May 29 release of its first-quarter fiscal 2026 results, National Bank Financial analyst Cameron Doerksen thinks much of the tariff risk for BRP Inc. (DOO-T) has been alleviated given its units are USMCA compliant, however he warns “risk remains of a change in U.S. policy in the future (a USMCA reopening is widely anticipated).”
However, he warns a bigger obstacle for the Valcourt, Que.-based recreational vehicle manufacturer is a “still challenged” consumer market.
“Discretionary spending on items such as powersports vehicles was already under pressure before the most recent tariff-driven economic uncertainty, but the outlook has arguably worsened lately (although the recent U.S.-China trade détente may be a boost to consumer confidence),” said Mr. Doerksen. “BRP’s closest peer and competitor, Polaris, reported that in calendar Q1, its North American retail sales were down 7 per cent with off-road retail down 11 per cent year-over-year (with utility ORV down high-single digits and recreational down high teens percentage).
“Recall that BRP reported that its network inventory was down 13 per cent year-over-year at the end of its fiscal Q4 and as of February down 18 per cent. We believe BRP’s dealer inventory de-stocking is mostly complete, but the company will nevertheless have to contend with competitor pricing actions and promotions as they play catch up in reducing dealer network inventory.”
While the analyst said he remains “comfortable” with his first-quarter forecast, including earnings per share of 28 cents that falls 13 cents below the consensus on the Street, he made “minor” reductions for the remainder of the year. He also trimmed his expectations for the next fiscal year (2027) to reflect an “expectation for a more modest recovery in revenue and margins (stressing that we still forecast revenue and earnings well below what BRP was reporting prior to the current market downturn).”
“BRP deferred providing any F2026 guidance when reporting its Q4/25 results in March and given a still highly uncertain market, we do not expect the company to implement guidance with the Q1/26 report,” he said. “We do expect management to provide an update on the estimated tariff impact. Recall that as of late March, based on tariffs in place at the time, the additional cost impact for BRP was modest at $40 million. With the recent lowering of China tariffs, this estimate may come down, although BRP’s direct exposure to China tariffs is relatively minor.”
Believing its valuation now reflects a “weak” market, Mr. Doerksen cut his target for BRP shares to $61 from $65 to reflect his new projections, keeping a “sector perform” rating. The average target is $64.29.
"On our updated F2026 estimates, which we consider to be trough-like, BRP shares are trading at 7.1 times EV/EBITDA and 16.2 times P/E versus the historical (10-year) forward averages of 7.8 times and 14.3 times, respectively (five-year averages of 7.2 times EV/EBITDA and 13.2 times on P/E),“ he said. ”Typically, one should expect a cyclical stock such as BRP to trade at a higher than average multiple on trough earnings, but on EV/EBITDA, BRP trades at a discount to its historical averages on trough earnings. In our view, the current share price more than reflects the current challenging market conditions, although uncertainty over tariffs is likely to persist as a valuation drag."
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TD Cowen analyst Derek Lessard predicts “more meaningful cost savings" should start for Boyd Group Services Inc. (BYD-T) in the second quarter, positioning it “well” to reaching its 14-per-cent margin target by the end of 2026 as well as “valuation expansion irrespective of the timing of an eventual turnaround in claims volume.”
Shares of the Winnipeg-based company rose 3.6 per cent following the premarket release of its first-quarter financial results, including revenue of $778.3-milion, down 1 per cent year-over-year and below the consensus forecast of $795.3-million. Adjusted EBITDA was 1.5 per cent lower at $80.5-million, exceeding the Street’s expectation of $79.3-million, while earnings per share of 10 cents fell 4 cents short of expectations.
While the results were mixed, Mr. Lessard thinks the positive reaction reflects “improved investor confidence from 1) the sequential recovery in underlying SSSG, and 2) strong margin improvement.”
“After adjusting for the impact of one less production day year-over-year, Q1/25 SSSG [same-store sales growth] was down 1.2 per cent (vs. down 2.8 per cent reported), a meaningful improvement from down 2.6 per cent in Q4/24 and in line with management expectations,” he explained. “BYD continues to execute well on what they can control, focusing on improving the capture rate on claims volume. This allowed the company to continue to gain market share despite ongoing consumer weakness (due to elevated insurance premiums and economic uncertainty) pressuring demand. Thus far in early-Q2, BYD sees SSSG trending similarly to Q1. There is nothing incrementally negative about the operating environment, and management highlights early signs of positive industry trends (further moderation in insurance premium inflation, and rising used car pricing).
“Strong margin improvement, with further expansion expected over the coming quarters. Q1 gross margin expanded by an impressive 140 basis points year-over-year, or 40 basis points quarter-over-quarter driven largely by the internalization of scanning/calibration services (from 40 per cent in Q4 to 60 per cent in Q1). Looking ahead, BYD fully rolled out an indirect staffing model in early April, which is expected to result in $30-million annual run-rate cost savings. Over the rest of 2025 and into 2026, management looks to capture another $40-million in annual cost savings targeting both the gross margin and opex ratio, from improving indirect procurement (e.g., shop supplies/ equipment) and paint/parts/labour margins. Overall, management expressed confidence in achieving its adj. EBITDA margin target of 13 per cent in the near-term (i.e., 2026), and 14 per cent through 2029.”
Mr. Lessard said the quarterly report did not change his positive long-term outlook for Boyd and the industry or business fundamentals. However, he trimmed his 2025-2026 revenue and EBITDA estimates by 4 per cent “to reflect more conservatism given the difficulty in predicting the timing of a return in consumer sentiment.”
That led him to lower his target for Boyd shares to $280 from $290, keeping a “buy” rating. The average is $265.23.
Other analysts making adjustments include:
* ATB Capital Markets’ Chris Murray to $290 from $295 with an “outperform” rating.
“While management confirmed that same-store trends have remained in-line with Q1 levels in Q2 on a days-adjusted basis, we expect easing comps in H2/25 and moderating headwinds to support a recovery in the same-store trend in H2/25 with early benefits from Project 360 and gross margin lift from increased scanning and calibration penetration supportive of the margin outlook,” said Mr. Murray. “Despite softer levels of M&A in 2025, management reaffirmed expectations for stronger unit growth going forward. While the expected recovery in SSS looks to be shifting slightly, we continue to see value in the shares at current levels, with growth rates and margins expected to normalize in H2/25.”
* National Bank’s Zachary Evershed to $245 from $260 with an “outperform” rating.
"On lower top-line estimates as we push the positive inflection in SSSG to the right in our model, partially offset at the Adj. EBITDA level by stronger gross margin assumptions and improving visibility on the $70 million in annualized cost savings, our target falls to $245 (was $260) on an unchanged 11 times 2026 estimated EV/EBITDA, equivalent to a 4.5-per-cent FCF yield and replicated in our DCF using an 11.8-per-cent discount rate. Though the recovery in claims volumes is stubbornly slow, we remain bullish on the roll-up runway and margin improvement opportunities, and we reiterate our Outperform rating," said Mr. Evershed.
* CIBC’s Krista Friesen to $249 from $278 with an “outperformer” rating.
"While BYD reported a solid Q1 with EBITDA and margin modestly above our and Street expectations, we couldn’t help but be somewhat disappointed that thus far in Q2 BYD is seeing SSSG similar to that of Q1 (ddwn 1.2 per cent on a day-adjusted basis). With Q2/24 being the quarter that SSSG turned negative, we had hoped that by virtue of lapping that comp, the company would be seeing positive SSSG," she said.
* Stifel’s Daryl Young to $255 from $265 with a “buy” rating.
“Q1/25 was a slight beat (on relatively muted expectations), while the outlook for Q2/25 remains sluggish as industry-wide collision claims have yet to rebound,” said Mr. Young. “Thus far in Q2, Boyd’s SSS are trending down 1-3 per cent, setting up for the fourth consecutive quarter of negative results (recall during the ’08/’09 financial crises Boyd had five down quarters for SSS). Positively, management expects to see sequentially higher margins and EBITDA dollars in Q2 as the benefits of cost savings initiatives begin to materialize (but with more meaningful benefits of Project 360 getting underway in H2/25 and beyond). Additionally, Boyd is optimistic that moderating insurance pricing and increasing used car prices will be supportive for demand. Big picture, Boyd continues to take market share, rationalize its cost base/operating model and build shop density to capitalize on the inevitable turn. However, a stabilization of claims activity is required to drive meaningful operating leverage.”
* RBC’s Sabahat Khan to $270 from $277 with an “outperform” rating.
"Boyd reported mixed Q1 results vs. consensus estimates, with the key highlights being that SSS trends Q2 to-date are tracking in line with Q1 thus far (down low single-digits percentage), but Adjusted EBITDA margin/dollars are expected to meaningfully improve in Q2 and beyond,“ he said. ”Overall, we continue to believe that Boyd should return to positive SSS growth in 2025 as comps get easier through H2, with potential upside if the operating backdrop improves."
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Desjardins Securities analyst Chris MacCulloch thinks it’s too early to determine the impact of recent oil price weakness on Freehold Royalties Ltd.‘s (FRU-T) royalty volumes, however he expects both heightened macro uncertainty and limited near-term catalysts to remain a headwind for the stock.
“On the [first-quarter] conference call, FRU highlighted that it does not anticipate a material slowdown in operator activity across its U.S. acreage, despite recent oil price softness,” he said. “Specifically, management cited counterparty strength from the likes of Exxon Mobil and ConocoPhillips, which have stayed the course on Permian growth plans as they retain the ability to deliver positive returns at subUS$40/bbl WTI prices. By extension, we have largely maintained our U.S. production forecast until we have better visibility on activity levels. Meanwhile, soft 1Q25 Canadian liquids production stemming in part from limited M&A activity led us to trim our 2025 corporate forecast to 16,400 boe/d (from 16,500 boe/d).
“Otherwise, we highlight that FRU’s recent focus on stateside growth through M&A appears poised to slow as it stretches toward the upper end of its targeted 60–80-per-cent payout range (at approximately 78 per cent) based on current strip prices. On that note, we see limited capacity for the company to pursue meaningful buybacks in the absence of a larger retooling of the dividend, although we like the signalling and flexibility provided by the introduction of an NCIB. Either way, we remain cautious on the stock given limited near-term catalysts and heightened uncertainty on US drilling programs, which could be a headwind for future production growth. Only time will tell."
After reducing his 2026 cash flow expectations in response to its quarterly results, Mr. MacCulloch cut his target for Freehold shares to $14 from $14.25, keeping a “hold” rating to reflect limited potential return. The average is $15.79.
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In other analyst actions:
* In a report titled As Turbines Go Up, So Does Our Rating, Scotia Capital’s Robert Hope upgraded Northland Power Inc. (NPI-T) to “sector outperform” from “sector perform” and increased his target by $1 to $26. The average on the Street is
“It was a weak quarter operationally, as expected, given the low offshore wind resource,” said Mr. Hope. “More importantly, Northland’s large offshore wind projects, Hai Long and Baltic Power, remain on budget and on schedule. Our prior cautious view on the shares was largely a function of the execution risk of these two large offshore wind projects. However, we are incrementally more positive on the shares given the progress of these projects, including what we view to be the achievement of key milestones. The first turbines being installed at Hai Long gives us greater confidence in first power later this year. Baltic Power’s foundation progress also gives us additional confidence. Our target price moves up to $26 from $25 largely to reflect smaller changes to our model. We continue to view our 9.3 times target EV / 2027E EBITDA multiple as conservative with additional upside as the projects are further de-risked. At current levels of 8.0 times EV/2027E EBITDA (versus its 5-year forward average of 11.5 times and 10-year average of 12.7 times), we believe that Northland’s shares are overly discounting these large projects. As additional key milestones are reached and Hai Long generates first power, we expect the shares to continue to move higher.”
* Believing its “strong” Managed and IP Solutions (MIPS) bookings reinforcing its long-term trajectory, Canaccord Genuity’s Max Ingram raised Pivotree Inc. (PVT-X) to “speculative buy” from “hold” with a $1.75 target, rising from $1.50. The average is $2.08.
“Pivotree reported Q1 results that beat on the top and bottom lines as cost reduction efforts continue to take hold,“ said Mr. Ingram. ”While management acknowledged early signs of tariffrelated impacts in customer conversations, exposure appears limited to a small number of clients in specific end markets—namely, seasonal retailers with offshore manufacturing and tighter inventory turns. An internal review identified 10 customers with meaningful tariff exposure, though only 2–3 present material risk, and just one has signalled a project delay. Other markets, particularly industrial manufacturing, have remained resilient. We highlight that the MIPS bookings trend remains positive, growing 85 per cent year-over-year, which is supportive of growth through F2026 and F2027. We note the roll-off of LMS (legacy) revenues continues as expected and will decline at a sharper rate following the divestiture of the WMS business earlier this month. While MIPS and PS revenue growth has lagged our expectations in recent quarters, we see a path to a return to growth for both segments in H2/25."
* Canaccord Genuity’s Luke Hannan raised his target for AutoCanada Inc. (ACQ-T) to $24 from $22 with a “buy” rating. The average on the Street is
”Despite a strong finish to Q1/25, and a solid start to Q2/25, AutoCanada is remaining cautious on the outlook for the balance of the year, expecting consumer sentiment to weaken as the impact of tariffs take hold,“ said Mr. Hannan. ”With that said, the company has ample offsets from continued execution of its opex savings plan, the planned sale of its U.S. business, and lower floorplan costs, thanks to fewer vehicles on hand and lower central bank rates. We are mindful of concerns around the health of the consumer yet remain optimistic that ACQ is on track for a meaningful re-rating."
* In a note titled Poised for Momentum!, National Bank’s Dan Payne increased his target for Birchcliff Energy Ltd. (BIR-T) to $8.50 from $8 with an “outperform” rating. The average is $7.65.
"The company has perfectly stewarded the business through the trough and is ideally positioned to maximize shareholder value with its refined business model that offers high leverage to the commodity backdrop through the outlook,“ said Mr. Payne. ”BIR is poised for a 15-per-cent return profile (vs. peers 19 per cent) on leverage of 0.6 times (vs. peers 0.4 times), while trading at 3.8 times 2025e EV/DACF (vs. peers 4.1 times)."
* National Bank’s Rupert Merer trimmed his Boralex Inc. (BLX-T) target by $1 to $42 with an “outperform” rating, while CIBC’s Mark Jarvi moved his target to $39 from $40 with an “outperformer” rating. The average is $38.80.
“With $504-million of available liquidity as of Q1, BLX is well funded for its organic developments for the next 12-18 months, but should it want to take on more ambitious growth plans, it has options,” said Mr. Merer. “Liquidity could come in the form of asset recycling, where BLX is actively looking to sell down its hydro assets (which we believe should fetch over $400-milion). With an adj. net debt to EBITDA ~6x, BLX has room to increase its leverage towards its 7.5 times threshold. ITCs can further support its Canadian growth plans.”
* RBC’s Paul Treiber cut his Calian Group Ltd. (CGY-T) target to $58 from $60 with an “outperform” rating. Other changes include: Desjardins Securities’ Benoit Poirier to $61 from $82 with a “buy” rating, CIBC’s Scott Fletcher to $50 from $62 with an “outperformer” rating and Canaccord Genuity’s Doug Taylor to $60 from $75 with a “buy” rating. The average is $68.57.
“Q2 was well below expectations, as Calian’s ITCS [IT & Cyber Solutions] segment was impacted by short-term procurement delays at the Canadian Federal government and U.S. commercial customers,” Mr. Treiber said. “Given ITCS uncertainty, Calian withdrew FY25 guidance, given low visibility to ITCS revenue in the short-term. Maintain Outperform, given valuation at trough levels, Calian’s track record of compounding capital, and the likelihood of a growth rebound due to increased defence spending.”
* RBC’s Sabahat Khan hiked his Finning International Inc. (FTT-T) target to $61 from $49. The average is $53.88.
“Finning reported Q1 results that were above consensus expectations and provided directionally positive outlook commentary, underpinned by a record backlog exiting Q1 and strong trends within Product Support. Overall, Finning is navigating the uncertain macro/tariff backdrop well, and we believe the company remains well-positioned looking ahead,” said Mr. Khan.
* National Bank’s Matt Kornack increased his Flagship Communities REIT (MHC.UN-T) target to US$21.75 from US$20 with an “outperform” rating. Other changes include: Raymond James’ Brad Sturges to US$21.50 from US$20.75 with a “strong buy” rating, CIBC’s Dean Wilkinson to US$22 from US$20 with an “outperformer” rating, Scotia’s Himanshu Gupta to US$22 from US$20 with a “sector outperform” rating and RBC’s Jimmy Shan to US$21 from US$20 with an “outperform” recommendation. The average is US$20.93.
"After beating us handily for a few quarters, Q1 earnings were a tad light vs. us although in line with consensus. Revenues were in line but costs were higher as margins contracted (management noted some one-time items impacted the quarter),“ said Mr. Kornack. ”We are not worried about this variance, as baked in lot rent growth will drive margin improvement over the balance of 2025. Ops were actually a bit stronger than expected with occupancy up 90 basis points sequentially and rents up 8 per cent. During the quarter MHC refinanced some shorter term acquisition debt they took out to complete their portfolio expansion in 2024, now they have almost 10 years of term (no near-term exposure to interest rates). Positive bias sustained here as the stock remains deeply discounted notwithstanding some better trading of late, still a lot of runway to move higher."
* In response to better-than-expected first-quarter results, National Bank’s Zachary Evershed raised his target for KP Tissue Inc. (KPT-T) by $1 to $9.50 with a “sector perform” rating,. Other changes include: CIBC’s Hamir Patel to $9.50 from $8.50 with a “neutral” rating, TD Cowen’s Sean Steuart to $9 from $8 with a “hold” rating and Desjardins Securities’ Frederic Tremblay to $9.50 from $8.50 with a “hold” rating. The average is $8.38.
"1Q results and the 2Q outlook exceeded expectations, with the impact of tariffs being more limited than initially feared. In our view, KP can maintain a leading position in Canada while further developing its US business. Management sees solid demand in the North American market and continues to evaluate a potential capacity increase. Our main concerns are related to input cost volatility (including pulp) and potential headwinds in the away-from-home channel amid uncertain economic conditions," said Mr. Tremblay.
* RBC’s Michael Harvey raised his Peyto Exploration & Development Corp. (PEY-T) to $21 from $18 with a “sector perform” rating, while Desjardins Securities’ Chris MacCulloch bumped his target to $18.50 from $18 with a “hold” rating. The average is $20.61.
"We were impressed by the company’s operational execution, punctuated by the first material reduction in debt levels since the Repsol Canada transaction,“ said Mr. MacCulloch. ”While acknowledging the attractive 6.9-per-cent dividend yield, we remain cautious on the stock in view of elevated debt levels and the growing premium vs its Canadian natural gas–weighted peers following an extended period of outperformance."
* Canaccord Genuity’s Yuri Lynk increased his target for Stantec Inc. (STN-T) to $150, exceeding the $142.82 average, from $138 with a “buy” rating.
"We are reiterating our BUY rating on Stantec and increasing our one-year target price to $150.00 from $138.00 following impressive Q1/2025 results and management reiterating its 2025 outlook. Given the solid start to the year, including record backlog and good progress on margin improvement, we are increasing our target valuation multiple to 17 times from 16 tims, which we continue to apply to our 2026 EBITDA estimate (after rents), less our Q4/2025 net debt estimate," said Mr. Lynk.
* Mr. Lynk also raised his Terravest Industries Inc. (TVK-T) target to $200 from $170 with a “buy” rating. Other changes include: Scotia’s Jonathan Goldman to $176 from $171 with a “sector outperform” rating and Desjardins Securities’ Gary to $175 from $172 also with a “buy” rating. The average is $177.
"TVK reported impressive 2Q results, a notable recovery vs the 1Q miss,“ said Mr. Ho. ”However, investors should evaluate TVK through a multi-year lens (our valuation is based on our FY27 estimates) when EnTrans has been fully integrated, TVK reaps the synergies from the AEPL, LBT and Tankcon subsidiaries, and the recent US$589-million DoD contract win fully ramps up. We raised our FY27 forecasts, leading to a modest bump in our target."
* Desjardins Securities’ Benoit Poirier trimmed his Titanium Transportation Group Inc. (TTNM-T) target to $3 from $3.25 with a “buy” rating. Other changes include: Raymond James’ Steve Hansen to $2.75 from $3.25 with a “strong buy” rating and Canaccord Genuity’s Yuri Zoreda to $2.25 from $2.75 with a “buy” recommendation. The average is $2.94.
“Following management’s comments, 1Q results and a reduction in TT [Truck Transportation] segment capacity due to the strategic realignment, we adjusted our forward-looking mix assumptions, raising expected growth in Logistics and lowering it in TT,” Mr. Poirier said. “We also slightly reduced our margin estimates—TTNM expects Logistics margins to improve through year-end while not reaching 9 per cent due to persistent pricing headwinds. We support the asset-light pivot given inflation-driven operating costs and weaker returns on capital invested in equipment."
* National Bank’s Don DeMarco increased his target for shares of Wesdome Gold Mines Ltd. (WDO-T) to $28 from $26.75, keeping an “outperform” rating. The average is $20.86.