Inside the Market’s roundup of some of today’s key analyst actions
After an examination of its U.S. plans, Desjardins Securities analyst Jerome Dubreuil has changed his view on BCE Inc.’s (BCE-T) $5-billion acquisition of internet provider Ziply Fiber, leading him to upgrade his recommendation for its shares to a “buy” from “hold” previously.
“We now better appreciate the merits of Ziply,” he said. “We believe Ziply would have generated greater returns in the hands of a U.S. wireless operator for the same price. However, that does not mean the deal is de facto bad for BCE. Rather, we believe the deal solves BCE’s challenge to (1) deliver sustainable EBITDA growth from core competencies; (2) ensure the acquired business had sufficient scale to move the needle; (3) avoid putting its balance sheet at risk; and (4) keep investment requirements small enough to support a deleveraging plan that appeared credible to investors.”
“Sentiment shift as a catalyst. The market has thus far been skeptical of BCE’s U.S. plan, partly due to the deal’s complexity and high price tag. We anticipate that the closing of the deal will enable management to share more about Ziply, which we expect should help investors better appreciate the deal’s merits. A risk to our call is that BCE may reduce its 2025 FCF guidance when it reports 2Q earnings on August 7 as the initial fibre build outside the InfraCo footprint would require meaningful investment.”
In a client note released before the bell, Mr. Dubreuil estimates the Ziply deal will drive a 12-per-cent internal rate of return for BCE over the duration of the endeavour. Though the return is lower than management’s 20-per-cent objective, he thinks “the stock’s strong negative reaction to the Ziply announcement was in large part unwarranted.”
“Competing in FTTH deployment with well-capitalized, integrated players means that BCE’s success in the U.S. will have to rely on robust execution and discipline,” he said. “We would rather see BCE being inflexible on its FTTH deployment hurdle ROIC than on its homes-passed objective. The improving Canadian wireless landscape and BCE’s lower valuation relative to its peers vs the historical average also support a long thesis.”
Mr. Dubreuil raised his target for BCE shares by $1 to $40. The average target on the Street is $34.10, according to LSEG data.
“Stabilization in the Canadian telecom environment and an expected improvement in sentiment toward the Ziply deal lead us to recommend buying BCE shares,” he concluded.
Elsewhere, BMO’s Tim Casey resumed coverage with a “market perform” rating and $35 target, down from $51.
“We expect revenue will contract modestly in 2025 and 2026 on an organic basis before contributions from Ziply,” he said. “In 2026, we expect contributions from Ziply will generate 2-per-cent growth on a consolidated EBITDA basis but net earnings will decline on higher interest and D&A costs. We expect free cash flow will be relatively flat and leverage will remain elevated. Dividend payout ratios are manageable. We do not expect dividend growth.”
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Seeing further earnings upside after better-than-anticipated second-quarter results, Desjardins Securities analyst Brent Stadler says he continues to like the Fortis Inc. (FTS-T) story, believing “its diversification provides exposure to a number of exciting energy themes, including transmission growth, load growth (including data centres) and the broader energy transition.”
“It has a number of near-term catalysts and after its 12th straight quarterly earnings beat, coupled with the TEP [Tucson Electric Power] rate case, we believe FTS remains well-positioned for upward estimate revisions.
After raising his estimates through 2027, Mr. Stadler upgraded the St. John’s-based utility to “buy” from “hold” previously.
“We continue to believe FTS is in a number of exciting and attractive markets that should lead to significant growth as we move further into the energy expansion era,” he said. “Transmission opportunities at ITC, the load growth tailwind including data centres in Arizona, the potential to reduce regulatory lag in the region, and converting the 800MW Springerville coal to gas conversion to improve customer affordability and grid reliability by 2030 further shore up the capital plan. We expect FTS to provide an update to its capital plan in the fall and believe there is potential to increase the plan by $800-million.”
With the increases to his forecast, Mr. Stadler raised his target for Fortis shares to $76 from $71. The average is $69.50.
“FTS is in many top markets that will likely drive continued excitement as we move further into the energy expansion era,” he concluded.
Elsewhere, others making target adjustments include:
* Raymond James’ Theo Genzebu to $72 from $69 with an “outperform” rating.
“Our view on Fortis continues to be constructive as we balance long-term opportunities and current valuations,“ he said. ”We continue to believe that Fortis’ diversified NA footprint, solid 6-plus-per-cent- rate base growth, improving credit metrics and growth upside stemming from exposure to durable investment themes (like the retail load growth opportunities from large load customers in Arizona) all bode well for the company. We reaffirm our Outperforming rating and increase our target price ... due to an increased assumed target multiple as the company executes its capital plan and improves its credit outlook.“
* TD Cowen’s John Mould to $77 from $74 with a “buy” rating.
“FTS Q2/25 results were ahead of our forecasts and consensus. A finalized 300 MW data centre agreement in Arizona (pending approvals) with potential for an incremental 500-700 MW could add mid-term line-of-sight for additional demand from an attractive endcustomer (local media report it to be AWS),” said Mr. Mould.
* National Bank Financial analyst Patrick Kenny to $67 from $65 with a “sector perform” rating.
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RBC Dominion Securities analyst Ryland Conrad sees Gildan Activewear Inc. (GIL-N, GIL-T) “executing well across all facets of its business,” pointing to “product innovation supporting market share gains, manufacturing expansion in Bangladesh driving further cost efficiencies and a balanced growth algorithm underpinning a robust capital return framework.”
“With no loose threads across its operating model, we believe the company is well-positioned to deliver steady value creation,” he added.
In a client report released Tuesday before the bell, Mr. Conrad initiated coverage of the Montreal-based clothing manufacturer with an “outperform” recommendation, seeing it positioned to take market share “supported by multiple structural drivers” and believing its vertical integration is “an increasingly important competitive edge.”
“Management is guiding to mid-single digit revenue growth through 2027, reflecting market share gains (particularly in national accounts) supported by multiple structural drivers including: (i) new program wins against a narrowing competitive landscape (we estimate the exits of Delta and Fruit of the Loom to be a $470-million revenue opportunity); (ii) differentiated product innovation (Soft Cotton, Plasma Print); and (iii) the expansion of Comfort Colors and American Apparel with a long runway for growth in Fashion Basics,” said Mr. Conrad. “Acknowledging the still uncertain macro environment, our forecast sits at the conservative end of management’s three-year outlook. That said, we do see potential upside to our estimates with $600-million in excess manufacturing capacity, which if filled would translate to 15-per-cent EPS accretion versus our forecast.”
“Against the backdrop of a fluid U.S. trade environment and distributor consolidation in North America, we believe: (i) Gildan’s vertically integrated low-cost manufacturing model is an increasingly important competitive edge; and (ii) the ongoing development of a strategic ringspun hub in Bangladesh (expected to deliver a 25-per-cent cost reduction relative to Central America) will reinforce its cost leadership positioning. While not immune to U.S. tariffs, Gildan is well positioned to mitigate any impacts and nearshoring presents a potential volume opportunity in the near-term as retailers seek alternatives to Asia-based sourcing.
Also touting its “robust” capital return framework, the analyst sees Gildan’s current valuation as “undemanding” and set a target of US$61 for its shares. The average target on the Street is US$60.35, according to LSEG data.
“Gildan is currently trading at a FTM [forward 12-month] P/E of 13.6 times versus long-term and pre-pandemic averages of 15.5 times and 16.5 times, respectively,” he said. “With fundamentals expected to trend positively over the medium-term and potential for upside to our estimates, we see value in the shares at current levels with room for a positive re-rating.”
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BMO Nesbitt Burns analyst Thanos Moschopoulos raised his financial forecast for MDA Space Inc. (MDA-T) “significantly” following Friday’s announcement of its $1.8-billion contract with American telecommunications company EchoStar Corp. to build more than 100 5G satellites, which he thinks provides “visibility for sustained growth.”
“While the stock was up 18 per cent [on Friday] following the news, we see additional upside based on our view that 1) EchoStar is likely to exercise its options to double the initial contract size; and 2) the stock’s valuation doesn’t adequately reflect MDA’s strong competitive position in LEO (demonstrated, and reinforced, by this win), nor the potential for one or more of its three anchor LEO clients to continue scaling up their constellations to a far larger fleet over time,” he said in a client note.
Mr. Moschopoulos thinks the contract reinforces the Brampton, Ont.-based company’s “strong competitive position” in the low Earth orbit (LEO) satellite market, noting EchoStar represents the third operator that has chosen MDA’s Aurora digital payload LEO satellite for its constellation.
“MDA continues to have an active pipeline of additional constellation opportunities,” he said. “We believe it will be able to sustain a strong competitive position given that its (largely) standardized design should provide it with economies of scale, and given the strong industry credibility afforded by its three marquee clients.
“We believe EchoStar is likely to exercise its options to double the initial contract size (but aren’t yet modeling this). EchoStar refers to 200 satellites as representing the full initial configuration, and its ability to secure additional financing seems to be the key factor with respect to whether the options are exercised. EchoStar is in the process of exploring financing options, noting that it might have additional color to provide at the World Space Business Week conference in mid-September. Our model conservatively assumes that only the initial batch gets built.”
Maintaining his “outperform” rating, the analyst raised his target to $53 from $33. The average is $48.57.
Elsewhere, Scotia’s Konark Gupta upgraded MDA to “sector outperform” from “sector perform” with a $55 target, up from $39.
“Why are we changing our view after recently downgrading the stock? The reason is not just the significant financial benefits of this latest US$1.3-billion satellite contract (though it’s a big factor) but also the fact that this contract reduces our concerns about concentration risk, working capital volatility, and lumpiness in growth,” he said. “Moreover, management provided us with comfort that it is carefully managing risks in signing large contracts and that the $20-billion-plus opportunity pipeline remains intact. We now see potential for MDA to announce another large constellation order within the next 12 months, believing that the recent success should drive stronger customer engagement. Lastly, we are also gaining confidence that EBITDA margin can expand above 19-20 per cent beyond 2027 as MDA incrementally utilizes its expanded LEO capacity.”
Analysts making target changes include:
* RBC’s Ken Herbert to $53 from $42 with an “outperform” rating.
“The contract announcement provides backlog funding through 2028 and into 2029, a top factor for investor sentiment,” said Mr. Herbert. “Management hosted an analyst call at which point it outlined the near term revenue and FCF contract implications, with a 2H25 advance payment support working capital requirements. Management is confident in EchoStar’s funding and the contract risk management. The focus for investors is now turning to execution and the setup into 2026 on satellite capacity increases.”
* Desjardins Securities’ Benoit Poirier to $55 from $40 with a “buy” rating.
“We believe the bullish reaction to the EchoStar award is deserved as it (1) enhances growth visibility; (2) diversifies MDA’s customer base; (3) validates AURORA’s appeal; and (4) accelerates ongoing discussions,” said Mr. Poirier. “While headline risk remains (FCC, Musk, SATS financing), MDA is proving its ability to sustain 25-per-cent growth and 20-per-cent margins, positioning it as a compelling ‘rule of 40’ candidate. This creates strong reflexivity—as investor confidence grows and the multiple expands, MDA gains greater flexibility to pursue accretive acquisitions.”
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National Bank Financial’s Vishal Shreedhar is expecting to see accelerating earnings per share growth from Metro Inc. (MRU-T) when it reports its third-quarter financial results on Aug. 13 before the bell, touting “solid” food and drug trends.
The equity analyst is currently projecting earnings per share of $1.54, matching the consensus forecast on the Street and an increase of 19 cents from the same period in fiscal 2024. He sees food same-store sales growth rising to 3.5 per cent from 2.4 perc ent a year ago.
He attributes the 14-per-cent year-over-year earnings growth to “positive sssg (solid discount format performance, and strength at PJC), store network growth, slight gross margin expansion, slight operating leverage (reflects facility improvements and lower duplicate costs; recall that duplicate overhead costs peaked in Q2/F24 and Q3/F24), share repurchases, lower interest expense and a lower tax rate (tax holiday related to Terrebonne DC; EPS benefit of 3 cents).”
“Our forecast of positive food sssg reflects continued solid performance in discount as well as sequentially higher inflation,” said Mr. Shreedhar. “We expect basket to be higher and traffic to be stable. StatsCan data (until June 2025) suggests food store inflation was 3.0 per cent vs. 2.1 per cebt last quarter. Our projection of continued solid growth in pharmacy reflects elevated influenza trends, and organic growth, among other factors. Health and Personal Care retail sales (StatsCan data until May 2025) in Quebec accelerated to 6.7 per cent year-over-year from 5.5 per cent in Q2/F25. We expect Rx to continue to benefit from higher Rx count, specialty medications and professional services, among other factors.
“Our review of peer commentary suggests: (i) An acceleration in the Buy Canadian sentiment, (ii) A continued theme of consumers searching for value (elevated promo penetration, higher sales in discount vs. conventional, higher private label, among others) and (iii) Cautious commentary from retailers regarding inflationary pressure (tariffs, F/X, commodity input costs, etc.).”
Maintaining his “sector perform” recommendation for Metro shares, Mr. Shreedhar raised his target to $111 from $107 to reflect a change in his valuation period. The average target is currently $105.90.
“We believe MRU is a solid company which has delivered solid long-term returns over various economic cycles. However, our coverage presents investments which offer a better comparative investment proposition,” he concluded.
Elsewhere, BMO’s Tamy Chen raised her target to $115 from $110 with an “outperform” rating.
“Following the company’s DC modernization project, we believe there is potential for catch-up earnings growth over the next few years. We expect moderate acceleration in food inflation in 2025E vs. 2024, which would be a positive for the sector that we would play through MRU,” she said.
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While reaffirming his bullish view on CAE Inc. (CAE-T), National Bank Financial analyst Cameron Doerksen acknowledged the return on capital employed by its Civil segment has recently “underwhelmed.”
“Our positive view on CAE shares is based on strong end market demand in both the Civil and Defense segments that we expect will drive a multi-year period of revenue and earnings growth,” he said. “In addition, the company’s Defense segment margins inflected positively in F2025, and we expect will continue to trend higher in the coming years supported by higher global defence spending, including an expected surge in activity in Canada.
“However, one investor critique of CAE is that given the favourable end market dynamics and its market positioning as the largest provider of pilot training globally, returns on capital and free cash flow should be higher than what the company has generated in recent years.”
In a report released Tuesday, he examined the underperformance of its Civil training network, noting it generated pre-tax ROCEs in the 12-15-per-cent range prior to the pandemic but has since failed to reach that level.
“Despite end markets having fully recovered and the mix of simulators within the training network more favourable from a margin perspective (more business jet sims), in the last fiscal year, the ROCE was 10.8 per cent,” said Mr. Doerksen. “The primary explanation is that capital deployed in Civil has increased at a much faster pace than underlying profits. Indeed, from the end of F2018 to F2025, total capital within the Civil segment increased 181 per cent, while underlying segment EBIT only increased 79 per cent over that same period.”
Mr. Doerksen suggested several ways the Montreal-based company can improve returns, including non-core asset sales, gains from the maturation of its Flightscape software business and further cost rationalizations as well slow spending on network expansion.
“In addition to the deployment of a significant amount of capital towards M&A, CAE’s capex spend has consistently outstripped depreciation in recent years as it has grown its Civil training network,” he said. “In addition to adding to the capital base, new capacity can take years to fully mature to optimal utilization and margin levels. We believe the company can slow network additions and harvest the investments already made in the next several years. We estimate that a 2 pt. increase in utilization could drive $42-million in incremental revenue, $29 million in incremental EBIT and drive a 70 bps margin improvement over the same asset base.”
Ahead of its Aug. 12 quarterly release, in which he hopes to see insight on its priorities but doesn’t expect specific financial goals, Mr. Doerksen raised his target for CAE shares to $48 from $43 to relect an “increased optimism that margins and capital returns will improve” with an “outperform” rating. The average is $42.54.
“In early June, CAE announced the appointment of a new President and CEO, Matthew Bromberg, with an effective date of August 13. At the same time, Chairman Calin Rovinescu’s role was expanded to Executive Chairman. We believe one of the core mandates of the new leadership team is to drive increased shareholder value, and we therefore expect the company to focus on improving operational performance with an aim to increase margins, free cash flow and capital returns,” he concluded.
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Following the third quarter of its fiscal 2025 that saw a “significantly” improved operational performance, Citi analyst Ariel Rosa thinks TFI International Inc. (TFII-N, TFII-T) is “too cheap to ignore on FCF."
"TFI International appears to be recovering from challenges of the past several quarters, with a better-than-expected 490 basis points improvement in its U.S. LTL [less-than-truckload] adj. operating ratio from last quarter (94.0 per cent vs. our 96.5 per cent forecast). Nevertheless, this still represents a 320 basis points year-over-year deterioration, reflecting the weak freight environment and the progress that TFI still has to make in managing costs for weaker demand conditions.“
On July 28, the Montreal-based company reported second-quarter adjusted earnings per share of US$1.34, down 22 per cent year-over-year but above both Mr. Rosa’s US$1.26 estimate and the consensus forecast of US$1.23.
“The company showed operational improvement from 1Q across key segments but guided to a 3Q adj. EPS of $1.10-1.25, below prior Citi/cons. $1.38/$1.37 but likely conservative given it does not reflect continued improvement on furthering the self-help actions it took to deliver strong 2Q results,” he said. “
“The company noted that its 3Q adj. EPS guide was on normal sequential seasonal declines in margin and no change in the environment, while idiosyncratic drivers from mgmt.’s operational improvements should help offset. We are encouraged that TFII noted opportunities for further U.S. LTL operational improvement, including implementing Optym software for pickup & delivery as a next step after implementing it for linehaul, which has helped reduce rail linehaul to nearly 20 per cent from over 30 per cent four years ago. It has also hired new mgmt. to help improve its claims ratio, which at 0.7 per cent is already better than 0.9 per cent in 2Q but not yet at Canadian LTL’s 0.2 per cent (or best-in-class U.S. peers). It has been improving billing accuracy and lifting SMB mix, having reclaimed 2 per cent of the 3-per-cent lost on its improved service. It has improved its missed pickups from 4 per cent three years ago to 1 per cent in 2Q, aiming to reach Canadian LTL’s 0 per cent. TFII noted confidence returning from U.S. customers as the OBBBA could ‘revive’ industrials and housing.”
Given the results, Mr. Rosa lowered his earnings expectations through fiscal 2027 to reflect “sluggish” macroeconomic conditions, however he maintained a US$108 target and “buy” rating for TFI shares. The average is US$113.29.
“Despite these challenges, we view TFI as attractive given its strong FCF generation, as mgmt. said it plans to keep repurchasing shares as it ‘cannot find another opportunity this cheap,’” he concluded.
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In other analyst actions:
* Desjardins Securities’ Benoit Poirier trimmed his Aecon Group Inc. (ARE-T) target to $22 from $24 with a “buy” rating. Other changes include: TD Cowen’s Michael Tupholme to $23 from $22 with a “buy” rating and ATB Capital Markets’ Chris Murray to $28 from $30 with an “outperform” rating. The average is $22.73.
“While we were impressed by the sequential jump in the backlog (up 11 per cent to $10.7-billion) and the reduced exposure to problematic legacy projects (now comprise only 1 per cent of total backlog, with all three projects to be completed by end 2025), the greater exposure to less risky, non-fixed-price contracts (76 per cent of backlog vs 50 per cent a year ago) is likely to make it more difficult to expand construction EBITDA margin beyond 6.0–6.5 per cent in the immediate term,” Mr. Poirier said. “We have reduced our margin assumptions slightly but maintain our Buy rating.”
* Following a “solid” quarterly beat, Raymond James’ Steve Hansen hiked his Ag Growth International Inc. (AFN-T) target to $52 from $47 with an “outperform” rating, while TD Cowen’s Michael Tupholme moved his target to $57 from $55 with a “buy” rating. The average is $52.38.
“We are increasing our target on Ag Growth International (AGI) ... based upon the company’s: 1) solid 2Q25 print; 2) robust Commercial segment momentum; 3) deep (near-record) order book; 4) incipient signs of a Farm segment recovery; & 5) attractive valuation,” Mr. Hansen said.
* In response to “strong” second-quarter results, National Bank’s Patrick Kenny raised his AltaGas Ltd. (ALA-T) target by $1 to $45 with an “outperform” rating. Other changes include: Scotia’s Robert Hope to $46 from $45 with a “sector outperform” rating, ATB Capital Markets’ Nate Heywood to $43 from $42 with an “outperform” rating, RBC’s Maurice Choy to $44 from $43 with an “outperform” rating. The average target on the Street is $42.80.
“Despite AltaGas’ recent share price outperformance, we believe the company’s strategy, highly sought after portfolio, and management’s execution are resonating well with the market, particularly given the political alignment today to diversify Canada’s energy export markets and the relationships the company has in the industry,” said Mr. Choy. “Along with a core business that is performing well (as the Q2/25 Midstream volumes, Utilities rate base growth, and overall financial performance showed) and a sense that a sale of its stake in MVP is indeed near, we remain bullish on the stock.”
* Mr. Kenny also increased his Enbridge Inc. (ENB-T) target to $65 from $64 with a “sector perform” rating, while ATB Capital Markets’ Nate Heywood bumped his target to $67 from $66 with an “outperform” rating. The average is $66.20.
* Mr. Kenny increased his TransAlta Corp. (TA-T) target to $17 from $16 with an “outperform” rating, while ATB Capital Markets’ Nate Heywood raised his target to $20 from $18 with an “outperform” rating.. The average is $18.41.
* RBC’s Bart Dziarski raised his Brookfield Business Partners LP (BBU-N, BBU.UN-T) target to US$35 from US$33 with an “outperform” rating. Other changes include: Scotia’s Phil Hardie to US$30 from US$31 with a “sector outperform” rating and Desjardins Securities’ Gary Ho to US$34 from US$31 with a “buy” rating. The average is US$32.
“We believe BBU remains in the early stages of its next harvesting and deployment cycle while simultaneously continuing to deliver on its opportunistic unit/share buyback program,” Mr. Dziarski said.
* Mr. Dziarkski also raised his Fairfax Financial Holdings Ltd. (FFH-T) target to US$2,200 from US$2,050 with an “outperform” rating. The average is $2,888.49 (Canadian).
“Q2/25 Operating EPS was ahead of both our and consensus forecasts driven by investment gains (primarily Total Return Swaps),” he said. “Underwriting results were ahead of our expectations driven by a lower combined ratio and we believe worker’s comp (Zenith) is turning a corner after years of declining premiums. Balance sheet remains strong with $3B of cash and a 26-per-cent leverage ratio. We continue to believe FFH stock is overly discounted, trading at 1.4 times P/B.”
* Seeing it “firing on all cylinders,” National Bank’s Baltej Sidhu increased his Brookfield Renewable Partners L.P. (BEP-N, BEP.UN-T) target to US$32 from US$30, exceeding the US$29.57 average, with an “outperform” rating.
“BEP is uniquely positioned to capitalize as a provider of capital towards growing power demand, supported by its operational expertise, access to capital, appetite for scale and increasing push towards PE activities,” he said.
* Expecting “solid” results from Canadian Tire Corp. Ltd. (CTC.A-T) on Aug. 7, Desjardins Securities’ Chris Li raised his target to $195 from $175 with a “buy” rating. The average is $180.40.
“Despite a challenging environment, we expect 2Q results to reflect a resilient consumer as well as CTC’s key competitive advantages (Triangle loyalty, digital, enhanced data analytics, owned brands, product assortment, etc). We believe the solid share price performance and above-average valuation reflect this expectation. While earnings will likely remain volatile in the near term (market conditions and higher SG&A), successful execution of True North should drive attractive earnings growth over the longer term,” said Mr. Li.
* Mr. Li also increased his target for Montreal-based retailer Groupe Dynamite Inc. (GRGD-T) to $36 from $23 with a “buy” rating. The average is $29.35.
“We are increasing our 2Q SSSG forecast to 19 per cent from 14 per cent (vs 13 per cebt in 1Q) to reflect continuing successful execution of GRGD’s many growth initiatives (real estate optimization, product innovation, enhanced customer engagement through loyalty/digital, etc),” he said. “While the strong share price performance already reflects these positives, for long-term investors, we believe GRGD’s valuation (approximately 22 times forward P/E) is supported by low-double-digit EPS growth and a healthy balance sheet.”
* Stifel’s Ralph Profiti cut his Ero Copper Corp. (ERO-T) target to $26 from $29 with a “buy” rating, while Desjardins Securities’ Bryce Adams lowered his target tp $23 from $25 with a “hold” rating. The average is $25.89.
* RBC’s Paul Treiber hiked his Lumine Group Inc. (LMN-X) target to $62 from $53 with an “outperform” rating, while TD Cowen’s David Kwan moved his target to $59 from $55 with a “buy” rating. The average is $54.
“Lumine reported healthy Q2, with adj. EBITDA above RBC/consensus estimates. Q2 shows Lumine’s ability to transform acquired businesses, as organic growth rebounded to positive levels, while adj. EBITDA margins and free cashflow were solid. Recent acquisitions affirm Lumine’s capital deployment at high rates,” Mr. Treiber said.
* Mr. Treiber also increased his Topicus.com Inc. (TOI-X) target to $220 from $195 with an “outperform” rating, while TD Cowen’s David Kwan hiked his target to $209 from $198 with a “buy” rating The average is $202.
“Even though Topicus’s Q2 was slightly below RBC/consensus estimates, revenue growth reached a multi-year high, due to healthy organic growth and capital deployed on acquisitions,” Mr. Treiber said. “With a full quarter of the Cipal acquisition and Topicus’s 2nd investment in Asseco expected to close Q3, we see growth rising further. Maintain Outperform, given the likely continued compounding of capital at high rates.”
* Stifel’s Daryl Young raised his NFI Group Inc. (NFI-T) target to $23 from $22 with a “buy” rating. The average is $23.67.
“Q2/25 was somewhat of a kitchen sink quarter with a myriad of one-time charges related to ADL and the balance sheet restructuring, and FCF was negative (net debt increased),” he said. “However, we think management has now largely cleared the decks and we are encouraged by commentary on the operating front, with the supply chain effectively back to pre-COVID performance and seat supply is improving. We think this positions for a recovery to full production in 2026. To be clear, we fully expect hiccups as NFI ramps over the next few quarters (ramping-up and down always comes with margin pressures and supplier challenges) and we do still see some risk to guidance (its heavily Q4 weighted) but the ball seems to be mostly back in NFI’s court to execute. Tariff’s could throw some curveballs but with $327-million of liquidity, management is confident it can navigate,” said Mr. Young.
* Ahead of its Aug. 14 earnings release, National Bank’s Zachary Evershed trimmed his TerraVest Industries Inc. (TVK-T) target by $5 to $200 with an “outperform” rating after trimming his projections for its Compressed Gas business. The average is $188.
“With a long M&A runway, a stellar integration track record and a knack for extracting organic growth from historically low-growth industries, we rate TVK OP,” he added.