Inside the Market’s roundup of some of today’s key analyst actions
Scotia Capital analyst Kevin Krishnaratne is “more neutral” on the IT services sector after a “challenging 2025, when related stocks came under significant pressure due to macro uncertainty that slowed discretionary consulting projects, enterprise artificial intelligence (AI) adoption trends, and initial Department of Government Efficiency (DOGE) concerns.”
In a client report released before the bell, he assumed coverage of CGI Inc. (GIB.A-T), Kyndryl Holdings Inc. (KD-N) and Alithya Group Inc. (ALYA-T), warning “more meaningful signs of a recovery in discretionary IT spending trends will likely be require” before stock multiples rebound.
“Recent commentary and quarterly results from leading IT services and consulting firms, such as Accenture plc (Accenture), suggest ‘more of the same’ when it comes to discretionary spending (in its most recent Form 10-Q for the period ended November 2025, Accenture noted that the pace and level of client spending had slowed, particularly for smaller contracts with shorter duration),” he said.
“One area we are watching that could make us more constructive – and potentially lead to multiple expansion within the IT services space – is the prospect of enterprise AI adoption driving more meaningful upside to revenue growth. To date, enterprise AI adoption has been progressing slowly, with activity largely confined to early-stage experimentation and proof-of-concept pilots. While we recognize that IT services providers have enjoyed some related benefits in the form of ‘AI-readiness’ initiatives and consulting engagements, including enterprise resource planning (ERP) rollouts, cloud migration, and data structuring, which are all important precursors to more widespread implementations, our view is that it is still early for more meaningful AI revenue monetization opportunities."
Mr. Krishnaratne gave Montreal-based CGI Inc. (GIB.A-T) a “sector perform” recommendation with a $140 target, which falls under the average target on the Street of $176.50, according to LSEG data.
“Our neutral view on CGI mainly relates to the company’s exposure to discretionary IT spending (within the Consulting portion of its Systems Integration and Consulting [SI&C] business),”he said. “CGI’s SI&C segment has been posting book-to-bill ratios of less than 100 per cent over the past several quarters, contributing to softer top-line trends (flat to slightly negative organic growth) that we believe will persist through at least 1H/F26.”
For Alithya Group Inc. (ALYA-T), also based in Montreal, the analyst set a “sector outperform” rating with a $3 target, which falls a penny below the average.
“Our positive view on Alithya is driven by the company’s organic revenue growth strength of its U.S. business (double digits), which now accounts for 50 per cent of the business mix and is poised for continued momentum on the back of ERP and enterprise performance management (EPM) deployments from key software vendors Microsoft Corporation (Microsoft) and Oracle Corporation (Oracle),” he said.
Mr. Krishnaratne also gave New York-based Kyndryl Holdings Inc. (KD-N) a “sector outperform” recommendation with a US$40 target, exceeding the US$34.60 average.
“Unlike many of its IT services peers, Kyndryl’s revenue mix skews much more toward highly recurring and sticky Managed IT (approximately 80 per cent) with very little exposure to discretionary consulting revenue,” he said. “In fact, we think its Kyndryl Consult business (20 per cent) looks more like “professional services” related to winning Managed IT mandates. We are positive on the company’s gross profit growth strength (high single digits) and highly recurring mix of revenue, helping to achieve management’s ambitions of tripling free cash flow (FCF) by F2028 (from F2025)."
TD Cowen analyst David Kwan thinks CGI Inc. (GIB.A-T) is “poised to deliver stronger organic growth and margin improvements that should augment its strong FCF and balance sheet.”
“Consequently, we think the pickup in M&A activity could continue, particularly given the attractive M&A environment,” he added.
Assuming coverage of Montreal-based information technology consulting and software development company ahead of Wednesday’s release of its quarter results, Mr. Kwan is expecting 4-per-cent year-over-year revenue growth and flat margins. Pointing to “continued FX tailwinds,” he sees total revenue growth of 8 per cent year-over-year, driven primarily by its “elevated” M&A activity.
However, he did warn of a notable headwind from the U.S. Federal government shutdown.
“The shutdown lasted for almost half of the quarter, with CGI projecting a revenue impact of $60-million-$75-million and a margin impact of $15-million-$22-million on the Q4 call,” said Mr. Kwan. “We will look to get more colour on how quickly procurement cycles are returning to more normal levels.”
In a client note, the analyst emphasized TD Cowen’s 2026 IT Services Spending Survey “suggests an improving outlook.”
“The survey suggests improving optimism in 2026 for a recovery in IT Services spending,” he said. “The survey revealed that enterprise IT buyers expect stronger IT services spending in 2026, increasing 5.5 per cent year-over-year (150bps improvement vs 2025) through both volume and price increases. Accenture reported similar views on stabilizing demand in their Q1/F26 results, with 4.6-per-cent cc growth, while Infosys raised its F2026 growth guidance by 75bps to 3.0-3.5 per cent year-over-year cc. Meanwhile, technology and research advisory firm ISG is forecasting 2.1-per-cent managed services growth this year (vs. 1.3 per cent in 2025).
“Solid M&A activity could continue amidst weaker valuations. Recall from our TD Cowen Tech Conference note, we highlighted potential increased M&A opportunities for CGI, as valuations continue to decline and with less competition from PE firms. While we expect CGI to continue with its metro market acquisition strategy, its openness to larger, transformational deals could drive material upside to our forecasts. With its leverage expected to fall below 1 times and cash expected to surpass $1-billion exiting Q1/F26 and with its $1.5-billion credit facility unused, we think CGI is in a strong position to remain active on the M&A front.”
Mr. Kwan reaffirmed the firm’s “buy” rating and $145 target for CGI shares. The average on the Street is $176.50.
Ventum Capital Markets analyst Rob Goff sees “momentum building” for Calian Group Ltd. (CGY-T), believing “emerging military tailwinds offer sustaining growth.
On Monday, the Ottawa-based defence company revealed it is leading a $100-million investment, alongside government and other industry members, to build a network of labs across the country where military and industry can work together on the technologies needed to stay connected while operating in harsh Arctic environments.
The investment is being orchestrated by its newly created arm, Calian Ventures, which was established to help Canadian small- and medium-sized enterprises (SMEs) scale up and sell to the Canadian Armed Forces, and eventually, abroad.
“The VENTURE aims to speed up the build-out of Canadian-owned C5ISRT (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, Reconnaissance and Targeting) defense systems, as Canada prioritizes its defense and Arctic security,” said Mr. Goff. “The first step sees Calian developing a national “sea-to-sea-to-sea” network of regional development labs. The new VENTURE labs will look to test, prove, and scale new defense tech more quickly, with partners including SME enterprises, NATO, CAF, academia, and industry participants. The investments will take the form of R&D, cape, and minority interests.”
Maintaining his “buy” rating for Calian shares, Mr. Goff said he’s “confident” raising his target by $10 to $72, which is a high on the Street. The average is $65.50.
“The 26-per-cent share price gain over the past three months, coupled with better-than-expected Q4/F25 results and ongoing backlog growth suggests upside to our F2026 EBITDA,” he said. “We believe the strength and sustainability of opportunity for Calian from increased military spending domestically and across NATO remain discounted in current forecasts and valuations. We see upside to baseline forecasts while current valuations for C2027 and C2028 are approximately 13-19 per cent below five-year averages. With approximately $8 per share of EBITDA, CGY shares offer attractive revaluation leverage. While others may raise PTs similarly, we note the prior high PT at $70.00.”
“We expect 10-per-cent-plus revenue/EBITDA growth for F2026+ building momentum across the year and extending beyond. We see the F2026 10-per-cent year-over-year as a baseline with upside from new RFP wins and M&A (currently not in the forecast). We encourage investors to look further ahead as F2027 consensus reflects moderating growth inconsistent with macro trends and management’s longer-term growth objectives. With its prior quarter, management highlighted a strong acquisition pipeline, and its track record, alongside investor demand for greater military exposure, suggest the potential for EPS and valuation-accretive deals.”
Scotia Capital analyst Jonathan Goldman sees downside to production volumes for automobile manufacturers over the next 12 months, which he emphasizes are the “main determinant” of earnings for parts suppliers and could lead to lower profits year-over-year versus the Street’s expectations for gains.
“Tariffs have increased vehicle production costs estimated in the hundreds to thousands of dollars for 2026 models since they were built under the new tariff regime,” he said. “Thus far, OEMs have absorbed tariffs, but the costs could start getting passed on to consumers – or suppliers – on model year 2026 as OEMs look to others in the supply chain to bear the brunt of margin pressure. OEM margins are down more than 200 basis point in 2025 and are sitting at 2019 levels. Price increases could pressure demand in an already affordability-challenged market. OEMs could also manage channel inventory to support prices.”
In a client report, Mr. Goldman noted Ward’s Automotive is forecasting U.S. light vehicle sales of 16 million in 2026, down slightly from 16.2 million last year, however, it is also projected production to rise 1.8 per cent, which he said implies inventory restocking.
“Inventory days’ supply were sitting at 46 in December, at the same level at same time last year. That’s low by historical standards (66 days pre-COVID), but we see little incentive for OEMs to restock the channel,” he added. “So, if wholesale under-ships retail that implies downside risk to the LVP forecast. USMCA renegotiation is an overhang, but we think changes to the agreement will likely center on vehicle assembly rather than production.
“Do we ever get back to 17 million SAAR? U.S. SAAR [seasonally adjusted annualised rate] averaged 15 million between 2020-2024 vs. more than 17 million between 2015-2019 due to supply chain bottlenecks and higher prices. Recently, Cox Automotive suggested the U.S. market could only support 15-16 million units due to affordability challenges. For context, it takes 36 weeks of income to afford the average new vehicle. Even within the less than $40k category, consumers who would have purchased these cars have been pushed out of the market, either turning to used market or holding onto existing cars. Dealers said low-income customers are not simply ‘missing’ or taking a step back, but being excluded from the new market entirely: households making less than $75k represent 26 per cent of car sales today vs. 37 per cent in 2019; households making more than $150k represent 45 per cent vs. 30 per cent in 2019.”
Mr. Goldman noted shares of Linamar Corp. (LNR-T) and Magna International Inc. (MGA-N, MG-T) have risen 50 per cent and 30 per cent, respectively, and 75 per cent and 55 per cent since U.S. President’s Donald Trump’s “Liberation Day.” He attributes that performance to “multiple expansion in anticipation that the earnings will come in.”
“But, we’re not sure that that happens in 2026 – or even 2027,” he said. “Bulls will argue BBB cheques will be a tailwind to demand – or maybe consumers sock the money away given all the uncertainty (e.g., government shutdown impact on SNAP benefits). Rate cuts may embolden OEMs to maintain pricing. Also, n.b. that the industry is lapping tough comps following demand pull forward in 2025 when consumers rushed to dealer lots to get ahead of tariff increases and expiration of EV tax credits. SAAR hit its highest level since 2019. MGA shares are trading at 5.3 times EV/EBITDA on our 2026E, in-line with historicals while LNR is trading at 3.5 times, below historicals of 4.1 times. Vehicle affordability challenges could stretch the recovery beyond 2027.”
Maintaining “sector perform” ratings for both companies, Mr. Goldman raised his target for Linamar to $98 from $83 and Magna’s NYSE-listed shares to US$57 from US$52. The averages on the Street are $89.99 and US$54.85.
In a separate report, Mr. Goldman acknowledges his upgrade of Cascades Inc. (CAS-T) to a “sector outperform” recommendation last January was “an unlucky call” with shares of the Quebec-based packaging and tissue products company flat since then, featuring “plenty of volatility along the way.”
“While our original thesis for a February price increase played out, tariffs upended any positive industry/stock momentum,” he said. “That was compounded by the company’s decision to withhold guidance in 1Q25, effectively asking the market to impute the worst. But, the tariff impact ended up being more indirect with uncertainty pressuring end-market demand. Box shipments have recovered from June/July lows (lowest since 2016) while profound capacity rationalization sets the stage for another US$40 per tonne price increase in 1H26. For Cascades, every US$25/t increase in linerboard price translates to a $16-million increase in annualized EBITDA.”
“But the real upside is execution against profitability improvement initiatives, which are expected to improve annualized run-rate EBITDA by $100 million by the end of 2026, and asset divestitures totaling $120 million by June 2026.”
Mr. Goldman said price increases are likely “imminent” with RISI projecting a US$40-per-tonne price increase for 42-lb kraftliner in the 2Q26. He also said he’s “feeling ok” on volumes
“Capacity rationalizations alone should cause operating rates to climb to 94-95 per cent in 1H26, a threshold that typically allows producers to pass on cost inflation,” he said. “The range is also much higher than the 90-91-per-cent level that accompanied the price increases in 2024 and 2025. PKG-US [Packaging Corporation of America] announced the closure of its Wallula mill in December, which took total U.S. containerboard capacity reduction to 10 per cent vs. 2024.
“CAS went out with the first (and lone) industry price increase in December, which didn’t gain traction. While the increase was likely an attempt to get ahead of the spike in natural gas prices in late November/early December, we have to believe it signals at least some confidence in end-market demand. 4Q guidance calls for containerboard volumes down 5 per cent quarter-over-quarter (equates to down 6.7 per cent year-over-year); last call, management called out strong momentum in September spilling over into October and November. The National Retail Federation reported a 4.1-per-cent year-over-year increase in holiday sales at the high-end of the forecast range. Truck tonnage, a good indicator of CAS volumes (ρ = 0.90), was down 0.7 per cent year-over-year.”
Seeing a “large buffer/upside” from its improvement plan, the analyst raised his target for Cascades shares to $16 from $13.50, keeping his “sector outperform” rating. The average is $13.79.
“CAS shares trade at 5.6 times EV/EBITDA on our 2026 estimates, relatively in-line with historicals, but we estimate profitability improvements and remaining asset divestitures could be worth $1.50/share,” he said. “Valuation splits out to 3.4 times debt, 2.2 times equity, so deleveraging can accrue significant gains to equity holders. We forecast leverage declining to 2.9 times exiting 2026 from 3.6 times as at 3Q25.”
Seeing recent macroeconomic developments reducing “investor confidence in a robust capital markets recovery/strong realizations in 2026,” TD Cowen analyst Cherilyn Radbourne sees Brookfield Asset Management Ltd. (BAM-N, BAM-T) “offers important defensive characteristics versus peers.”
“BAM’s distributable earnings is 100-per-cent free-related earnings [FRE], with very minor exposure to capital markets/transaction-related revenue and no expectation of carry until 2030,” she said. “BAM’s real asset focus also tends to be less sensitive to the public markets, because real assets are usually highly contracted/regulated, which supports more durable valuations/liquidity through the cycle and much less reliance on IPOs as an exit vehicle.
“BAM expects record fundraising in 2025 and 2026. 2025 fundraising was largely driven by complementary strategies, but 2026 should benefit from first closes on three large flagship funds, all of which we see as potential catalysts. The inaugural AI fund should hold a first close in Q1/26, followed by the latest PE flagship in Q2/26, and the latest flagship infrastructure fund in H2/26, perhaps as early as Q3/26. Importantly, all these flagships become fee-generating immediately.”
In a client note previewing the Feb. 4 release of its fourth-quarter 2025 results, Ms. Radbourne revised her forecast to reflect higher market caps for the listed affiliates and new senior notes issuance, among other items. Her new DE estimate of 46 US cents is above consensus on the Street of 42 US cents, which she thinks “does not appear to properly include a BBU incentive fee.”
To “reflect peer multiple compression, partly offset by a one quarter roll-forward in our target price horizon to be fully based on 2027,” she trimmed her target for BAM’s U.S.-listed shares by US$1 to US$75, which remains the high on the Street, with a “buy” rating. The average target is US$63.80.
“BBU units are up 23 per cent since BBU [Brookfield Business Partners LP] announced plans to simplify its corporate structure by converting BBU/BBUC into one publicly traded Canadian corporation,” she added. “That unit-price appreciation triggered a significant incentive fee for BAM in Q4/25 (approximately $95-million). Investors will likely treat the Q4/25 fee as one-time, but if the combined BBU trades more in line with the growth of its business, smaller incentive fees from BBU should become a more regular contributor to BAM’s FRE.”
“BAM is a leading pure-play alternative asset manager in a market that is consolidating around the largest players. That consolidation is particularly evident in infrastructure, renewable power, and energy transition investing, verticals in which we believe the company has a significant first-mover advantage and dominant franchise. BAM has a simple-to-understand balance sheet, with no insurance liabilities, and offers a healthy dividend yield.”
While acknowledging regulatory headwinds and structural inefficiencies, Canaccord Genuity analyst Kenric Tyghe thinks the Canadian cannabis market remains “a global benchmark for legal cannabis commercialization, with long-term optionality tied to continued regulatory reform, consolidation, and international expansion.”
“While market dynamics (largely on a highly punitive tax structure) are challenging, Canada remains the only G7 country with a federal legal (October 2018) adult-use cannabis market, creating a unique regulatory sandbox for global investors,” he said.
In a client report released Tuesday, Mr. Tyghe initiated coverage of four companies in the sector:
* Aurora Cannabis Inc. (ACB-T) with a “buy” rating and Street-high $10 target. The average is $5.99.
Analyst: “Aurora Cannabis s a medical-first operator, the leading medical player in Canada, and a foremost player in the key international markets of Germany, Poland, Australia, and the UK. The path to becoming a leader in global medical cannabis was far from linear given the enormity of the reset required to get where the company is today and the complexity of the regulatory backdrop against which it was achieved. The pivot domestically supported international expansion into the high-margin international markets where gross margins are, on average, roughly 2.5 times those of Aurora’s (medically focused) Canadian business.”
* Cronos Group Inc. (CRON-T) with a “buy” rating and Street-high $4.25 target. Average: $3.16.
Analyst: “Cronos Group is a global cannabinoid company with a differentiated strategy focused on the building of disruptive intellectual property by advancing cannabis research, technology, and product development. While Canada and Israel are the company’s two largest markets today, we believe that its recent acquisition of CanAdelaar (the largest adult-use cannabis company in today’s medically focused European market) and the expansion of Cronos Growing Company (Cronos GrowCo), supported by the strength of Cronos’s balance sheet, represent the leading edge of a transformational change.”
* Organigram Global Inc. (OGI-T) with a “buy” rating and $3 target. Average: $3.62.
Analyst: “Organigram Global is accelerating its transition from a mid-tier LP to a vertically integrated global cannabis company, with market-leading positions in key categories in Canada, including the number one share in pre-rolls, concentrates, milled flower, and vapes (and top three in flower and gummies). The company, supported by the acquisition of Motif Labs on December 6, 2024, further extended its leading recreational market share in Canada to 11.9 per cent in F2025. Organigram’s growth, balance sheet flexibility, and competitive positioning since 2021 have materially benefitted from strategic investments by British American Tobacco plc (BATS-GB | Not Rated) totaling $345-million.”
* Tilray Brands Inc. (TLRY-T) with a “hold” rating and $13 target. Average: $13.21.
Analyst: “Tilray Brands is at the leading edge of the further expected convergence of beverage, cannabis, and wellness, supported by a diverse portfolio of innovative brands and products spanning both medical and lifestyle, positioning it as a leading global lifestyle consumer products company. Tilray is the largest cannabis company by revenue in Canada, the fourth largest craft (beer) brewer in the U.S., and has a compelling position in European pharma (distribution). Tilray is one of only three licensed manufacturers of medical cannabis in Germany (the largest and fastest growing cannabis (medical) program in Europe) through its Aphria RX subsidiary.”
In other analyst actions:
* In response to Monday’s announcement it has agreed to be acquired by Zijin Gold International in a friendly all-cash transaction valued at $5.5-billion, Canaccord Genuity’s Carey MacRury moved his rating for Allied Gold Corp. (AAUC-T) to “hold” from “buy” with a $44 target, down from $55. The average is $44.50.
“Under the agreement, Zijin will pay $44 per share in cash, representing a 5.4-per-cent premium to Friday’s closing price and a 27-per-cent premium over Allied’s 30-day volume-weighted average price (’VWAP’),” said Mr. MacRury. “Allied notes that the transaction is the culmination of a comprehensive strategic review process, which commenced in 2024 and we see the probability of an interloper coming in as low. Zijin Gold is a public company listed on the Hong Kong Stock Exchange and has a market cap of US$70-billion. We have lowered our target price to C$44/sh, in line with the transaction price, and accordingly, we are lowering our recommendation.”
* Seeing its operational and financial performance poised to benefit from improving domestic competitive conditions and pointing to a “path to long-term optionality which could build valuation support,” Barclays’ Lauren Bonham upgraded BCE Inc. (BCE-N, BCE-T) to “equal-weight” from “under-weight” with a US$26 target, rising from US$21. The average is US$27.20.
“The competitive environment continues to show positive momentum, but structural headwinds weigh on growth, and new growth and monetization opportunities rely on execution,” he said.
Ms. Bonham also increased her Rogers Communications Inc. (RCI-N, RCI.B-T) target by US$1 to US$36 with an “equal-weight” rating. The average is US$41.80.
* Citing concerns about its growth prospects, particularly in its crude oil segment, JP Morgan’s Jeremy Tonet downgraded Enbridge Inc. (ENB-T) to “neutral” from “overweight” and reduced his target to $69 from $74. The average is $69.37.
* After Canaccord Genuity lowered its oil price assumptions, equity analyst Mike Mueller lowered his ratings for Baytex Energy Corp. (BTE-T) to “hold” from “buy” with a $4.75 target, down from $5, and Gran Tierra Energy Inc. (GTE-T) to “hold” from “buy” with a $8 target (unchanged). The averages are $5.43 and $7.33, respectively.
“With the decrease in crude prices in our outlook, we believe our target multiples (2026E EV/DACF) of 3.6 times (BTE) and 4.3 times (GTE) reflect reasonable levels in the current tape,” said Mr. MacRury.
* Ventum Capital’s Rob Goff raised his Alithya Group Inc. (ALYA-T) target to $3 from $2.85 with a “buy” rating ahead of the release of its third-quarter 2026 financial results on Feb. 13. The average target is $3.03.
“While our forecasts are largely in line with consensus expectations, we believe even in line results take on importance as they highlight the strength of U.S. operations,” said Mr. Goff. “We feel the advancing weight of U.S. operations, now through 60 per cent of operating income, warrants a positive revaluation.
“We expect last quarter’s momentum to carry into the current quarter, with U.S. results remaining the core driver as demand for ERP and digital transition services gains traction. The Company’s premier positioning and dual strength with Oracle (ORCL-NYSE, Not Covered) and Microsoft (MSFT-NASDAQGS, Not Covered) drive demand and pricing leverage. We expect underlying trends in Canadian revenues to continue seeing improvement consistent with the past two quarters as we move into Q3/F26.”
* Introducing his 2027 estimates for AutoCanada Inc. (ACQ-T) following last week’s announcement of its acquisition of Modern Autobody, a single-location collision and refinish repair facility in Edmonton, Acumen Capital’s Trevor Reynolds raised his target for its shares to $39.25 from $35.50 with a “speculative buy” rating. The average is $32.20.
“Our focus over the near to medium term remains on ACQ’s ability to add back revenue while maintaining cost savings, growth of collision repair, and completion of the U.S. asset sales,” said Mr. Reynolds.
* Previewing the Feb. 18 release of its fourth-quarter results, RBC’s Douglas Miehm raised his Bausch + Lomb Corp. (BLCO-N, BLCO-T) target to US$21 from US$19, exceeding the US$17.36 average on the Street, with an “outperform” rating.
“We have raised our forecasts to reflect FX moves and stronger-than-expected IQVIA TRx trends. Our PT is revised from $19 to $21, reflecting: (1) the re-rating of key peers (ALC, COO); (2) increased probability of BLCO separation from 20 per cent to 30 per cent over the next 12 months, as improved profitability should support higher valuations if sold; and (3) our revised higher estimates,” said Mr. Miehm.
* Touting “an exciting exploration year ahead,” Paradigm Capital’s Don MacLean hiked his target for Erdene Resource Development Corp. (ERD-T), which he recently named his “top pick” for 2026, to $14.40 from $11, reaffirming a “speculative buy” rating.
“Erdene’s 50-per-cent-owned Bayan Khundii (BK) project in western Mongolia has progressed rapidly from discovery in 2015 to first production September 2025 and anticipated full production in H1/26. Mongolia’s largest internationally listed mining company, Mongolian Mining Corporation (MMC), was brought in as a 50-per-cent partner, construction lead and operating partner, a relationship we expect to open future growth opportunities for Erdene beyond the substantial exploration upside already evident from more the 20 high-priority targets. ERD also owns 100 per cent of the Khuvyn Khar license 35-km west of BK which hosts a large porphyry system, including the Zuun Mod moly-copper deposit and a nearby copper discovery announced in January 2026,” said Mr. MacLean, who is the lone analyst covering the Nova Scotia-based company.
* Ahead of the release of its fourth-quarter 2025 results on Feb. 25, TD Cowen’s Brian Morrison raised his Gildan Activewear Inc. (GIL-N, GIL-T) target to US$77 from US$74, keeping a “buy” rating. The average on the Street is US$76.05.
“With HaneBrands acquisition closed, focus should be on Gildan’s EPS growth outlook. Integration strategy details should improve investor confidence in its ability to drive innovation/market share and achieve synergy targets by integrating textile production to Gildan’s ‘low-cost facilities’. We view these, along with reiteration of 2028 guidance and noncore asset sales, as next catalysts,” said Mr. Morrison.