Inside the Market’s roundup of some of today’s key analyst actions
TD Cowen analyst Aaron Bilkoski thinks Shell plc’s (SHEL-N) $22-billion deal to acquire ARC Resources Ltd. (ARX-T) “fairly values” the Canadian company under his current commodity price outlook.
While he acknowledges the possibility of competing offers, he seems other bids as “a low probability event,” leading him to move his rating for ARC shares to “sell” from “hold” previously.
“The implied acquisition price of $32.80 equates to transaction metrics of 5.6 times 2027 estimated EV/DACF [enterprise value to debt-adjusted cash flow] or a 10-per-cent 2027 sustaining FCF [free cash flow] yield,” he explained. “The takeout metrics are roughly in line with the average of midcap E&P peers (average 10-per-cent 2027E FCF yield on a sustaining basis) and modesty above the average of the more oil-weighted Canadian large-cap and integrated producers (average 11-per-cent 2027 FCF yield on a sustaining basis).
“Could there be any competing offers? Possible, but unlikely at a material premium, In Our View: ARX offers a strategically important position within the basin as Canada’s largest C5+ producer. In our view, the C5+ supply/demand balance will become increasingly tight with incremental new oil egress pipelines. It is possible another offer emerges; however, given the $22-billion EV, the list of potential buyers is short. At the takeout valuation, it would be a challenge for domestic E&Ps [i.e., Whitecap (WCP-T) or Canadian Natural Resources (CNQT)] to make a superior offer that would be accretive to their current valuations, in our view.”
Mr. Bilkoski moved his target for Arc shares to $32.80 from $32 to reflect the offer. The average target on the Street is $28.60, according to LSEG data.
“ARC offers 40-per-cent liquids exposure, a quality asset portfolio, a sustainable base dividend, the ability to meaningfully reduce share count, and low financial leverage,” he added.
Elsewhere, others making rating adjustments include:
* ATB Cormark’s Patrick O’Rourke to “tender” from “outperform” with a $31 target.
“Overall, we view the event as positive, and given the clear synergies with SHEL’s integrated natural gas business and strong value realization relative to prior PDP + Risked Upside intrinsic value NAV of $36.37/sh (90 per cent), we are updating our rating to Tender (from Outperform). The ARX Board has unanimously approved the transaction and recommends that ARX shareholders vote in favor at a special meeting expected to be held in July,” he said.
* BMO’s Randy Ollenberger to “market perform” from “outperform” with a $32 target, rising from $30.
“Another high-quality Canadian company is set to disappear with Shell plc’s offer to acquire ARC Resources for roughly $22 billion,” he said. “The implied transaction metrics screen better than recent Montney deals; however, we believe Shell is getting a good deal given ARX’s size/scale and high-quality asset base.
“The transaction also appears to imply that Shell-operated LNG Canada Phase 2 could proceed, which could support a re-rating of other gas-weighted companies. We downgrade ARX to Market Perform but increase our target price to $32.”
* Canaccord Genuity’s Mike Mueller to “hold” from “buy” with a $32 target, up from $31.
Seeing industry pricing discipline having improved recently and expecting “positive news over the next few months on capex and non-core asset sales,” TD Cowen analyst Vince Valentini raised his rating Telus Corp. (T-T) to “buy” from “hold” previously.
“Subsequent to recent weakness in the share price, our intention had been to wait to see Q1 results on May 8 (unchanged estimates) before considering an upgrade, but we see too many positives on three fronts to wait,” he explained.
Those three factors are:
* Pricing discipline
Analyst: “We have seen notable improvements in April from all three incumbent wireless carriers on both website offers and in store discounts. We have also seen TELUS and Rogers attempt to push front book wireline internet prices higher in western Canada. The telcos in Canada seem to have heard the negative message from analysts and investors regarding price wars, so that we have seen a quick pivot back to much healthier pricing levels.”
* Potential capex reductions
Analyst: “In the wake of meaningful capex guidance reductions at Rogers we have received many questions from investors about what TELUS could do on this front. While TELUS already has the lowest capital intensity (C/I) ratio in the industry, we believe the incoming CEO could find ways to take C/I even lower in the future.”
* Potential non-core asset sales
Analyst: “We already have some asset sales in our model ($1.5-billion by the end of 2026), and we believe management is already active on many files including Agriculture (TAC), real estate, copper, the venture portfolio, and a minority interest in Healthcare. We believe it is possible that the new CEO will go even further down that path, so that TELUS could end up monetizing roughly 2 times the amount we have in our model. Perhaps portions of TELUS Digital could be divested, and potentially a larger percentage of Healthcare, and maybe even more infrastructure monetization (obviously TELUS has already completed what we view as a good wireless tower monetization in 2025). There would surely be EBITDA lost with some of these divestitures (so we will have to opine on EV/EBITDA and FCF implications after we see what they sell and what multiples they achieve), but we believe investors would generally welcome a more focused strategy with fewer balls in the air.”
Mr. Valentini raised his target for Telus shares by $1 to $20. The average is $20.59.
“TELUS’ yield remains attractive when compared to other Canadian options, although we recognize there are some execution risks that could potentially lead to a reduction in dividend payments. Our current forecast anticipates a 30-per-cent dividend cut in 2027, which would substantially lower the payout ratio to well below 100 per cent,” he said. “The sale of non-core assets should further support improvements in leverage and enhance the quality of the payout ratio. TELUS has nearly finished its capital-intensive transition from copper to fiber across its network, which is expected to drive cost savings by retiring its legacy copper infrastructure. The new FTTH network should also contribute to lower churn, increased market share, and higher ARPU, while reducing capital expenditures. We are upgrading the stock to BUY as we see sufficient upside to the share price owing to better price discipline and increased confidence in our forecasts.”
In a client report on his Diversified Financials coverage universe titled Reshuffling the Deck with Sharpened Focus on Risk-Reward, Scotia Capital analyst Phil Hardie downgraded Goeasy Ltd. (GSY-T), Propel Holdings Inc. (PRL-T) and Trisura Group Ltd. (TSU-T) to “sector perform” from “sector outperform” previously.
“We are ‘shuffling’ the deck with several ratings downgrades with a sharpened focus on risk-reward and dialing back exposure to smaller cap companies under our coverage,” he said. “We think recent market dislocations and some emerging investor concerns have re-set the relative risk-reward and risk-adjusted returns across our coverage with a bias to toward the mid-cap and large cap names. Controversy and elevated write‑offs at goeasy, combined with concerns related to the resilience of lower-income subprime borrowers have likely highlighted risks and tempered sentiment toward alternative lenders. We believe this has also contributed to a broader re-set in risk tolerance for financial services investors. Additional affordability pressures on lower income households stemming from the rise in energy prices and continued trade and disruption uncertainties are likely to heighten investor focus on ‘risk-reward’. The time horizon for risk appetite to revert remains unclear, and we are dialing back our exposure to small cap companies under our coverage with 3 downgrades.”
Mr. Hardie’s targets for the three are:
* Goeasy to $39, down from $55. Average: $43.50.
Analyst: “While valuation screens as depressed, investor sentiment remains unforgiving amid lingering uncertainty and what we view as stacked risks. Visibility and confidence in the earnings outlook are low, and until underlying trends stabilize we expect the disparity between stock price and company’s fundamental and intrinsic value to persist. For the stock to re‑rate investors will need clearer evidence across several fronts and given lingering challenges, the time horizon to see these catalysts materialize remains uncertain."
* Propel to $27, from $35. Average: $30.50.
Analyst: “Recent credit trends driving investor caution while investor sentiment has also turned tepid. We expect this to limit near term multiple expansion. While Propel has multiple long‑term growth avenues, 2026 is likely to be a transitional year. Recent result have been mixed and a more challenging backdrop for subprime borrowers lead us to see a less attractive risk‑reward at current levels."
* Trisura at $52 (unchanged). Average: $59.
Analyst: “Risk-reward looks more balanced following rebound. The shares have recovered from their Q1/25 lows, driven by solid growth in book value and multiple expansion. However, street expectations for 2026 and 2027 have trended down for much of the past year. Looking ahead, the operating backdrop is expected to become more challenging, particularly as pricing softens in parts of the commercial market amid a more bifurcated environment. With limited near term catalysts on the horizon and a one-year expected return falling below our sector average we see more compelling risk-adjusted opportunities elsewhere across our coverage."
Following a first-quarter earnings beat from TFI International Inc. (TFII-T), National Bank Financial analyst Cameron Doerksen says he’s “increasingly optimistic that the trucking rebound can accelerate in 2027,″ emphasizing “more optimistic outlook commentary.”
“Although high energy prices have injected some uncertainty around the broader economy and an ultimate recovery in freight demand, regulatory policy changes and the reported data continue to point to a rationalization in trucking capacity in both the U.S. and Canada, which is driving a pricing recovery for the industry that we believe is still in the early stages,” he said in a client note. “A more fulsome rebound in freight demand, particularly industrial freight to which TFII is more exposed, would also accelerate the profitability improvement for the company.”
After the bell on Monday, the Montreal-based company reported quarterly revenue of $1.949-billion, exceeding both Mr. Doerksen’s $1.833-billion estimate and the consensus projection of $1.886-billion. Adjusted earnings per share of 69 cents also topped expectations (60 cents and 61 cents, respectively).
TFI also released second-quarter guidance that topped forecasts, including EPS of $1.50 to $1.60 (versus $1.33 and $1.30). He noted the company is “not ready to commit to a full-year guide due to uncertainty around trade and the pace of industry pricing recovery.”
“Management noted that LTL [less-than truckload] shipments improved as the quarter progressed (LTL shipments down 10 per cent year-over-year in January, but up 8 per cent year-over-year in March, which has continued in April),” the analyst said. “Management also noted that in its U.S. flatbed operations it is renewing contract rates in the high-single to low double-digit percentages. Finally, management is optimistic about its truck moving businesses within the Logistics segment as truck OEMs are planning higher production rates as the year progresses plus TFII has recently signed a new customer.”
After raising his full-year forecast to reflect the results and guidance, Mr. Doerksen hiked his target for TFI shares to a Street high of $208 from $190 with an “outperform” rating. The average is $164.13.
“TFII shares are up 33 per cent so far in 2026 (DJ Trucking index up 40 per cent year-to-date while the S&P TSX is up 7 per cent year-to-date) and are arguably already pricing in some of the growing optimism in the trucking industry,” he said. “However, with earnings improvement set to accelerate in the coming quarters, we believe positive momentum for the stock will continue. Based on our updated 2027 estimates (which reflects ongoing margin improvement across all segments), TFII shares are trading at 19.5 tImes P/E, which is a discount to the weighted average peer group at 24.2 times, but a premium to TFII’s 5-year forward average of 15.0 times. Based on 2027 EV/EBITDA, TFII is trading at 10.0 times, which is a discount to the weighted average peers at 10.8 times but in line with the stock’s 5-year forward average of 9.8 times.”
Elsewhere, other analysts making target revisions include:
* Desjardins Securities’ Benoit Poirier to $221 from $183 with a “buy” rating.
“While TFII is up 33 per cent year-to-date (vs 7 per cent S&P/TSX), supporting our transportation top pick thesis, its 1Q results highlight why we see further upside,” said Mr. Poirier. “We view TFII as a compelling way to gain exposure to a tightening flatbed led trucking market, as it is one of few publicly traded carriers with meaningful specialized exposure and is highly leveraged to the industrial economy (80 per cent of revenue). This also allows time for the U.S. LTL business to improve and for M&A opportunities to unfold.”
* Citi’s Ariel Rosa to US$163 from US$144 with a “buy” rating.
“CEO Alain Bedard noted ‘light at the end of the tunnel’ in freight demand, with ’26 a ‘transition year’ from challenging ’23-’25,” said Mr. Rosa. “TFII continues to anticipate medium-term adjusted operating ratio for LTL at 80-85 per cent with U.S. LTL service improving to the ‘gold standard’ levels achieved in its Canadian LTL. It expects Truckload OR at 82-86 per cent with rates improving and TFI focused on niche, higher-margin end markets. We remain constructive on TFII with macro support and self-help initiatives both showing progress.”
* Stifel’s J. Bruce Chan to US$136 from US$117 with a “hold” rating.
“Like other transports that have reported thus far, 1Q26 marked a messy quarter for TFI, given abnormal winter weather to start the year. But also like other transports, the company is seeing signs of more material supply-driven tightness in transportation supply — particularly in the truckload division. U.S. contracts are renewing in high-single to low-double digit ranges, which is a very healthy starting point with industrial green shoots layered on top, in our view. That backdrop is encouraging for LTL, too, but there’s still more to fix in the latter business as TFI works to correct its service, pricing, and density. An interesting consideration for investors is that TFI conducts arguably more cross-border business than any of its peers, and there could be healthy upside from both continuing firming in industrial end markets, as well as a solidified USMCA trade regime. We are increasing our 2026 and 2027 adj. EPS estimates from $4.70 and $6.47 to $5.10 and $6.80, respectively, and remain Hold rated," said Mr. Chan.
* RBC’s Walter Spracklin to US$158 from US$137 with an “outperform” rating.
“With two quarters in a row of results beating (albeit lowered) expectations (Q1/26 EPS of $0.69 vs street $0.61), TFII has followed now with a quarter forward guide that (for the first time) is above expectations ($1.50 to $1.60 guide vs. street $1.31). While the stock has been on a run (up 40% from March lows), we believe there was still some trepidation around a conservative guide - and the stock still remains cheap relative to peers (at a P/E of 20.2 times 2027 vs LTL (31 times) and TL (24 times) peers). We continue to see that discount contracting,” said Mr. Spracklin.
Scotia Capital analyst Jonathan Goldman warns the first quarter is typically the seasonally weakest of the year for Finning International Inc. (FTT-T), and investors should expect the release on May 11 to “be noisy.”
“Fundamentals are probably better than they have ever been so we would be buying on any volatility,” he added. “We are below consensus, likely due to 1) higher LTIP expense, which we torqued up given 1Q share price appreciation of approximately 5 per cent; and 2) two outliers, which are inflating consensus EPS of $1.03 by $0.04/share.”
In a client note titled Eight Reasons To Double-Down on Finning, Mr. Goldman laid out why investors should be intrigued by the Vancouver-based Caterpillar dealer. They include the emergence of a product support cycle, which could lead Product Support segment to “surprise to the upside,” and “favourable” commodity fundamentals with higher WTI prices acting as a “tailwind at the margin.
The analyst also pointed to the benefits of momentum in “nation-building” projects, opportunities in Argentina and data centre growth, increased operating leverage “supported by cost reduction initiatives,” a reduction in capital spending plans and “room for multiple expansion.”
“FTT shares trade at a 7.8-times discount to TIH despite having the same EPS growth forecast of 12-per-cent CAGR [compound annual growth rate] through 2027,” he noted.
Maintaining his “sector outperform” rating for Finning shares, Mr. Goldman raised his target to a Street high of $109 from $105. The average is currently $103.20.
In a separate report titled We Didn’t Start the Fire, Mr. Goldman predicts first-quarter results and forward guidance for his Diversified Industrials coverage universe could be “a mixed bag with weather disruptions earlier in the year, impact of higher oil prices on demand and input costs/margins, and revised S232 tariff rules.”
“However, we view those factors as mostly one-time or immaterial, with most of our coverage relatively untouched by S232 changes (with a couple of notable exceptions),” he said. “The big risk is if oil prices stay higher for longer leading to a broad economic slowdown. That’s not our base case (Kalshi/Polymarket recession odds at 26 per cent) and recent feedback from our companies and other SGBM analysts is that end-market demand both on the industrial and consumer side has remained relatively resilient.
“Nothing is obviously mispriced across our universe (except BYD, NFI, WSP), but there are lots of favourable end-market trends and/or company-specific catalysts to support positive earnings surprises/revisions. On balance, we see more alpha opportunities across our coverage than we have in a while.”
Mr. Goldman made a group of target adjustments in the report. They are:
- Adentra Inc. (ADEN-T, “sector outperform”) to $45 from $46. The average is $49.26.
- ATS Corp. (ATS-T, “sector outperform”) to $51 from $48. Average: $49.21.
- NFI Group Inc. (NFI-T, “sector outperform”) to $24.50 from $22. Average: $23.63.
- Stella-Jones Inc. (SJ-T, “sector outperform”) to $97 from $99. Average: $99.22.
- Wajax Corp. (WJX-T, “sector perform”) to $38 from $34. Average: $35.
“Top ideas 1Q. Longs: LNR, MGA, RUS, WJX. For LNR/MGA, SAAR has been surprisingly resilient supported by wealthy consumers. Internal initiatives should enhance operating leverage while recent capital allocation (M&A, divestitures, buybacks) should enhance earnings growth. For RUS, steel prices have increased week-over-week since late October through to April and mill lead times are extended. A rising steel price environment supports inventory holding gains. For WJX, the Street is underestimating operating leverage following recent efforts to reduce the cost base.
“Shorts: ADEN, ATRL, SJ. Downside risk arises mostly from inconsistent consensus estimates. For ADEN, we think the Street is using the wrong compare for SG&A. Notably, the Street took down 1Q EBITDA estimates by $8-million post-4Q results but reduced full-year EBITDA by only $5-million. Did the housing market get better? For ATRL, guidance calls for 19% of full-year EBITDA in 1Q, which implies $225-million in 1Q based on full-year consensus, or 7 per cent below current 1Q estimates. For SJ, we believe the Street is not factoring in FX, slower recovery in Ties, and lower Residential Lumber prices. Granted SJ shares are down 10 per cent in the past four weeks as the market might be pricing in a miss. We would buy all three on any weakness after the print.”
Ahead of earnings season for Canadian engineering and construction companies, TD Cowen analyst Michael Tupholme reaffirmed “buy” ratings for stocks in his coverage universe with its estimates largely falling in line with the consensus expectations on the Street.
“AtkinsRéalis Group Inc. remains our top pick, with potential H2/26 nuclear catalyst,” he said. “We have raised target multiples for Aecon Group Inc. and Bird Construction Inc. on higher valuations and re-rating potential. For Stantec Inc. and WSP Global Inc., we are constructive on 2026 fundamentals (org. growth, margin gains), though it remains unclear when the AI overhang will ease.”
“Our target prices for ARE and BDT have increased (driven by higher target multiples), reflecting higher valuations and what we see as a continued near-term re-rating opportunity. Our WSP target price has declined very slightly (fine-tuned forecast), while our ATRL and STN targets are unchanged. All targets imply strong upside potential. Our Q1/26 EBITDA estimates are broadly in line with consensus.”
His new targets are:
* Aecon Group Inc. (ARE-T) to $59 (Street high) from $49. The average is $46.19.
* Bird Construction Inc. (BDT-T) to $63 (Street high) from $44. Average: $48.14.
Analyst: “Construction Names Set-up: We do not expect meaningful earnings revisions coming out of Q1/26; rather, we see potential for results and commentary to provide proof points for our constructive theses on ARE and BDT. For BDT, focus will be on management reiterating expectations for organic growth re-acceleration in Q2/26 and continued margin improvement in 2026. For ARE, key focus areas include progress toward substantial completion on the Gordie Howe Bridge project, execution on western Canadian civil projects, and underlying growth. Post Q1/26, we expect investor focus for both companies to center on attractive end-market exposures (nuclear, power, data centers, defense) and margin improvement opportunities, all seen supporting gradual re-rating.”
* WSP Global Inc. (WSP-T) to $307 from $308. Average: $314.38.
His targets for AtkinsRéalis (ATRL-T) and Stantec (STN-T) remain $127 and $158, respectively. The averages are $118.71 and $163.38.
“Engineering Services Names Set-up: We do not expect Q1/26 results to act as a meaningful catalyst for STN or WSP (for either earnings revisions or re-rating), as there have been no material changes across key end-markets or geographies (minimal impact from the Middle East conflict) since Q4/25 results, in our view. AI overhang creates an attractive entry point, as we view AI as a net positive for engineering services companies, though visibility on when this overhang abates remains limited. For WSP, Q1/26 is expected to be a slower start due to fewer billable days; however, we expect FY2026 organic growth to accelerate vs. last year, supported by a solid demand backdrop and record backlog. For ATRL, focus will be on ESR segment organic growth (we forecast +5 per cent year-over-year for Q1/26), and commentary on CANDU newbuild opportunities and M&A.
“ATRL remains our top pick (H2/26 nuclear re-rating story). Near-term, we favor BDT and ARE over WSP and STN on what we see as a more favorable re-rating backdrop for construction names.”
RBC Dominion Securities analyst Bart Dziarski sees Fiera Capital Corp.’s (FSZ-T) three-year strategic plan under new CEO Maxime Menard “focused on specialized distribution, improving performance, growing Private Markets, streamlining costs, and capital allocation is in its early days which presents execution risk”
“75 per cent of FCF earmarked for de-leveraging & NCIB constrains investing for growth,” he added. “We have a neutral view of Fiera’s Private Markets business given each strategy is sub-scale and are cautious on Fiera’s Public Markets business given persistent outflows and recent performance.”
Seeing its valuation as “fair,” he initiated coverage of the Montreal-based firm with a “sector perform” rating and $6 target. The average is $6.65.
“This is below Fiera’s longterm average which we believe fairly reflects our cautious view on its Public Markets business and neutral view on its Private Markets business,” noted Mr. Dziarski.
In other analyst actions:
* Citing “increased confidence in the long-term viability of the company’s North Vancouver chlor-alkali facility,” Raymond James’ Steve Hansen upgraded Chemtrade Logistics Income Fund (CHE.UN-T) to “outperform” from “market perform” with a $21 target, up from $15 and above the $18.32 average.
“While the recent rezoning setback was clearly unexpected, discussions with local stakeholders point to several credible pathways to a resolution—including political, regulatory, and operational alternatives. To this end, we view the risk of a forced shutdown as low. That said, visibility on timing of any resolution remains limited," said Mr. Hansen.
* Ahead of its earnings release on Thursday, Stifel’s Daryl Young reduced his target for shares of Air Canada (AC-T) to $25.50 from $28 with a “buy” rating. The average target is $23.65.
“We expect Q1 results to be relatively strong, despite challenges related to severe winter storms, Cuba fuel crises, Mexico safety disruptions, and the Middle East conflict,” he said. “However, the key focus will be the durability of demand and pace of fuel price pass-through heading into the peak Q3 period (traditionally more than 40 per cent of EBITDA). Our sense is that demand has remained resilient (March airport passengers: up 3 per cent year-over-year), underpinned by ongoing themes around strength in premium, business, and long-haul international. Additionally, AC is uniquely positioned versus smaller Canadian peers given its scale, flexible fleet, and segmented offering. There have been marginal capacity reductions in recent weeks (here), but the landscape remains in growth mode (a watch item). We expect AC to lower its full-year 2026 guidance alongside Q1/26 results or possibly withdraw it altogether, in favour of quarter-to-quarter guidance pending fuel price stability.”
* Stifel’s Suthan Sukumar dropped his CGI Inc. (GIB.A-T) target to $128 from $160 with a “buy” rating. The average is $147.46.
“CGI is reporting FQ2 earnings pre-market on Wednesday. An elevated cost takeout environment should bode well for continued demand strength in managed services, while also helping clients free up capital for broader AI investment, benefiting end-to-end providers like CGI with an expanding pipeline of AI-readiness work and a steady stream of strategic AI partnerships to unlock greater enterprise AI adoption. Macro uncertainty remains the key factor given the conflict and tariff impacted end-markets, but recent industry results suggest more stability in the backdrop, bolstered by enduring strength in pockets like financial services and government. All in, we expect a solid print to reaffirm durability and a stronger growth trajectory over the year, vs. the market’s sustaining AI disruption fears. At a decade plus low valuation at 10x P/E, risk-reward looks appealing, particularly with more M&A upside potential ahead. Our target goes lower to $128/share on incremental sector-wide multiple compression,” he said.
* Desjardins Securities’ Brent Stadler raised his Emera Inc. (EMA-T) target to $70 from $69 with a “hold” rating. The average is $71.58.
“We are expecting a strong quarter for EMA on expectations for favourable weather across essentially all of EMA’s segments. As a result, we have increased our 1Q26E EPS to $1.34 (from $1.04) and are now 10 per cent ahead of consensus at $1.22 and the high on the Street. With the quarter, we expect colour on the closing of NMGC, commentary following the NSPI rate case approval and an update on the outlook in Florida,” said Mr. Stadler.
* In an earnings preview for power and utilities companies, Raymond James’ Theo Genzebu raised his targets for Emera Inc. (EMA-T, “outperform”) to $75.25 from $74.50, Fortis Inc. (FTS-T, “outperform”) to $80.50 from $78.50 and Hydro One Ltd. (H-T, “market perform”) to $58 from $57. The averages are $71.58, $77.54 and $56.07, respectively.
“1Q26 ended on a positive note for the Canadian utilities in our coverage, with Algonquin, Emera, Fortis, and Hydro One all realizing solid share price performance for the quarter and YTD (5 per cent and 6 per cent on average, respectively), slightly outpacing the broader index on the quarter (S&P/TSX up 3 per cent and 7 per cent, respectively),” said Mr. Genzebu. “Further, we believe that the utilities’ share price performance within our coverage continues to hold up well vs. other rate-sensitive/cyclical names during this inflationary environment. A continued theme carried over from 2025, AI/data center demand remains intact and its needs for power consumption and the grid infrastructure that it requires will continue to grow although the rate of which is still debated. We believe the main question for investors now is the speed at which regulated utilities can implement their capital investments, while balancing rate payer affordability, and whether large load customers will be obligated to bring their own power. We continue to believe the utilities within our coverage are poised to benefit from this long-term tailwind, but remain tempered by short-term hurdles.”
* Prior to the release of its first-quarter results on May 13, RBC’s Ryland Conrad trimmed his High Liner Foods Inc. (HLF-T) to $16 from $17 with a “sector perform” rating. The average is $16.50.
“In our 2025 initiation ‘Strong Hull, Stormy Horizon’, we acknowledged that while High Liner was not immune to industry headwinds, management continues to execute on strategic initiatives (distribution expansion, innovation, logical M&A etc.) to support sales volumes and seafood consumption has runway for growth as consumers prioritize protein. That being said, against the backdrop of still low consumer sentiment, the current operating environment is exceptionally challenging with tariffs and inflationary headwinds putting downward pressure on seafood consumption and/or margins in the near-term. As such, we remain on the sidelines and look for greater visibility on potential catalysts,” said Mr. Conrad.
* Coming off research restriction following the close of its $115-million bought deal equity financing, which included lead orders from EdgePoint Investment Group and Eric Sprott, National Bank’s Rabi Nizami trimmed his target for shares of New Found Gold Corp. (NFG-X) to $4.75 from $5, keeping an “outperform” rating. The average target is $6.
“We expect NFG to use proceeds from the equity financing and [$105-million credit facility from EdgePoint] towards continued advancement of both the Hammerdown and Queensway gold projects, while also pursuing infill and aggressive exploration campaigns in search of new discoveries across the portfolio,” he said.
* Scotia’s John Zamparo hiked his Restaurant Brands International Inc. (QSR-N, QSR-T) target to US$81 from US$71 with a “sector perform” rating. The average is US$83.
" We raise SSS [same-store sales] estimates on strong data for BK and what we expect will be resilience at Tim Hortons despite early‑quarter weather headwinds. Since Investor Day, RBI shares are up 13 per cent, which we attribute to improving BK sales and investor day incremental positives (capital returns, deleveraging, 13-per-cent-plus TSR target, RH wind‑down, BK ad fund extension). We remain somewhat cautious given what we view as aggressive unit growth targets amid macro, geopolitical, and consumer pressures. We believe further upside will require clearer evidence of sustained growth and continued simplification through the year," said Mr. Zamparo.
* After reducing his fourth-quarter estimates for Stingray Group Inc. (RAY-T), National Bank’s Adam Shine lowered his target for the Montreal-based streaming media company’s shares to $20, matching the average, from $21, maintaining an “outperform” rating.
“Macro dynamics might have played a role to impact some ad segments in recent months, but it’s more likely that marketers shifted dollars in relation to the Winter Olympics while harvesting some spend for the World Cup,” he said.
“We made more conservative growth adjustments to our forecast which appeared to be sitting too much above consensus as we retrenched our 4QE.”