Inside the Market’s roundup of some of today’s key analyst actions
In response to a higher-than-expected 55-per-cent dividend cut, “light” second-quarter results and a guidance reduction that was steeper than the Street’s forecast, National Bank Financial analyst Adam Shine downgraded Telus Corp. (T-T) to a “sector perform” recommendation from “outperform” previously.
“While we welcome the belated reset of the dividend and pending reveal of more details of new management’s developing plan, we’re compelled to go to the sidelines as we digest the material disconnect between Telus’ old and new outlooks and await more steps to restore its credibility,” he said.
Shares of the Vancouver-based telecom plummeted 11.3 per cent on Friday after it dropped its quarterly dividend 18.75 cents per share from 41.84 cents previously, expecting the move to generate about $2.7-billion in cash savings through 2028.
Telus said it expects revenue for the year to be flat or fall up to 2 per cent, compared to prior guidance in May of a revenue increase of 2 to 4 per cent. The company said its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is now expected to fall by 2 to 4 per cent for the year, compared to prior guidance of growth of 2 to 4 per cent.
“We and others on the Street lowered 2026 revenues/EBITDA in 2Q previews below prior outlook which we thought would get revised with 2Q reporting, but the revision under Telus’ new CEO/CFO was disappointingly more than expected,” said Mr. Shine in a client note.
“Service Revs to be flat to down 2 per cent (was up 2-4 per cent) and Adj. EBITDA to fall negative 2 per cent to negative 4 per cent (was up 2-4 per cent) ‘reflecting lower revenue growth which no longer will offset non-recurring benefits realized in 2025, including real estate gains, acquisition-related adjustments, and favourable one-time expense reductions’ - represent 2 points headwind in 2026 which was generally known but didn’t seem to be an issue for prior guidance. Capex $2.6-billion (was $2.3-billion) with several factors noted including inflation, supply chain dynamics, and spending on sovereign AI data centres. FCF $1.8-billion (was $2.45-billion). Undisclosed growth is to return next year, with FCF CAGR [compound annual growth rate] of at least 10 per cent projected 2026-2028.”
With a reduction to his forecast to reflect the revised guidance as well as change to his valuation timeline, Mr. Shine cut his target for Telus shares to $15 from $19. The average target on the Street is $15.98, according to LSEG data.
Elsewhere, other analysts downgraded Telus include:
* RBC’s Drew McReynolds to “sector perform” from “outperform” with a $15 target, down $20.
“We got it wrong,” said Mr. McReynolds. “While some pieces of our ‘post-accelerated FTTH build FCF inflection point’ thesis have played out, we clearly got other pieces wrong as this ‘finish line’ continues to be pushed out. Specifically: (i) since 2022, $5-$6/share in NAV degradation from TELUS Digital and TELUS Health has occurred; (ii) other initiatives have not scaled to have a material financial impact; (iii) average annual restructuring charges of $600-million since 2023 have kept annual FCF generation stuck in the $1.8-billion- $2.2-billion range; (iv) the DRIP discount became overly punitive given the high cost of equity; and (v) most surprising to us, the 2026 adjusted EBITDA growth outlook for TTech was lowered to negative 2 per cent to negative 4 per cent concurrent with Q2/26 results.
“Downgrading at the bottom? To be determined. We view Q2/26 as more of an unexpected downward recalibration rather than reset given the material reduction to 2026 guidance, the pushing out and/or lowering of medium-term financial targets and minimal updates around TELUS Health and non-core asset sales. We believe calling current share price levels as a definitive bottom is complicated by TELUS’ still premium valuation, a still challenging operating environment for the industry, what appears to be more challenging market conditions for crystallizations and/or non-core asset sales, and the absence of an obvious near-term catalyst. Our bull and bear case 2028E NAVs are $20/share and $11/ share, respectively.”
* CIBC’s Stephanie Price to “neutral” from “outperformer” with a $15 target, dropping from $24.
“Q2 marked the first quarter with TELUS’ new management team, which is focused on streamlining the business and concentrating investment where it sees the clearest path to returns. TELUS is focused on its core wireless/fiber business and AI and digital infrastructure. The company is in a period of transition, with a strategic portfolio review ongoing and weaker non-core businesses contributing to a significant 2026 guidance cut and dividend reduction. We move to the sidelines on TELUS given limited visibility into the outcome of the asset monetization process, and headline financial growth metrics below those of Big 3 telecom peers. ... We see upside if TELUS is able to rationalize its asset portfolio more quickly/profitably than expected and from improved visibility into the medium and longer-term outlook.”
* BoA Securities’ Matthew Griffiths to “underperform” from “buy” with a $13 target, down from $22.
“2026 growth expectations reset materially lower for revenue, adj. EBITDA, and FCF,” he said.
“Leverage target slips to 2028E; monetizations appear unlikely in the near term.”
Analysts making target revisions include:
* Canaccord Genuity’s Aravinda Galappatthige to $13.50 from $15.50 with a “hold” rating.
“TELUS’ Q2 disappointed mainly due to TELUS Digital, but the reductions to the F2026 outlook were somewhat surprising. While the dividend cut is behind us, and this is a positive, post-F2026 FCF expectations appear modest, and there is still little clarity on whether there could be execution on non-telecom asset sales,” said Mr. Galappatthige.
* TD Cowen’s Vince Valentini to $16 from $19 with a “buy” rating.
“We were not pleased with the increase in capex guidance for 2026, nor the new implied target for about $2.2-billion in FCF in 2028 (up at least 10 per cent per year from the new base of $1.8-billion in 2026), versus a prior target of over $2.9-billion,” said Mr. Valentini. “We also want to see more detail, and confirmed deal announcements, on the plan to simplify the portfolio via non-core asset sales. This leaves us with meaningful reductions today in our estimates and target price. ... Our FCF growth, capital intensity, and debt leverage targets largely lining up with management’s revised outlook commentary through 2028). In hindsight, we should not have upgraded the stock in advance of Q1/26 results (we had expected more divestiture news by now, and we did not anticipate the magnitude of erosion in revenue/EBITDA at TELUS Digital).”
* ATB Cormark’s David McFadgen to $14 from $16.50 with a “sector perform” rating.
Seeing Power Corp. of Canada’s (POW-T) net asset value growth providing an “upside opportunity,” Jefferies analyst John Aiken upgraded his rating for its shares to “buy” from “hold”
“As Power’s main operating subsidiaries are receiving increasing premium valuations, POW has not received the same treatment, with its discount to NAV widening out,” he explained. “We believe that this should reverse, particularly given the market’s interest in WealthSimple, which POW controls. Under a more reasonable 15-per-cent discount to NAV, Power represents significant upside, and we are raising our rating to BUY.”
Shares of the Montreal-based management and holding company jumped 3.4 per cent on Friday after it reported quarterly earnings per share of $1.54, topping both Mr. Aiken’s estimate of $1.49 and the Street’s $1.52 projection. He called the result, which represented a gain of 8.3 per cent quarter-over-quarter and 12.7 per cent year-over-year, “impressive.”
“Power’s valuation, while up, has not kept up with the pace of growth in its underlying subsidiaries,” said Mr. Aiken in a client note. “Its current estimated discount to NAV is close to 20 per cent after re-achieving 15 per cent in 2025. We believe that POW should be able to lower its discount as it streamline its holdings and benefits from the underlying growth of its operating companies. This reversion represents significant upside and justifies an upgrade to BUY under our new $114 target price.
“Power as a holding company provides an interesting investment opportunity. It has controlling interest in two Canadian financials (Great-West Lifeco - GWO, and IGM Financial - IGM) along with an interest in Europe’s Groupe Bruxelles Lambert SA (GBLB). These publicly traded companies represent over 90 per cent of POW’s NAV. The remainder comprises POW’s investments in investment managers Sagard and Power Sustainable.”
The analyst also warned investors to “not underestimate” POW’s controlling interest in Wealthsimple.
“While POW has several investments in its portfolio, by far the most intriguing is Wealthsimple, which continues to see its growth accelerate,” he said. “IGM holds the largest direct ownership stake in Weatlhsimple, and we believe that the market is applying a premium to its valuation for it. However, POW has control over Wealthsimple through its direct and indirect ownership, and its stake appears to be valued at a discount. Based on Wealthsimple’s growth and comparing to public peer valuations, Power increased its estimated valuation by 15 per cent, with the group’s overall interest valued at $4.4-billion.”
He hiked his target for Power shares by 23 per cent to $114 from $90. The average on the Street is $97.50.
“Power’s current discount to its NAV is 20 per cent, above its 10-year average pre reorganization of 15 per cent. While we see a potential return to the 12-per-cent (30-year average pre reorganization) mark, we do not see this as likely in the near term and expect volatility in the discount to NAV,” said Mr. Aiken.
Elsewhere, analysts making target revisions include:
* RBC’s Bart Dziarski to $103 from $87 with an “outperform” rating.
“POW shares trade at a 17-per-cent discount to NAV with a 3-per-cent dividend yield. With $1.6-billion of cash available (we estimate $1-billion is excess), POW retains optionality to continue its healthy pace of stock buybacks and re-deploy into growth areas of the business. LMPG exit demonstrates further simplification. GBL discount to NAV narrowing from 40 per cent to 20 per cent and 10-per-cent SHMI write-up highlight momentum beyond GWO/IGM momentum,” said Mr. Dziarski.
* Desjardins Securities’ Doug Young to $102 from $87 with a “buy” rating.
“Adjusted EPS beat both us and consensus. Relative to us, the contributions from GWO, IGM and its investment platforms (Sagard and Power Sustainable Capital) beat (GWO and IGM were expected given they reported 2Q26 results earlier this week), while GBL missed. Overall, it was a clean, good quarter and the simplification story continues to play out,” said Mr. Young.
Stifel analyst Martin Landry sees Alimentation Couche-Tard Inc.’s (ATD-T) US$8.7-billion all-cash acquisition of Polish convenience retailer Zabka Group SA as “a fair price for a premium growth asset.”
“Żabka appears to be one of the fastest growing and best managed retailers in Europe,” he said. “It has had a remarkable expansion during its short 28 years history and today, the company generates almost US$8 billion in revenues. Żabka has strong supply chain capabilities, a successful food offering, advanced capabilities in digital engagement, from which Couche-Tard can learn from and apply to its own network. These reverse synergies could extend well beyond the initial $250 million synergies planned.
“Strong expansion potential. The pace of Żabka’s growth is impressive. This year, the company expects to open 1,300 stores, which should increase the size of its network by 10 per cent. At the time of the IPO, in October 2024, management established a goal to double revenues in 5-years. Management has identified the potential to open 7,000 stores in Romania, of which 250 stores are currently opened. Over time, we believe that Żabka can expand elsewhere.”
In a client note, Mr. Landry said he does not expect the friendly transaction, which has also received the approval of Żabka’s Board of Directors, another bidder to derail the deal. However, he warned the “the voluntary tender offer process, reaching all shareholders, including retail investors, may be time-consuming.”
“The total implied enterprise value of the transaction is $11-billion, which represents a multiple of 10-times trailing EBITDA,” he added. “While this is slightly higher than the historical multiples paid by ATD, we see the multiple as fair given the above average growth prospects of Żabka, the quality of its operations and the potential for reverse synergies.
“Low risk transaction. Given this is not a turnaround story, it reduces the execution risk for Couche-Tard. In addition, while it is a large transaction its size is manageable for ATD. CoucheTard’s financial leverage is expected to reach 3 times on a pro forma basis at closing assuming 100 per cent of the shares are tendered.”
Maintaining his “buy” rating for Couche-Tard shares, Mr. Landry raised his target to $110 from $102. The average is $103.50.
“This transaction proves that the M&A story is not over for ATD, it could bring back investors’ spotlight on Couche-Tard,” he added. “While the acquisition can easily be financed with debt, management may consider a U.S. listing to address the perennial valuation gap vs U.S. peers. The acquisition of Żabka’s should be well received and shares should move higher in coming weeks as investors digest the details.”
“ATD’s shares trade at 17.5-times forward earnings, in-line with the 10-year average, while Canadian peers, such as grocers and dollar stores trade at a higher premium to their historical averages. ATD’s growth prospects have increased recently with the proposed acquisition of Żabka Group. This acquisition could be accretive to EPS by low double digits with 100-per-cent ownership and full synergies realized.”
Elsewhere, TD Cowen’s Derek Lessard bumped his target to $110 from $109 with a “buy” rating.
“Żabka adds a scaled, capital-light growth platform and best-in-class capabilities in food, digital, loyalty, private label and supply chain - areas where ATD has room to improve,” said Mr. Lessard. “We see meaningful reverse-synergy and format-export opportunities, while a conservative $250-million synergy target supports EPS accretion by Y2 and double-digit ROIC by Y3.”
In a client report titled The Weighting Is the Hardest Part, Scotia Capital analyst Jonathan Goldman said investors’ negative reaction to Magna International Inc. (MG-T) on Friday brings a buying opportunity.
“Consensus and the market are overly focused on quarters rather than full-year,” he said. “Commentary implies 3Q EPS of $1.50 vs. consensus of $1.83. But, that is a timing issue related end-of-life programs, such as Toyota Supra, Ford Escape, BMW Z4 (in 3Q), and new launches (in 4Q). The raised guide implies EPS of $3.75 in the 2H vs. consensus of $3.88. But, that is also a timing issue related to sooner than expected commercial recoveries. These discrete items can bounce around quarter to quarter, and bottom-line is that the companyraised2026 guidance on structural items, namely strong execution on operational excellence."
Shares of the Aurora, Ont.-based auto parts manufacturer closed down 1.8 per cent despite reporting quarterly adjusted earnings per share of $1.86, topping the Street’s expectation of $1.53 on higher margins (6.2 per cent versus a 5.5-per-cent estimate).
Magna now full-year EPS of $7.00 at the midpoint (from $6.75) mainly on higher margins.
“There were a lot of questions on the call about one-time benefits from tariff recoveries and higher equity income, but: 1) management still expects tariffs to be net neutral year-over-year (80-90 per cent of IEEPA refunds will be reimbursed to customers); 2) even excluding the tailwind, EBIT margins would have beat by 40 basis point (that’s impressive given commercial items were unfavourable and commodity inflation); and 3) it’s encouraging that the company is getting recoveries sooner than expected when it wasn’t too long ago that this was a slog,” said Mr. Goldman. That speaks to improved risk management processes following the period of hyperinflation/margin compression c. 2021-2023.”
Maintaining his “sector outperform” rating for Magna shares, the analyst raised his target to US$78 from US$74. The average is US$68.
“MGA shares trade at 10.5-per-cent FCF yield on our 2026E/2027E,” said Mr. Goldman. “Our main takeaway from the quarter is that earnings power is higher, visibility is better, and non-auto upside is more tangible. There was a lot of focus on 2027, but as we have written previously, even in a flat production environment (volumes have remained resilient), Magna can drive double-digit earnings growth with operational excellence (still in early innings) and buybacks alone (9 million shares remaining on current NCIB). Any growth over market, broader auto recovery, or entry into non-auto, is a bonus.”
Elsewhere, RBC’s Tom Narayan raised his target to US$69 from US$66 with an “outperform” rating.
“With 65 per cent of China revenue now from Chinese OEMs and a strong European footprint, Magna is reasonably well positioned as Chinese OEMs expand globally. Non-auto optionality is emerging but not a strategic pivot —full details at the November 11 Investor Day," said Mr. Narayan.
Following in-line second-quarter results, Fortis Inc. (FTS-T) is “addressing affordability head on,” according to RBC Dominion Securities analyst Maurice Choy, emphasizing the St. John’s-based utility “continued to highlight how its initiatives across its utilities have helped deliver rate benefits to customers.
“We view this discussion as timely given the heightened investor, regulatory and political focus on affordability and the introduction of data centres across North American utilities (particularly with the NIMBY approach observed across various jurisdictions),” he explained. “Undoubtedly, managing the affordability theme is crucial to winning broad support, and we like how the company and its subsidiaries sought to better quantify and communicate affordability-related benefits to its customers.”
In a client report titled Growing into the next decade, Mr. Choy said he’s “forward to events in the fall that should reinforce Fortis’ low-risk regulated growth into the 2030s” after it reiterated its five-year capex plan of $28.8-billion, which supports its rate base growth from $42.4-billion in 2025 to $57.9-billion in 2030.
“Fortis looks to release its new capital plan on its Q3/26 earnings call, and address its new funding plan at that time,” he added. “Major capex updates may include expansions at FortisBC’s Tilbury LNG, additional Tranche 2.1 investments at ITC, and updates at TEP (e.g., potential data center investments, new integrated resource plan/IRP filing this fall). On funding, we note that the current plan sees capex being funded primarily through cash from operations (59 per cent), net debt issued at the regulated utilities and holding companies (30 per cent), and common equity (11 per cent, notably via its DRIP). If capex materially rises, utilizing the ATM program would seem reasonable to us.
“Addressing the affordability theme. Fortis shared various examples of how its initiatives help provide benefits to its customers, including: (1) a 20-per-cent reduction in ITC Midwest network transmission rates by the end of the decade (versus 2026) from upcoming data center load; (2) a typical residential customer will save US$13/month via a proposed, first phase 300 MW data center load growth at TEP; and (3) investments in Tilbury 1A and Eagle Mountain Pipeline each offer 1.5 per cent of rate benefit at FortisBC.”
Keeping a “sector perform” rating for Fortis shares, Mr. Choy increased his target to $89 from $80. The average is $83.22.
“We anticipate EPS in 2028 will be $4.07, which represents roughly a 7-per-cent growth year-over-year, with this movement driven largely by rate base growth across the company’s utilities. Our revised price target reflects this new valuation base year and a modest increase to our forward valuation multiple to reflect Fortis’ growth outlook,” he said.
Elsewhere, other changes include:
* National Bank’s Patrick Kenny to $83 from $82 with a “sector perform” rating.
“In line with the accretion to our valuation from the Tilbury Phase 1B LNG expansion, our target bumps up $1 to $83, and combined with further regulatory/growth tailwinds at UNS and ITC, we maintain our Sector Perform rating ahead of the company updating its five-year capital plan this fall, confirming extension and expansion of the growth portfolio beyond 2030,” said Mr. Kenny.
* Scotia’s Robert Hope to $81 from $80 with a “sector perform” rating.
“Fortis delivered a solid quarter while providing greater visibility on several key growth initiatives. The company received a major milestone with the provincial approval of the Tilbury LNG Phase 1B expansion, which will be incorporated into an updated five-year capital plan alongside Q3/26 results. In Arizona, the Tucson Electric rate case decision was pushed to November 17, with management remaining optimistic regarding a year-end resolution, while discussions around data centre load growth continued and the company highlighted an 8 GW to 10 GW development pipeline. Tucson Electric and UNS Electric also plan to file updated IRPs this fall, which are expected to outline future resource requirements and investment timing under both high-growth and clean-energy scenarios. Following the Tilbury 1B approval, our 2026 and 2027 EPS estimates remain largely intact. However, we have stepped up our 2028 estimates to reflect the project’s progression,” said Mr. Hope.
* TD Cowen’s John Mould to $87 from $84 with a “buy” rating.
“We believe FTS’ heavy electricity weighting, diversification, and scale continue to justify a premium valuation,” said Mr. Mould.
In other analyst actions:
* ATB Cormark’s Chris Murray upgraded Aecon Group Inc. (ARE-T) to “outperform” from “sector perform” with a $57 target, rising from $49. Other changes include: National Bank’s Maxim Sytchev to $64 from $65 with an “outperform” rating, Desjardins’ Benoit Poirier to $58 from $61 with a “hold” risk, Stifel’s Ian Gillies to $59 from $60 with a “buy” rating and RBC’s Sabahat Khan to $50 from $53 with a “sector perform” rating. The average target on the Street is $58.86.
“Aecon delivered a strong quarter with better-than-expected top-line growth in Construction, driving the variance to ATBe, offsetting a softer margin than we had forecast. ARE’s updated outlook calls for stronger-than-expected revenue growth in 2026 and 2027, with a $10.5-billion backlog and strengthening demand conditions remaining supportive of outsized growth going forward and remaining a near-term catalyst. With expectations for significant sustained growth, we view the recent pullback in the shares as a buying opportunity, particularly with ARE regaining full control of Aecon Utilities, and are upgrading to Outperform,” said Mr. Murray.
* Stifel’s Ralph Profiti upgraded Eldorado Gold Corp. (ELD-T) to “buy” from “hold” with a $65 target (unchanged). The average on the Street is $58.70.
“Although challenges remain on parallel commissioning at McIlvenna Bay and Skouries, we see them as largely priced in given relative valuation. Eldorado reported in-line Q2/26 adjusted EPS of $0.54 and adjusted EBITDA of $281.1-million vs. our $292.2-million(consensus $291.4-million). Net-net, Q2/26 results were broadly in-line with updated FY26 consolidated gold production guidance of 495-600Koz (from 490-590Koz) reflecting McIlvenna Bay contribution with base guidance reaffirmed within our expectations and presents a positive step towards more consistent delivery through H2/26 and 2027. Skouries first ore was crushed in July and is on track for Q3/26 first concentrate and Q4/26 commercial production,” said Mr. Profiti.
* Coming off research restriction following the completion of its acquisition of G2 Goldfields, ATB Cormark’s Richard Gray upgraded G. Mining Ventures Corp. (GMIN-T) to “top pick” from “outperform” with a $65 target, up from $64. The average is $59.90.
“G Mining has an industry-leading growth profile, first quartile operating costs, and a highly trusted Management team to execute on the growth initiatives,” said Mr. Gray.
* TD Cowen’s Michael Tupholme dropped his target for Ag Growth International Inc. (AFN-T) to $23 from $30 with a “buy” rating. The average is $20.
“Restructuring initiatives are advancing, mgmt. expects $20-million from asset sales in H2/26, and Farm year-over-year EBITDA growth turned positive. Still, leverage remains elevated (5.2 times), AFN’s order book was down 12 per cent quarter-over-quarter, and Commercial remains weak (seen pressuring H2/26 consol. EBITDA). Nearterm patience required (awaiting clarity on debenture refinancing and upturn in Commercial), but we believe AFN offers value,” said Mr. Tupholme.
* National Bank’s Maxim Sytchev raised his Badger Infrastructure Solutions Ltd. (BDGI-T) target to $113 from $103, exceeding the $101.22 average, with an “outperform” rating. Other changes include: Canaccord Genuity’s Yuri Lynk to $125 from $112 with a “buy” rating, Acumen Capital’s Trevor Reynolds to $106.25 from $87 with a “buy” rating and Stifel’s Ian Gillies to $118 from $106 with a “buy” rating.
“It’s not hard to appreciate the positive reaction to the print when RPT, margins and build momentum are all accelerating. Data centre exposure at below 15-per-cent range makes the name AI-adjacent but not fully driven by the vicissitudes of perception around hyperscalers’ CapEx; the company’s exposure is broad, but we would be naive to think that this end market is not tightening capacity everywhere else (we have seen what a sentiment wobble can do to a stock over the last 2 weeks). That being said, with a healthy oil & gas backdrop helping the oil & gas/petrochemical/LNG complex and non-resi demand still positive, we see no reason to change our very constructive view on the stock. We hoped the company would beat; they did,” said Mr. Sytchev.
* RBC’s Maurice Choy increased his Brookfield Infrastructure Partners LP (BIP-N, BIP.UN-T) target to US$47, matching the average, from US$41 with an “outperform” rating.
“As we head towards the Investor Day on September 29, we see many of BIP’s growth themes from last year’s event as remaining intact, particularly on the Digitalization front. Recent partnerships formed by the broader Brookfield complex highlight BIP’s strong momentum in this theme, while recent geopolitical events suggest energy-related growth is forthcoming for the partnership in the WCSB (via Inter Pipeline) and in the USGC (via Cheniere Equity Partners). Together with the proposed corporate simplification, which we believe has broadly been well- received by existing investors, we remain constructive on BIP’s LP units,” said Mr. Choy.
* National Bank’s Mohamed Sidibé raised his target for Cameco Corp. (CCO-T) to $184 from $180 with an “outperform” rating. The average is $176.63.
“We are updating our model to reflect Cameco’s Q2/26 financial results reported before market on July 31. We also highlight in the back of our notes key highlights from the conference call which focused on Westinghouse’s AP1000 opportunity, the proposed Westinghouse IPO, uranium contracting momentum, and cost guidance. Cameco’s 2026 outlook was mostly reiterated, with the realized pricing and cost of sales outlooks increased on the back of higher FX, which we now reflect,” Mr. Sidibé said.
* Ventum’s Taylor Combaluzier became the first analyst to initiate coverage of Toronto-based Canadian Copper Inc. (CCI-CN), which is focused on its 100-per-cent-owned Murray Brook project in New Brunswick’s Bathurst Mining Camp, with a “buy” rating and $1 target.
“Canadian Copper is the first project advancing through New Brunswick’s new Comprehensive Minerals Strategy permitting framework, positioning it to benefit from the province’s efforts to rebuild its mining sector,” he said.
“Open-pit mining should provide consistent mill feed. Under previous ownership, underground mining constraints disrupted ore delivery and resulted in inconsistent plant utilization. Murray Brook should provide steadier, more predictable feed, supporting higher utilization.”
* Scotia’s Ben Isaacson raised his target for Canfor Corp. (CFP-T) to $18 from $15.50 with a “sector perform” rating. The average is $16.50.
“CFP’s self-help action is starting to pay off, ” he said. “First, lumber carried Q2, as prices firmed on lean channel inventory, further industry rationalization, and U.S. South logistics constraints. EU lumber also improved, as log cost inflation in Sweden moderated + better pricing. Pulp remains a drag, with producer inventory still elevated at 47 days. Second, CFP’s B/S improved to 20 per cent net debt/cap vs. 25 per cent quarter-over-quarter. Also, capex will moderate once Bruza and Iron Mountain spending wind down, while CFP’s duty will reset lower in mid-Q4, to 31 per cent from 48 per cent. Third, and not helping the situation, are 30-year treasuries that just hit their highest levels since ‘07, pulling up the 30-year fixed mortgage rate to 6.7 per cent. Finally, we adjusted ‘27 EBITDA to about $475-million, which assumes some lumber market normalization. Separately, several investors we spoke with recently would like to see the CFP board consider a small dividend ($0.07/sh or $8-million a quarter) - not now, but when the market turns. Their view: (1) it would materially broaden the investor base and perhaps the multiple for CFP; and (2) it would demonstrate CFP’s through-cycle confidence in its portfolio. We maintain a Sector Perform rating.”
* National Bank’s Shane Nagle bumped his Capstone Copper Corp. (CS-T) target to $17 from $16.50 with an “outperform” rating. The average is $18.20.
“We have incorporated Q2 financial results, advancement of the pyrite augmentation project at Mantoverde in 2027/2028 and adopted improved ramp-up assumptions for Mantoverde given strong performance to date. The improvement in our estimates has supported a modest target increase ... We reiterate our Outperform rating given the company’s discounted valuation, reduced cost pressures through H2/26 and our positive long-term growth outlook,” said Mr. Nagle.
* TD Cowen’s Sean Steuart hiked his Cascades Inc. (CAS-T) to $19 from $15 with a “buy” rating. The average is $14.50.
“With growing evidence of market tightness and industry leaders aligning behind efforts, we expect that containerboard prices will increase US$80/ton in September. Prices are increasing at a faster pace than cost inflation and margins are expected to trend higher, especially in 2027. CAS has an attractive FCF profile next year (expected 19-per-cent yield) and we forecast further balance sheet deleveraging,” said Mr. Steuart.
* Ahead of the release of its second-quarter results on Aug. 12, National Bank’s Zachary Evershed trimmed his target for Chemtrade Logistics Income Fund (CHE.UN-T) to $22.50 from $23.50. The average is $19.89.
“While near-term fundamentals have softened, final approval of the North Vancouver rezoning removes a key overhang, and with upside potential to our revised estimates should caustic pricing rally, and the company continuing to address the discounted unit valuation through the NCIB, we reiterate our Outperform rating,” said Mr. Evershed.
* RBC’s Bart Dziarski hiked his Definity Financial Corp. (DFY-T) target to $94 from $87 with an “outperform” rating. Other changes include: Scotia’s Phil Hardie to $84 from $83 with a “sector perform” rating and Desjardins Securities’ Doug Young to $85 from $80 with a “hold” rating. The average is $84.
“Q2/26 was the 2nd consecutive quarter of strong execution of Traveler’s integration, highlighted by DFY increasing its expense synergy guidance from $100-million to $125-million. Operating EPS was ahead of our/consensus estimates including solid ~10-per-cent underlying GWP growth. Definity’s valuation is attractive given longer- term 15-per-cent-plus ROE outlook post-Traveler’s acquisition integration. We increase our price target to $94 (was $87) primarily driven by a higher target P/B multiple of 2.3 times (was 2.2 times) reflecting business momentum and rolling forward our valuation to Q3/27,” said Mr. Dziarski.
* RBC’s Maurice Choy bumped his Enbridge Inc. (ENB-T) target to $84 from $79, which is the average, with an “outperform” rating.
“While we share the market’s surprise that the upstream portion of MLO2 has been postponed, Enbridge’s all-of-the-above approach means investors can continue looking forward to many growth initiatives ahead from the company. As we await clarity around future WCSB energy production later this year, various project sanctionings appear forthcoming as Enbridge advances towards its $10-20 billion target over 2026-2027, from Gas Transmission (e.g., expansions in AGT and Florida) to Renewable Power (advancing additional safe harboured projects). Overall, we believe Enbridge’s recent customer-led decisions reinforce the market’s perception of the company’s prudent approach to allocating capital,” said Mr. Choy.
* RBC’s Bart Dziarski increased his Fairfax Financial Holdings Ltd. (FFH-T) target to $2,316 from $2,277 with an “outperform” rating, while ATB Cormark’s Jeff Fenwick moved his target to $2,600 from $2,550 with a “sector perform” rating. The average is $2,950.
“Q2/26 was an ‘in-line’ quarter but intrinsic value under the hood continues to be generated with impressive quarter-over-quarter unrealized gains increase to $4.4-billion (not on the B/S), gains crystallization from 25-per-cent TRS position reduction, active buyback and FFH on track to exceed all three of its KPIs. Balance sheet remains strong with $2.3-billion of cash and a 28-per-cent leverage ratio. We continue to believe FFH stock is overly discounted, trading at 1.1 times forward P/B. We reiterate FFH as our top value pick,” said Mr. Dziarski.
* Citi’s Paul Lejuez cut his Gildan Activewear Inc. (GIL-N, GIL-T) target to US$57 from US$69 with a “neutral” rating. The average is US$79.45.
“In a critical quarter for addressing some concerns in the mkt, many questions remain unanswered,” said Mr. Lejuez. “Management didn’t give a DSO target but said that it should continue to come down as the year progressed, although DSOs (including factoring) remained elevated in 2Q. In addition, 2Q was a bit messy, with an $0.11 benefit from tariff refunds and a one-time SG&A benefit from a Barbados subsidy (we estimate another $0.11 to EPS), which implies that 2Q EPS missed consensus excluding these items. Mgmt now expects F26 sales at the low-end of their prior range ($6.0-6.2-billion). Mgmt expects a $195-million tariff benefit in 3Q ($0.85 EPS benefit), but 50 per cent will be reinvested. The story is less clear than usual, and with soft demand trends, it is hard to underwrite the big 4Q sales acceleration built into guidance. At current levels, we view the risk/reward as balanced and remain Neutral.”
* In a client note titled Quiet quarter, loud catalysts, RBC’s Maurice Choy increased his Pembina Pipeline Corp. (PPL-T) target to $77 from $68 with an “outperform” rating, while National Bank’s Patrick Kenny bumped his target to $73 from $71 with an “outperform” rating. The average is $71.91.
“Following multiple growth-oriented headlines over recent months, the quieter quarterly results event offered investors the opportunity to focus on Pembina’s core operations today. These include solid financial results that continue to meet the market’s expectations (e.g., in line Q2/26; reaffirming the recently upgraded 2026 guidance), and strong project execution achievements via the marquee Cedar LNG project. Taken together, we remain confident in the company’s ability to deliver (if not beat) a 5-7-per-cent fee-based EBITDA/share CAGR through 2030,” said Mr. Choy.
* National Bank’s Jaeme Gloyn moved his TMX Group Ltd. (X-T) target to $64 from $63 with an “outperform” rating, while RBC’s Bart Dziarski cut his target to $69 from $71 with an “outperform” rating.. The average is $64.86.
“TMX delivered a solid Q2 driven by revenue beats almost across the board. TMX also announced another strategic and accretive transaction (see Figure 1 for metrics). Management struck a bullish tone on the conference call, cementing our favourable view of the deal,” said Mr. Gloyn.
* National Bank’s Adam Shine hiked his TVA Group Inc. (TVA.B-T) target to $2.50 from $1.30. The average is $1.
“We updated our forecast for the material Q2 beat and evolving margin improvement in the Broadcasting segment. Our target is based on EV/EBITDA of 1.5 times 2026 & 1.1 times 2027 estimates. We continue to use low multiples given the muted historical valuation profile of TVA and as we await TVA Sports potentially renewing its NHL-related sub-licensing arrangement with Rogers which triggered over $200-million in aggregate losses over the prior 12 years - TVA Sports only improved its carriage rate in Q4 last year,” said Mr. Shine.