Inside the Market’s roundup of some of today’s key analyst actions
While TD Cowen analyst Vince Valentini emphasized the financial targets laid out by BCE Inc. (BCE-T) at its Investor Day event on Tuesday were no better than he expected with the exception of free cash flow, he now has “more confidence in the components of the outlook after management presentations and new segmented disclosures.”
Accordingly, seeing a more “credible” growth plan, he raised his rating for its shares to “buy” from “hold” previously.
“BCE is not a top pick, but we believe it has a better growth and balance-sheet trajectory than what we have seen for a few years; so, with the recent weakness in the stock, we are upgrading BCE to buy,” he said.
In a client note released before the bell, Mr. Valentini laid out six reasons for its upgrade with the most important being the view that “wireless pricing tide should lift all ships” and “true FCF (after leases) seems to be trending higher than what we had expected, which paints a good picture for both the dividend payout ratio and excess cash available to either repay more debt or invest faster in growth initiatives (such as equity contributions to the U.S. JV with PSP).”
“Despite slightly less revenue/EBITDA exposure to wireless than peers, wireless is still a big segment for BCE,” he said. “Front book pricing in Canada continues to improve, and as this likely translates into better reported ARPU [average revenue per user] growth over the next few quarters, we believe all names in this sector would move higher. BCE is not depending on a return to positive mobile ARPU growth in its guidance through 2028 (nor it it counting on any meaningful improvement in population/immigration growth), but we believe positive ARPU is a definite possibility by 2027.
“On management’s legacy definition, FCF guidance for 2028 is $3.9-billion, in line with our expectations (we had stated in our preview note last week that investors would be satisfied with $3.7-$3.9-billion). However, lease costs are expected to decline to $800-million by 2028 versus over $1.1-billion in 2024, which led to an increase in our definition of FCF estimates (which account for lease costs). We are satisfied with management’s explanation that new lease formation has already started to decline, so that it will just take some time for legacy leases to expire so that the reported net cash outflow declines. The company has been focused on lowering lease costs across many areas of its business, including office space, satellite transponders, and TV set-top boxes.”
After introducing his financial projections through 2028, Mr. Valentini raised his target for BCE shares to $37 from $35. The average target on the Street is $34.77, according to LSEG data.
“We see ample upside to support our BUY recommendation, as management executes on its strategy to drive 2025E-2028E revenue and EBITDA growth of 2-4 per cent and 2-3 per cent, respectively,” he said. “We believe some investors will still be attracted to BCE’s yield, despite the recent cut as interest rates in Canada likely continue to decrease over the next year.”
Elsewhere, RBC Dominion Securities’ Drew McReynolds bumped BCE to “outperform” from “sector perform” with a $47 target, up from $35.
“Following the Investor Day, we have updated our forecast to directionally reflect the newly-provided 2025-2028 outlook,” he said. “Factoring in our updated forecast, the rolling forward by one quarter the basis of our valuation, and modest increases in our target multiples given what we see as an improving growth and risk profile for the stock, our price target increases from $35 to $37. Reflecting relative returns within our Canadian telecom coverage, we are upgrading the stock to Outperform.”
Meanwhile, CIBC World Markets’ Stephanie Price raised her target to $37 from $36 with a “neutral” rating.
“BCE’s investor day highlighted its growth businesses (Ziply, Bell Business Markets, Media) and its ability to drive sustainable free cash flow growth (7-per-cent CAGR through the forecast period). However, investor focus was on the fact that the three-year financial targets implied flattish adjusted EBITDA margins, with legacy consumer and small business revenue decline of 10 per cent at the mid-point,” said Ms. Price.
“We view BCE as fairly valued at current levels. While the company is facing headwinds from increased competition and potential broadband regulatory changes, we view these as mostly priced in. We see upside from a faster-than-expected fibre rollout.”
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Following a run-up in its share price thus far in 2025, RBC Dominion Securities analyst Drew McReynolds lowered his rating for Quebecor Inc. (QBR.B-T) to “sector perform” from “outperform” previously, pointing to the relative returns to price targets in his Canadian telecom coverage.
“Despite stepping to the sidelines, we continue to expect Quebecor to execute on its national wireless strategy returning to sustained revenue and adjusted EBITDA growth within its Telecommunications segment in 2025,” he added.
In a client report released before the bell, Mr. McReynolds argued the “baton shifts from multiple expansion to NAV growth” for the Montreal-base company.
“We saw an attractive risk-reward set-up for the stock heading into 2025 with the expectation of renewed growth within Telecommunications that could be a catalyst for multiple expansion,” he said. “Following strong year-to-date performance driven mainly by multiple expansion (from 6.2 times FTM [forward 12-month] EV/ EBITDA at the beginning of the year to 7.0 times currently), we do expect the driver of upside in the shares from current levels to shift from multiple expansion to NAV growth (2025E-2028E NAV CAGR [compound annual growth rate of 12 per cent) driven by an improving wireless revenue growth trajectory and equity reflation underpinned by strong FCF generation and outright debt repayment given the low dividend payout ratio (30-35 per cent of FCF).”
“Looking for more attractive and/or timely entry points,” Mr. Reynolds raise his price target for Quebecor shares by $1 to $46. The average target on the Street is $44.52.
“At a FTM EV/EBITDA multiple of 7.0 times, we believe the company’s growth outlook is now more adequately reflected in the stock and we look for more attractive and/or timely entry points,” he said. “Our Telecommunications forecast factors in approximately 2-per-cent annual revenue growth and 2-3-per-cent adjusted EBITDA growth through the medium-term driven mainly by wireless subscriber growth (annual wireless net additions of 315k subscribers) and the resumption of modest low-single digit wireless ARPU growth beginning in 2026E.”
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With Citi remaining short-term bullish on gold “with cyclical and tactical tailwinds intact,” equity analyst Alexander Hacking feels valuation analysis feels “somewhat moot as the equities will keep going up as long as the gold price does, in our view – and vice versa.”
“But we note that equity valuations continue to lag the underlying with NAVs discounting in the low-to-mid $3,000/oz in our models,” he added. “This is normal investor caution about applying mid-cycle multiples to a hockey stick price chart. Industrial commodities will always ultimately revert to the cost curve/incentive price – whether this applies to a quasi-currency like gold remains to be seen.”
In a research note, Mr. Hacking updated his forecasts for stocks in his coverage universe to incorporate the firm’s latest gold price assumptions, including a 2025 average of US$3,400 per ounce. His third-quarter estimates now are “inline with, or slightly below, consensus as gold continues to surge.”
“After reaching our bullish $3,800/oz gold and $45/oz silver price forecast targets, we upgrade gold to $4,000/oz and silver to $55/oz on a 0–3-month basis,” he said. “The sharper revision higher for silver reflects relative value upside as gold approaches $4,000/oz. We suggest remaining tactically bullish near-term while cyclical and structural tailwinds remain intact. We also highlight coming court rulings on Lisa Cook’s role on the Fed board and tariffs as key catalysts to watch out for.
“Gold and silver marginal buyers are essentially willing to pay yesterday’s prices plus a premium providing bullish factors remain intact — Meanwhile stockholders are reluctant to sell to new buyers for the same reasons! How high can prices go? We are reluctant to call a ceiling; Gold is like the art market - prices have completely disconnected from marginal production costs (with the highest producer margins in 55 years), and we are at lofty price levels on most valuation metrics. The eventual physical market response function to higher gold prices is likely to be large in terms of lower jewelry demand and more scrap in the coming quarters but is also likely to materialize slowly. We also expect an eventual 2026 rotation out of gold into copper/aluminium amid a more growth-friendly macro-backdrop.”
With his new financial projections, Mr. Hacking made these notable price target assumptions:
* Agnico Eagle Mines Ltd. (AEM-N/AEM-T, “buy”) to US$198 from US$140. The average is US$172.43.
Analyst: “Agnico is arguably the highest quality name in the space given its assets, cost discipline, and management – all reflected in its valuation premium as it trades 0.2-0.3 P/NAV turns higher than peers. Production is predominantly in Canada with strong reserve life that is underpinned by brownfield expansion potential with a growing greenfield pipeline.”
* Barrick Mining Corp. (B-N/ABX-T, “neutral) to US$38 from US$21. Average: US$38.37.
Analyst: “Positive factors include low operating costs, a stable balance sheet, new management with a strong operating track record, and potential upside from synergies at the new Nevada JV. Negative factors include some challenging legacy assets, geopolitical risk, challenges to grow production from such a large base, and limited FCF. On balance, we see equal upside and downside at current levels. .... Barrick remains an execution story with its valuation discounted vs peers.”
* Newmont Mining Corp. (NEM-N/NGT-T, “buy”) to US$104 from US$74. Average: US$84.79.
Analyst: “Gold production is expected to be steady sequentially overall but minor changes at site-level. Penasquito is moving into polymetallic ore that will increase base metal production (with lower gold). Lower grades at Lihir and Cadia are mainly due to sequencing while Ahafo South is expected to be lower as open pit mining shifts from Subika OP to primarily in Awonsu OP. Project execution at Tanami, Cadia panel cave, and Red Chris block cave – among others - will be key to the medium-term equity story.”
* NovaGold Resources Inc. (NG-A/NG-T, “buy”) to US$12.50 from US$7. Average: US$8.78.
Analyst: “We expect NG to appreciate as the Donlin Gold project is de-risked over the next 12 months and gold prices are maintained at high levels.”
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Equity analysts at National Bank Financial continue to believe that “the ongoing Global Trade War and market uncertainty continue to support a positive outlook for precious metal prices and valuations.”
In a report released Wednesday, the group updated their estimates for companies across their coverage universe to reflect commodity price deck revisions, leading to price target increases to stocks.
“We expect the focus of Q3/25 to continue to be efforts on cost control and the impact of higher royalties, taxes and share-based comp as the gold price continues to move higher, with a look ahead into how this may impact 2026 budgeting,” the analyst said. “With spot gold prices now above US$4,000/oz and silver prices above US$50/oz, we expect further management commentary around capital allocation and anticipate the overall financial leverage of the sector to ease as debt is repaid with strong cash flows. Looking ahead, we expect to get some colour on how the higher commodity prices may impact YE R&R updates and mine plans as lower-grade tonnes become economical.
“We outline material deviations from Consensus with respect to Q3/25 financial results. At the time of writing, our estimates are materially higher than Consensus for Centerra Gold (CG:TSX), Newmont Mining (NEM:NYSE) and K92 Mining (KNT:TSX). Our financial estimates for the quarter are materially lower than Consensus for Barrick Mining (ABX:TSX), IAMGOLD (IMG:TSX), OceanaGold (OGC:TSX) and Wheaton Precious Metals (WPM:TSX) .... Companies with target price changes of 15 per cent or more include Centerra (up 30 per cent), Coeur (up 25 per cent), Equinox (up 21 per cent), Aris (up 19 per cent), Endeavour Silver (up 19 per cent), First Majestic (up 18 per cent), Artemis (up 16 per cent), Hecla (up 15 per cent), Kinross (up 15 per cent), Metalla (up 15 per cent) and Newmont (up 15 per cent).”
The analysts see these companies as “currently best positioned” heading into earnings season.
Seniors
- Barrick Mining Corp. (ABX-T, “outperform”) with a $65 target, up from $60. The average is $54.24.
Intermediates/Juniors
- Alamos Gold Inc. (AGI-T, “outperform”) with a $64 target, up from $56. Average: $54.64.
- Artemis Gold Inc. (ARTG-X, “outperform”) with a $47 target, up from $40.50. Average: $38.72.
- Equinox Gold Corp. (EQX-T, “outperform”) with a $23 target, up from $19. Average: $18.15.
- IAMGOLD Corp. (IMG-T, “outperform”) with a $23 target, up from $21. Average: $17.14.
- Torex Gold Resources Inc. (TXG-T, “outperform”) with a $86 target, up from $75. Average: $71.40.
Silver Companies
- Endeavour Silver Corp. (EDR-T, “outperform”) with a $19 target, up from $16. Average: $12.69.
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Following an update with Ovintiv Inc.’s (OVV-N, OVV-T) executive team, RBC’s Head of Global Energy Research Greg Pardy raised his rating for its shares to “outperform” from “sector perform” previously, believing the depth of its position in the Montney “affords energy investors an attractive/inexpensive avenue to gain sizeable exposure to an emerging oil/condensate resource play north of the border.”
“Our recent update with Ovintiv’s EVP & CFO, Corey Code, VP IR and Planning, Jason Verhaest, and Senior IR Analyst, Patti Posadowski, explored the company’s strategic direction, portfolio and initiatives that could improve its relative valuation over time,” he saidd. “What seemed clear from our discussion is just how core the Permian and Montney are to Ovintiv, with less focus placed on the Anadarko.
“Framing the Outlook. Ovintiv has delivered impressive operational/ financial performance over a series of quarters – and fancy footwork portfolio repositioning-wise – yet its relative valuation has yet to reflect that. In our minds, a better-defined shareholder returns profile (upon achievement of its $4.0 billion net debt target) and bolstered reserve disclosure (perhaps making use of Canadian standards) could assist in that regard. At the same time, potential non-core asset sales aimed at accelerating its net debt reduction may also be an avenue to pursue for several reasons."
Mr. Pardy thinks the company’s position in the Anadarko Basin in west-central Oklahoma “appears less core ... given its more limited running room but serves as a source of free cash flow generation.”
“In our scenario analysis, the disposition of Ovintiv’s Anadarko position at various proceeds is modestly dilutive to its 2026 free cash flow per share, but more importantly would serve to substantially reduce its net debt and financial leverage,” he said.
“Step two of our scenario analysis would suggest that redeploying about one-half of Ovintiv’s Anadarko (mid-point) proceeds of $3.0 billion over time into selective acquisitions in the Montney could allow the company to achieve its $4.0 billion net debt target, increase its production weighting into an earlier stage oil & condensate play in Canada, and potentially bolster its shareholder returns.”
The analyst reaffirmed his US$55 target for the company’s NYSE-listed shares. The current average is US$51.94.
“Under futures prices, Ovintiv is trading at a 2026 debt-adjusted cash flow multiple of 4.0 times (vs. our North American senior E&P peer group avg. of 5.7 times) and free cash flow yield (enterprise value) of 11 per cent (vs. peers at 9 per cent),” said Mr. Pardy. “We believe the company should trade at a modest discount vis-à-vis our peer group given its solid execution capability and shareholder returns, partly offset by higher-than-average balance sheet leverage.”
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In response to a recent share price surge, Stifel analyst Martin Landry downgraded his recommendation for Guru Organic Energy Corp. (GURU-T) to “hold” from “buy” previously.
“GURU’s share price has tripled over the past two months reaching $5.92 today, a 3-year high (vs. 9 per cent for the TSX Composite),“ he explained. ”In our view, GURU’s shares increased on the back of strong Q3FY25 results, which showed accelerating sales growth and, for the first time since 2021, positive adjusted EBITDA. However, we do not expect these trends to be sustainable and hence we believe the share’s price appreciation may be overextended.
“GURU’s shares currently trade at 4.7 times forward sales, twice the average of the past four years and slightly below Celsius at 5.5 times. Given GURU’s slower growth rate compared to Celsius and its marginal profitability versus Celsius’s 22-per-cent EBITDA margin, we believe GURU should trade at a larger discount to Celsius than the current spread of 0.8 times forward sales. For reference, the 3-year and 5-year average valuation spread on a forward sales basis is 5 times. Hence, we are changing our rating.”
In a client note released late Tuesday, Mr. Landry argued the Montreal-based drink company’s retail sales offer “a more accurate reflection of performance” than its share price indicates, and he does not expect a positive earnings performance in the coming quarters.
“While GURU’s Q3FY25 sales were up 24 per cent year-over-year, the figure is not directly comparable due to a change in distributor, which led to a higher selling price,” he said. “Adjusting for this and making a like-for-like comparison, we estimate that organic revenue growth in Q3FY25 was closer to 15–17 per cent year-over-year, driven by successful innovation and strong in-store activations. We believe investors will focus on retail sales to evaluate GURU’s performance in the coming quarters, and in our view, it is unlikely that retail sales increase at the 20-per-cent pace seen in wholesale shipments during Q3 FY25."
“While GURU reported positive EBITDA for Q3FY25, this was largely due to abnormally low marketing spend during the transition of distributors. Management indicated that marketing expenses were approximately $1-million below typical levels, which would have otherwise resulted in a negative EBITDA for the quarter. Therefore, with a return to more sustainable marketing investment, we do not expect GURU to report positive EBITDA in the upcoming quarters.”
Mr. Landry’s newly introduced fiscal 2027 estimates project revenues to grow 12 per cent year-over-year to $42-million, pointing to increased velocity assumptions in both Canada and the United States.
“We believe GURU’s zero-sugar flavors will continue to gain market share over the next few years. Our forecast calls for adjusted EBITDA of $2 million in FY27, up from $0.2 million in FY26, driven by ongoing margin expansion and improved fixed cost leverage,” he added.
With his new forecast, the analyst raised his target to $4.50 from $4. The average on the Street is $3.50.
“GURU’s shares currently trade at nearly 5 times forward sales, a premium multiple typically reserved for companies with rapid growth rates,” said Mr. Landry. “While GURU’s outlook is promising, with accelerating sales driven by new product launches and improved control over customer relationships and marketing strategies, we do not expect sales to grow at a rate exceeding 20 per cent year-over-year on a comparable basis. In our view, such growth would be necessary to justify a forward sales multiple above 4 times. Notably, GURU’s shares last traded above 4 times forward sales in August 2022, when we were forecasting 40-per-cent year-over-year revenue growth.
“We would revisit our stance on lower valuation. Our rating change is based solely on valuation, as we do not anticipate any operational issues that could disrupt GURU’s momentum. As such, we would reconsider our HOLD rating in the event of a valuation pullback or a material improvement in the company’s growth outlook.”
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In other analyst actions:
* Predicting sustained oil price headwinds, CIBC’s Dennis Fong downgraded Imperial Oil Ltd. (IMO-T) to “underperformer” from “neutral” with a $110 target, rising from $108. The average on the Street is $108.33.
“Commodity price volatility moderated in Q3/25, but headlines still dominate investor focus around oil,” he said. “Crack spreads took a step higher and remain constructive to start Q4/25. We expect the WCS-WTI basis could widen seasonally. Producers curtailed natural gas volumes through part of Q3/25 as Western Canadian prices reached multi-year lows. We expect supply and demand balances to tighten in 2026, which could support AECO.
“Our top ideas include SU, TOU and WCP for large caps, and BIR, KEL, NVA, SDE and TVE for SMID-cap E&Ps. ... We are lowering our rating on IMO to Underperformer (from Neutral). While we expect the refining assets provide downside-risk protection in a volatile oil tape and continued operational execution, the strong share price performance drives a muted return.”
* Following the completion of its Fraser River Pile & Dredge acquisition, Raymond James’ Frederic Bastien increased his Bird Construction Inc. (BDT-T) target to $37, exceeding the $35.19 average, from $25 with an “outperform” rating.
“We see this deal as a springboard for growth with the combined entity poised to ride Canada’s wave of infrastructure investments, including nation-building projects that support port expansion, transportation, trade, defence and energy requirements,” he said.
* Desjardins Securities’ Benoit Poirier hiked his Bombardier Inc. (BBD.B-T) target to $236 from $186 with a “buy” rating and reiterated his bullish stance.
“Investors have been asking if we still like the name; the answer is yes,” he said. “While the easy money has likely been made (a near-term double from here seems unlikely), we believe BBD is entering Phase 2 of its story, with more upside to capture. The valuation gap vs long-range bizjet peers (AM, ERJ, GD) persists: BBD trades at 10.8 times our 2026 esitmated EBITDA vs the peer average of 12.8 times and offers a 6.6-per-cent FCF yield vs 2.9 per cent for peers. With no clean-sheet programs on the horizon, we still see a path to US$2-billion in FCF by 2030.”
* Raymond James’ Daryl Swetlishoff reduced his targets for Canfor Corp. (CFP-T, “outperform”) to $17 from $19, Canfor Pulp Products Inc. (CFX-T, “outperform”) to 75 cents from $1 and West Fraser Timber Co. Ltd. (WFG-N/WFG-T, “market perform”) to US$70 from US$75. The averages are $16.17, 83 cents and US$89.33.
“We view current spruce-pine-fir (SPF) and southern yellow pine (SYP) lumber prices as unsustainable,” said Mr. Swetlishoff “We expect North American lumber prices to grind higher on incremental market-related outages and reduced Canadian shipments to the U.S. market. While curtailment announcements following the doubling of ‘regular’ duties and Section 232 tariffs have been measured, we anticipate widespread shuts on the back of significant cash losses. Even at bargain-basement valuations, we advise investors to wait for these supply-side signals before committing new capital. Building Materials stocks are highly correlated with spot lumber prices, and we expect shares to appreciate as commodity prices approach cash-cost levels in the coming months. Longer term, we expect improving affordability to support modestly higher existing home sales and single-family housing starts to provide an additional leg up on prices. With OSB fundamentals still soft (as new capacity ramps) we remain more bullish on lumber and recommend Outperform-rated Canfor and Interfor for the 2025 seasonal trade. We also reiterate our top picks remain Strong Buy rated diversified industrial players Doman and ADENTRA.”
* Despite seeing its current valuation as “compelling,” National Bank’s Cameron Doerksen trimmed his Cargojet Inc. (CJT-T) target to $120 from $123, keeping an “outperform” rating. The average is $142.93.
“We believe that Q3 volume trends were broadly consistent with what Cargojet experienced in Q2,” he said. “In late September, the main labour union at Canada Post launched a full national strike that has since reverted to rotating strikes. The same union held a national strike in Q4/24 with the volume impact for Cargojet modest, and we expect a similar outcome with the current situation. The majority of any lost package volumes from Canada Post will likely shift to other parcel carriers who are also Cargojet customers, although some letter mail-related volumes and revenue could be impacted.
“Tariff/trade and macroeconomic concerns have weighed on air cargo and other package & courier stocks this year with CJT shares down 22 per cent year-to-date (versus TSX up 22 per cent), consistent with other global P&C stocks like FedEx (down 18 per cent YTD) and UPS (down 34 per cent YTD). However, we see Cargojet outperforming many of its P&C and other logistics peers supported by steady domestic network demand, long-term contracts with all key customers that feature minimum volume/block hour protections, and potential further growth in other international markets/charter.”
* In a quarterly earnings preview, Desjardins Securities’ Doug Young raised his targets for Canadian lifecos in his coverage universe. In order of preference, they are: Sun Life Financial Inc. (SLF-T, “buy”) to $94 from $90; Manulife Financial Corp. (MFC-T, “buy”) to $52 from $48; Great-West Lifeco Inc. (GWO-T, “hold”) to $60 from $55 and IA Financial Corp. Inc. (IAG-T, “hold”) to $163 from $149. The averages are $90.75, $48.38, $58.10 and $159, respectively.
“There are several themes we will be watching for with 3Q25 results. (1) Core EPS should benefit from higher average equity markets, a depreciating C$ and share buybacks (year-over-year). (2) Reported EPS should not deviate materially from core EPS (higher equity markets offsetting alt investment returns falling short of expectations). We are forecasting higher reported EPS (vs core) for three of the four lifecos. (3) On a company basis, the main focus is: (i) the actuarial review impact for SLF, MFC and GWO (net, we’re not expecting much); (ii) US dental results for SLF; (iii) Asia trends for MFC and SLF; (iv) US extended vehicle warranty trends for IAG; and (v) Empower for GWO. We increased our target prices, maintained our ratings, and kept SLF and MFC as our top two picks, while we shifted GWO into our third slot (and IAG into fourth), in our pecking order,” said Mr. Young.
* Scotia’s Phil Hardie raised his IGM Financial Inc. (IGM-T) target to $64 from $57 with a “sector perform” rating. The average is $54.50.
“IGM announced an updated valuation of its stake in Rockefeller Capital Management following a recent recapitalization transaction,” he said. “Based on the deal valuation, IGM’s equity stake in Rockefeller is currently valued at $1.58-billion ($6.69/sh), up $750-million ($3.18/sh) from its initial investment of $835-million in 2023. IGM will remain the second largest and a strategic investor post-sale of a small portion of its interest to support the goal of the recapitalization transaction.
“We see the transaction as providing another tangible data point demonstrating the value creation potential of its portfolio of its strategic investments, which we continue to believe is not fully reflected in its stock price and remains a source of overlooked value. Wealthsimple provides another example, with estimated value of IGM’s stake in the company rising by almost 80 per cent over the last year.”
* While he expects to see “good” sales growth when Metro Inc. (MRU-T) reports fourth-quarter results on Nov. 19, National Bank’s Vishal Shreedhar warns the disruption at its Toronto distribution centre will hinder profitability, leading him to trim his target for its shares to $107 from $110 with a “sector perform” rating. The average is $106.90.
“We believe MRU is a solid company which has delivered solid long-term returns over various economic cycles. However, our coverage presents investments which offer a better comparative investment proposition,” said Mr. Shreedhar.
* Ahead of the release of its third-quarter results on Oct. 29, ATB Capital Markets’ Chris Murray bumped his Canadian Pacific Kansas City Ltd. (CP-T) target to $125 from $124 with an “outperform” rating. The average is $122.20.
“The Company reported RTM [revenue ton miles] of 5.2 per cent in Q3/25, slightly below ATB’s estimate but exceeding peers, with strength in grain and intermodal offsetting weaker industrial activity,” said Mr. Murray. “Our revised estimates call for mid-teens EPS growth in Q3/25 with expectations of a healthy fall harvest, growth in intermodal, and improving execution positioning CPKC for a strong Q4 and start to 2026. We continue to view synergy realization and company-specific growth opportunities as mitigants to industry-wide volume headwinds, with insider reports indicating significant buyback activity in Q3/25, which we expect to continue given moderating leverage levels and prevailing valuations. We will be looking for an update on the outlook for intermodal and grain volumes with the quarter and expect potential network consolidation to remain topical.”
* In a report titled ‘Riches in Niches’ for this Healthcare Technology consolidator. Stifel’s Justin Keywood initiated coverage of Vitalhub Corp. (VHI-T) with a “buy” rating and $15 target. The average is $15.43.
“VitalHub is a consolidator of niche healthcare software assets, focused on patient flow, electronic health records and other workflow/patient engagement tools. The company has completed 22 acquisitions since 2010 with a track record of success, including ‘mid-teens ROIC’ and healthy 25-per-cent EBITDA margins. We believe the company is still in the ‘early innings’ of a roll-up journey with 400 prospective assets and strong balance sheet with $110-million cash, no debt and $65-million facility that supports a ‘double’ in ARR. Unlike other consolidator models in more splashy industries that may be under pressure, we see healthcare as distinctly valuable, including niche assets within public health systems for Canada, UK and Australia (VitalHub targets). These systems are under significant strain as the population ages and technology could help, highlighting product stickiness and funding visibility. We believe M&A will continue to fuel the stock and act as catalysts,” said Mr. Keywood.