Thursday’s analyst upgrades and downgrades

Inside the Market’s roundup of some of today’s key analyst actions

Seeing “greater uncertainty” in its growth outlook and business performance, National Bank Financial analyst Gabriel Dechaine downgraded Sun Life Financial Inc. (SLF-T) to a “sector perform” rating from “outperform” previously, expressing concern over its outlook south of the border.

After the bell on Wednesday, the Toronto-based company reported underlying earnings per share of $2.05, exceeding both Mr. Dechaine’s estimate of $2.02 and the Street’s $2.01 expectation. He attributed the beat to lower expenses, higher asset management/fee income and lower taxes, which were partially offset by higher experience losses

Sun Life also announced a 4-per-cent increase to its quarterly dividend to $1 per common share.

The analyst said its performance in the United States has improved, however “a new headwind emerges.”

“$51-million of consolidated experience losses included $81-million of losses in the U.S. segment. While we saw improvement in Stop Loss (profits more than 2 times) and Dental, SLF reported negative Group LTD experience, ‘reflecting a broader industry trend’,” he explained. “We note that U.S. peers have reported issues with rising ‘Behavioural Health’ claims incidence rates. Although we are optimistic about SLF improving performance in previously challenged Group lines (esp. Stop Loss), we believe this new issue will weigh on sentiment.”

After reducing his price-to-book multiple, Mr. Dechaine reduced his target for Sun Life shares to $120 from $124. The average target on the Street is $117.08.

Elsewhere, pointing to “rapid Deterioration at MFS and U.S. Experience,” TD Cowen’s Mario Mendonca downgraded Sun Life to “hold” from “buy” with a $115 target, down from $123.

“SLF met our estimate as weaker U.S. results (LTD experience) was offset by better results in asset management & Canada. U.S. experience losses were US$81-million (forecast US$20-million) from morbidity in LTD (industry related). Commercial dental sales were strong, while MFS outflows accelerated. HK sales growth was positive, but pricing is hurting new business,” said Mr. Mendonca.

“In our view, the following support a premium valuation for SLF: 1) lower interest-rate sensitivity; 2) solid capital levels; 3) track record of earnings stability; and 4) strong ROE (low capital-intensity business mix). Our HOLD rating reflects SLF’s premium valuation (we see better upside in its life insurance peers), volatile results in the U.S., and the ongoing material outflows at MFS, a key driver of SLF’s earnings and industry-leading ROE.”

In a separate report, Mr. Dechaine said Manulife Financial Inc. (MFC-T) logged a “solid quarter that should help build confidence in 18-per-cent ROE [return on equity] target.”

The firm reported third-quarter core earnings per share of $1.24, beating his $1.13 forecast as well as the consensus projection of $1.17. The gap came from experience/other gains and a lower tax rate.

“Asia reports strong earnings + ‘resilient’ sales,” he said. “Segment earnings were up 17 per cent year-over-year, with all three sub-segments reporting double-digit growth. Total APE sales were down 1 per cent year-over-year, with weakness in Mainland China (down 71 per cent year-over-year) offsetting growth in Hong Kong (up 45 per cent) and Japan (up 39 per cent). Hong Kong sales performance should alleviate concerns that regulatory actions would hurt volumes. However, NBV margins on Hong Kong sales dipping below 40 per cent for the second consecutive quarter may trigger sales mix questions.

“Experience outperforms expectations. Results included $2-million of consolidated experience losses, against our forecast of negative $65-million. Though MFC reported higher claims in the Canadian Group business, they were offset by positive Individual Insurance experience in the U.S. & Canada, along with positive LTC experience.”

The results, which were released after the bell on Wednesday, led him to raise his target for its shares to $69 from $68 with an “outperform” rating. The average is $67.33.

Others making changes include:

* TD Cowen’s Mario Mendonca to $72 from $69 with a “buy” rating.

“Results were better than expected in all segments but WM [Wealth Management]. Asian earnings were solid & HK sales were excellent. WM earnings reflect the impact of the eMPF transition and were soft relative to our estimate. Retirement outflows were elevated. Earnings quality was weak as expected, but ALDA charges moderated somewhat (no change in return assumption). Buybacks continue - key ROE driver,” said Mr. Mendonca.

Democratic candidate Gina Hinojosa’s victory in governor’s race in Texas has created “uncertainty in the outlook” for U.S. reciprocating engine and behind-the-meter (BTM) power generation projects, according to TD Cowen analyst Aaron MacNeil.

Given Enerflex Ltd. (EFX-T) and Superior Plus Corp. (SPB-T) are “direct beneficiaries of this theme,” he downgraded his ratings for both companies to “sell” from “hold” previously, reiterating his “preference for D&C [development and completion] cyclicals, where valuation premiums are minimal and upside does not hinge on this policy uncertainty.”

“Why Texas Is the Key State: Texas accounts for 29 per cent of U.S. data-centre capacity leased since Q1/25, more than any other state,” explained Mr. MacNeil. “It had already frozen grid connections and halted air permits through TCEQ [Texas Commission on Environmental Quality] pending an ERCOT [Electric Reliability Council of Texas] audit, with permits previously expected to resume by December. These expectations were built on a different election outcome; the governor-elect backed a moratorium and appoints TCEQ commissioners, who set the pace and scope of future permitting. On-site generation, recips included, requires the same air permit as a grid-connected project, so future approvals, or further delays, will determine whether behind-the-meter power can proceed at all.”

“Our Preference for D&C Cyclicals: We continue to recommend rotation out of premium names into D&C cyclicals. To differing degrees, both EFX ($29.92) and SPB ($6.76) have experienced tailwinds from power/data-centre narratives dependent on continued order momentum; that is now the more uncertain variable, while several D&C cyclical names have not priced in a comparable growth premium. We prefer names where upside does not depend on resolving U.S. permitting uncertainty.”

Mr. MacNeil has a $44 target for Enerflex shares. The average on the Street is $49.12.

“We make no change to EFX’s backlog or its two large power orders,” he said. “What has changed is confidence in repeat orders, which the stock’s more than 230-per-cent move over 18 months arguably still implies. Our downgrade to HOLD is a valuation call in the context of the outcome of the U.S. midterms.

His target for Superior Plus remains $7.50, which is under the $8.78 average.

“[Subsidiary] Certarus’s CNG pitch depends on speed-to-market, since customers pay for mobile gas because grid interconnection takes years. If permitting, not grid access, is slow, that edge fades regardless of grid progress. Certarus expanded its fleet 20 per cent for its take-or-pay contract, but absent a second contract on comparable terms, we model the fleet reverting to core utilization once it concludes. Equipment is fungible, so excess capacity would compete with the wellsite business, a contagion risk we consider more likely today. At 3.8-times leverage, SPB has little room to absorb a shortfall, and a super El Nino adds an independent propane headwind.”

Following “solid” third-quarter results, including a 11-per-cent year-over-year rise in funds from operations per unit, Desjardins Securities analyst Brent Stadler raised Brookfield Renewable Partners L.P (BEP.UN-T) to “buy” from “hold” previously, expecting “the ‘blue wave’ in the U.S. to improve permitting on renewables with the potential to extend favourable tax credits that should further improve the competitiveness of renewables and drive upside.”

“We continue to believe corporate demand for power will remain strong, supporting renewables and nuclear growth,” he added.

Emphasizing nuclear “remains a potential significant long-term growth driver,” Mr. Stadler thinks Brookfield Renewable “continues to scale up development and capital recycling.”

“BEP continues to scale up development and capital recycling initiatives, providing additional flexibility around asset sales and driving a more programmatic process,” he said. “On capital recycling, BEP continues to generate returns at or above its 12–15-per-cent return hurdles, which can be redeployed accretively into higher returning opportunities. Increasing scale on the development portfolio (approximately 11GW+ run rate) should further benefit BEP’s capital recycling.

“Storage to represent 30–50 per cent of 2027 development pipeline. BEP continues to see an accelerating growth outlook for its storage platform, expecting storage to represent 30–50 per cent of its organic growth in 2027. With the recently closed transaction of Aypa, BEP is already accelerating growth within that platform, having signed new PPAs totalling 900MW at or above underwriting expectations, as demand for standalone and hybrid storage continues to accelerate. Storage opportunities are relatively higher return projects, offering long-term PPAs more in line with wind and solar.”

While he increased his earnings projections through 2027, Mr. Stadler kept his target for Brookfield Renewables units of $49, which is 64 cents under the average on the Street.

While the third-quarter results from Linamar Corp. (LNR-T) came in as expected, TD Cowen analyst Brian Morrison warns of “reduced Mobility earnings visibility, ongoing Industrial headwinds, share appreciation, and lack of near-term catalysts,” leading him to downgrade uts shares to a “hold” rating from “buy” previously.

“[Results] were largely in line on EBITDA/EPS,” he explained. “That stated, the Mobility segment margin was negatively impacted by a combination of slower production ramp volumes and fluid production schedules at certain European OEMs. This was offset by a sales/margin beat in the Industrial segment with ongoing strength at Skyjack, and market share gains in a weak Agriculture market supporting sales outperformance/margin increments. Normalized EBITDA/EPS of $405-million/$2.59 was largely in line with our forecast of $406-million/$2.68 and consensus of $412-million/$2.68. 2026/2027.

“Guidance Largely Unchanged: That implies year-over-year growth in sales and EPS, inclusive of attractive FCF. We do however expect the outlook for Q4/26 to be slightly lower than our prior outlook, as the Mobility segment endures lower launch volumes over fixed costs, and production volumes in Europe encounter extended shutdowns/variability. Lower visibility in our view warrants heightened caution on the target multiple.”

In a client note released before the bell, Mr. Morrison said immediate catalysts for the Guelph, Ont.-based manufacturer are “not readily identifiable.”

“Despite its recent pullback, LNR shares have increased 13 per cent year-to-date, and more than 75 per cent since early 2025,” he said. “This has been a combination of financial revisions/multiple expansion. Higher rates/yields make for a more challenging backdrop (consumer affordability), while current headwinds may limit near-term financial outperformance. Potential catalysts beyond our forecasting ability include FCF allocated to accretive tuck-in acquisitions/NCIB, and Industrial benefits from AWP tariff relief/bottoming of Agriculture demand. We acknowledge LNR has an attractive FCF track record/outlook and modest leverage, providing potential for upside earnings optional.”

He cut his target for Linamar shares to $106 from $120. The average is $111.20.

“With Q4/26 results not until early March, we see near-term share movements tied more to macro events than fundamental catalysts, and see more compelling opportunities in our coverage in the interim” he said.

“Our auto pecking order: MRE ($9.86: BUY), MGA (US$65.63: BUY), LNR.”

Elsewhere, Scotia’s Jonathan Goldman lowered his target to $103 from $111 with a “sector perform” rating.

“LNR reported 3Q adjusted EBIT of $230-million, in line with consensus of $227-million with higher revenues in each segment offsetting lower margins in Mobility, which was partly a function of the dilutive impact of metal pass-throughs,” said Mr. Goldman. “But 4Q Mobility guidance was below consensus calling for flat EBIT (Street up 20 per cent year-over-year) despite top-line ‘growth’ with margins expected to be below the normal range of 7 per cent to 10 per cent (Street 7.3 per cent) due to LVP softness/extended shutdowns, unfavourable mix, and launch programs. Those items should be mostly transitory, in our view (LVP expectations are already low for 4Q/2027). The company continues to win share in a lower LVP environment with new business wins YTD exceeding all of 2025. That said, the slight regression in margins might be viewed negatively by investors as the Mobility margins above 2018-2019 levels were seen as a defining feature vs. peers.”

Scotia Capital analyst Jonathan Goldman thinks it is becoming harder to support ATS Corp. (ATS-T) stock at current levels, citing “reduced visibility, which somewhat undermines the ‘cheap’ argument.”

“The fixed-cost transformation program is supposed to add $65-million to $75-million of annualized cost savings by the end of an 18-month period, which began last quarter (so 15 months left),” he explained in a client note titled Hear No Evil, Speak No Evil. But on the [post-earnings conference] call, management did not provide any guideposts for thinking about cadence, which we assume is not linear. That could lead to a wide divergence in forward estimates: for context, we were modeling a $10-million restructuring benefit in F2Q whereas it was likely negligible accounting for most of the delta between actuals/our estimates.

“The initiatives are tangible – Europe facility consolidation reducing square footage by 10 per cent; RIF of 300-400; sale of two transportation facilities in the U.S. – and SG&A was down 4 per cent year-over-year. SG&A/employee was up 3 per cent year-over-year, which shows more room to optimize the cost base.”

On Wednesday, shares of the Cambridge, Ont.-based automation solutions provider dropped 7.2 per cent, touching a 52-week low, after it reported revenue for its third-quarter of $665.8-million, falling 8.6 per cent year-over-year 2 per cent under the Street’s expectation of $679.9-million. Adjusted earnings per share of 27 cents missed by 18.2 per cent (33 cents) and fell from 45 cents from the same period a year ago.

It also withdrew its previous full-year fiscal 2027 expectations, which included modest revenue growth and 50–75 basis points of margin expansion, pointing to life-sciences booking delays, particularly in packaging equipment, to customer order timing and tariff uncertainty.

“While it was nice to see book-to-bill tick back up above 1 time for the first time in a year, we have limited visibility on a sustained reacceleration of organic growth,” said Mr. Goldman. “Perennially ‘strong’ funnel commentary is at odds with recent revenue trajectory – which may just be a function of inherent lumpiness in a project-based business, regardless of end-markets, but underscores our visibility issue. One silver lining in the quarter, S338 tariffs had a material negative impact on packaging customer ordering patterns, but tariffs have since been removed (last week) and should support some magnitude of recovery.”

Keeping a “sector outperform” rating for ATS shares, the analyst dropped his target to a Street-low of $27 from $29. The average is $37.06.

“Shares are down 35 per cent year-to-date (equivalent to $1.3-billion in market value). We decreased our valuation multiple to 7.25-per-cent FCF yield on our fiscal 2028 estimates (was 7 per cent) to account for a lack of visibility and potential for elevated intra-quarter volatility in results. We will look for insider buying activity as a bullish signal (we haven’t observed anything since F1Q results in August, but SEDI data can sometimes lag). Moreover, we have to imagine strategic value in the platform is higher than the current share price.”

Elsewhere, other changes include:

* RBC’s Sabahat Khan to $36 from $41 with an “outperform” rating.

“ATS reported FQ2 results below estimates and withdrew its F27 targets (also initiated FQ3 revenue guidance below consensus estimates heading into reporting). The strong bookings and progress on the FCTP were a bright spot, with the company positioned for top-line growth and margin progression through F28,” said Mr. Khan.

* Desjardins Securities’ Frederic Tremblay to $38.50 from $46 with a “buy” rating.

“A 2Q FY27 miss and lower-than-expected 3Q revenue guidance reinforce FY27 as a transition year, but sharply higher bookings (led by Life Sciences) and initial progress on the cost optimization program offer point to an encouraging setup for FY28. We continue to see attractive upside to the share price, although realizing that value will heavily depend on delivering meaningful top-line and margin improvements,” said Mr. Tremblay.

* National Bank’s Maxim Sytchev to $41 from $42 with an “outperform” rating.

“At some point, economic reality is bound to coincide with modelling expectations, and we appear to be closer to a trough, supported by growing bookings, some tariff rollbacks, and a cost-out program that should yield more material results in F2028E. We are also supportive of the company’s approach to invest in areas where there is growth (i.e., Healthcare / nuclear) while constraining / shrinking capital to transport and some more generic end markets. As we look forward over the next 12 to 15 months, F2027E is a financial performance write-off, but it will set up the stage for an improving F2028E. To avoid modelling a NAV predicated on trough earnings AND trough multiples, we nudge the target EV/EBITDA multiple to 13.0 times (from prior 12.0 times) on F2028E to account for this interplay; we reiterate our Outperform rating while marginally compressing target,” said Mr. Sytchev

In a separate report titled 2026 Looking Like a Reset Year, Mr. Goldman said he saw “few incremental negatives” in the third-quarter financial report from Stella-Jones Inc. (SJ-T), leaving his full-year estimates intact while reducing his 2027 expectations by 4 per cent due to “structural” concerns.

“First, the ramp at Candiac is taking longer than expected,” he said. “The facility is now expected to be at 80-per-cent capacity in 4Q26 and 95 per cent in 1Q27 (originally was expected to 2 times capacity in 3Q26 and be at full-ramp by 4Q26). Second, pass-throughs could take longer to flow through the P/L [profit/loss]. Margins are expected to remain below target range of 17.5 per cent to 18.5 per cent this year and on the call management said 2027 margins should be more than 17 per cent but that recovery to the midpoint of the range could take until late 2027 or 2028.

“And third, and most concerning, is the mix shift to lower-priced Southern Yellow Pine (SYP). To be fair, some of this was due to higher growth among customers who already prefer SYP (a good problem to have), but another subset switched in search of lower-cost options. That may be structural as, for all we know, SYP could be a perfectly fine alternative to Douglas Fir, Red Cedar, or Red Pine. We incorporate a pricing headwind for the next few quarters, which also implies volumes need to accelerate to backfill organic growth. The company still expects MSD% volume growth in wood utility poles this year, but the comps become tougher in 4Q26/1Q27.”

The Montreal-based company’s shares slid 7.5 per cent on Wednesday after it reported revenue for the quarter of $979-million, a decline of 2.2 per cent year-over-year and 3.1 per cent under the Street’s forecast of $1.01-billion. Adjusted earnings per share fell 12.6 per cent to $1.39, which is 13.1 per cent less than the consensus estimate of $1.60.

Concern stemmed from the impact of higher fuel costs, which management attributed approximately $10-million in profit pressure from, as well as a lag in residential lumber pricing, an unfavourable product mix and a gap versus the company’s full-year margin outlook (16.2 per cent in the quarter versus a 17.5-18.5-per-cent projection.

“We left our valuation multiple unchanged at 9 times EV/EBITDA on our 2027E, in-line with the company’s 5-year average but below the 10-year average of 10 times,” said Mr. Goldman. “An argument could be made for a discount due to the SYP mix shift, but the offsets are: 1) newly announced ‘Performance Optimization Program’ expected to generate $100-million in aggregate cost savings over the next three years (not in our numbers); and 2) strong cash generation supporting capital allocation, such as buybacks. The company expects FCF conversion from EBITDA of more than 60 per cent this year, which translates to $375-million on our numbers.”

Keeping his “sector outperform” rating for Stella-Jones shares, he cut his target to $76 from $79. The average is $86.14.

Elsewhere, other analysts making target revisions include:

* RBC’s James McGarragle to $70 from $76 with a “sector perform” rating.

“Q3 results came in below with revenue and margin missing expectations, pressuring shares today. However, mgmt outlined a credible path back to 17.5-per-cent margins as near-term headwinds ease (fuel / lumber pricing lag), contractual repricing kicks in (early 2027), and ties/poles optimization delivers savings (2027+). Demand remains resilient, supporting the medium-term outlook. Key for the investment thesis is that valuation has compressed meaningfully and if we are at trough earnings, this is a compelling entry point. That said, execution risk persists, and we want tangible proof of cost recovery and repricing progress before turning more constructive,” said Mr. McGarragle.

* Desjardins Securities’ Benoit Poirier to $77 from $99 with a “buy” rating.

“SJ broadly missed due to a $10-million fuel headwind, unfavourable pole mix, further Candiac downtime and a residential lumber pricing lag. Fuel pass-throughs reset only at annual contract renewals, so the headwind should persist into 1Q27 and likely not be fully recovered. The $30-million/year optimization program restores only the 17.5–18.5-per-cent target range, likely not before 2028. Given the weaker execution and lower growth, we revise our estimates and multiples,” said Mr. Poirier.

* TD Cowen’s Michael Tupholme to $81 from $93 with a “buy” rating.

“Q3/26 results were notably below expectations, with near-term headwinds expected to persist through Q4. That said, we see a more favourable setup in 2027, supported by improved Utility Prods. org. growth, a recovery in Class 1 vols., and initial optimization program benefits. Execution on these fronts seen as key to driving growth and a re-rating. Valuation is attractive,” he said.

* National Bank’s Maxim Sytchev to $80 from $92 with a “sector perform” rating.

“The conference call provided more granular points around potential margins and the macro backdrop, but we don’t believe incremental information will prevent another slide in forward earnings expectations, especially as 2027E is likely to be at the low end (17 per cent) of management’s target range. While we continue to like Poles from a structural demand replacement perspective, with flat pricing and some utilities facing higher inflation pressure across their overall supply chains, it’s hard to see a material growth acceleration here. Overall, we are lowering our forecasts while also compressing the target EV/EBITDA multiple to 10.0x (from 10.5 times) on blended 2026E/2027E forecasts to account for the pushed-out margin objective; we reiterate our Sector Perform rating while lowering the price target,” said Mr. Sytchev.

In other analyst actions:

* National Bank’s Nathan Po reduced his Alaris Equity Partners Income Trust (AD.UN-T) target to $30 from $31.50 with an “outperform” rating, while RBC’s Bart Dziarski trimmed his target to $26 from $27 with a “sector perform” rating. The average on the Street is $29.54.

“As investors needn’t worry about dilution in the near term, we believe the focus should remain on AD’s capital recycling catalysts over the next several years. With minimal exposure to geopolitical headwinds, inflation-protected revenue, and steady execution, we rate AD Outperform,” said Mr. Po.

* RBC’s Jimmy Shan reduced his Boardwalk REIT (BEI.UN-T) target to $83 from $84 with an “outperform” rating. The average is $76.64.

" Q3 results confirmed muted near-term earnings growth backdrop – elevated property taxes, a more ‘competitive’ market condition and higher interest rates. However, there were encouraging signs with occupancy holding firm at 97 per cent, sequential revenue growth (albeit modest) across most markets and BEI’s capital recycling program and active NCIB enhancing per-unit results. More importantly, with the stock embedding low expectations, we see BEI as a compelling play on a potential positive narrative flip on the broader macro outlook – incrementally constructive government immigration signals, energy/pipeline/resource project tailwinds and a disciplined capital recycling-funded NCIB provide catalyst potential and valuation floor," said Mr. Shan.

* TD Cowen’s Menno Hulshof bumped his Cenovus Energy Inc. (CVE-T) target to $56 from $55 with a “buy” rating. The average is $50.89.

“West White Rose first oil imminent, with Christina Lake North (MEG) tracking ahead of plan. Net debt down sharply, preserving flexibility for continued buybacks post-ATH closing despite some 3Q working capital benefit. MOU conversion needed for better visibility on the mid-term growth outlook; Nov. 15 deadline almost certainly slips, in our view. Investor Day remains a catalyst, just not in Jan,” said Mr. Hulshof.

* National Bank’s Maxim Sytchev hiked his target for Toronto-based Colliers International Group Inc. (CIGI-Q, CIGI-T) target to US$122 from US$109, keeping an “outperform” rating, while RBC’s Jimmy Shan cut his target to US$140 from US$155 with an “outperform” rating. The average is US$134.33.

“We have been caught flat-footed several times on CIGI, chasing the 10-year yield at the wrong point. We have elected to do nothing and stay put ahead of the quarter and with gold ripping today (correlating to a more subdued rates backdrop); we suspect we might have seen the peak of the 10-year in late October. Engineering is growing, IM appears to have stabilized, and the AI disruption narrative is cooling down. Leasing is rolling nicely and while Capital Markets weakened into the end of Q3/26 (Europe disruptions, elections in the U.S.), we should be able to see a less volatile backdrop. As a result, we think it’s better to remain constructive, leading us to marginally bump our target,” said Mr. Sytchev.

* National Bank’s Matt Kornack bumped his Dream Industrial REIT (DIR.UN-T) target to $15 from $14.75 with an “outperform” rating. The average is $15.69.

“Aside from slight occupancy slippage in the Ontario portfolio and uncertainty around a Quebec tenant in CCAA protection, Q3 results were handily ahead of expectations on achieved leasing spreads (leading to outperformance on SPNOI growth). That said, this success continues to eat into the portfolio-wide MTM potential. Management did highlight some positive market rent trends in W. Canada but also a nascent recovery here in Ontario and asset specifically in Quebec. Underpinning growth are above-inflationary embedded rent escalators with 2027 still shaping up positively on spreads (2028 will be more muted). Nonetheless, we think slower growth is priced given an elevated 7.25-per-cent implied trading cap rate with a potentially improving macro environment,” said Mr. Kornack.

* National Bank’s Jaeme Gloyn cut his target for Element Fleet Management Corp. (EFN-T) to $30 from $35, maintaining an “outperform” rating, while RBC’s Bart Dziarski lowered his target to $29 from $33 with an “outperform” rating. The average is $33.44.

“On the positive side, EFN delivered quarter-over-quarter VUM [vehicles under management] growth, strong FCF generation and NIM expansion,” said Mr. Gloyn. “However, softer service revenue, an operating margin and originations miss highlight continued challenges translating fleet growth into consistent organic revenue growth and operating leverage. Management provided soft 2027 guidance that drove a downward revision in our estimates and target price ... While we believe EFN is an attractive value play, management will need to demonstrate consistent organic growth to deliver share price upside.”

* RBC’s Bart Dziarski raised his target for Fairfax Financial Holdings Ltd. (FFH-T) to $3,335 from $3,254 with an “outperform” rating. The average is $2,949.31.

“FFH delivered a very strong Q3/26 with impressive quarter-over-quarter unrealized gains increase to $5.1-billion (which is not reflected on the B/S), solid underwriting results and FFH tracking ahead on all three of its KPIs. Balance sheet remains strong with $1.9B of cash and a 27-per-cent leverage ratio. Although FFH shares are up 24 per cent since September 30th, we continue to believe FFH stock is overly discounted, trading at 1.2 times forward P/B. We reiterate FFH as our top value pick,” said Mr. Dziarski.

* TD Cowen’s David Kwan raised his Lumine Group Inc. (LMN-X) target to $45 from $42 with a “buy” rating, while Desjardins Securities’ Jerome Dubreuil raised his target to $40 from $38 with a “buy” rating. The average is $38.22.

“We expect the solid Q3 results to help drive a continued rebound in the stock, as M&A activity remains elevated and is helping drive a sharp reacceleration in revenue growth (55 per cent year-over-year in Q3). Meanwhile, a strengthening in organic growth suggests that LMN is facing little/no AI disruption, which management reaffirmed. Margins may be soft in Q4, but we expect a strong rebound in 2027,” said Mr. Kwan

* Stifel’s Martin Landry trimmed his target for Maple Leaf Foods Inc. (MFI-T) shares by $1 to $35 with a “buy” rating. Other changes include: Desjardins Securities’ Chris Li to $33 from $36 with a “buy” rating and RBC’s Irene Nattel to $33 from $34 with an “outperform” rating. The average on the Street is $33.80.

“Maple Leaf is facing a difficult operating environment, coping with inflationary pressure in commodity and operating costs while dealing with a frugal end-customer. Despite that, MFI’s branded products have fared well, with revenues up 4.5 per cent, gaining share in most categories, which translated into an EBITDA margin expansion of 140 basis points year-over-year. However, rising poultry costs will create a mismatch between selling prices and costs in Q4/26 and early 2027. This, combined with a promotional environment, led management to tweak downward its 2026 EBITDA guidance, now expecting it around the low end of the original guidance $520 to $540 million guidance. We see the current challenges as temporary and believe the long-term growth algorithm of MFI is unchanged. In addition, the company’s balance sheet has improved, providing management with flexibility,” said Mr. Landry.

* TD Cowen’s Aaron MacNeil trimmed his South Bow Corp. (SOBO-T) target to $51 from $52 with a “hold” rating. The average is $49.80.

“Q3/26 was operationally and fundamentally in line, notwithstanding Blackrod lease accounting that contributed to the EBITDA miss and modestly lowers our estimates with no impact to DCF. More importantly, we are removing the risked Prairie Connector contribution from our C$51 PT (C$52 prior), returning the project to upside optionality given unresolved permit durability.”

* National Bank’s Don DeMarco lowered his SSR Mining Inc. (SSRM-T) target to $65 from $68, exceeding the $60.42 average, with an “outperform” rating.

“FY26 AISC [is] tracking above the top end of guidance as inflation and Puna re-sequencing weigh, overshadowing mixed Q3 results,” said Mr. DeMarco.

* TD Cowen’s Menno Hulshof raised his target for Suncor Energy Inc. (SU-T) to $129 from $125 with a “buy” rating. Other changes include: National Bank’s Travis Wood to $151 from $145 with an “outperform” rating The average target is $116.84.

“Global marketing + downstream optimization driving higher, more durable margin capture, while line-of-sight to net cash, potentially by year-end 2027, supports higher growth and rising RoC, largely through buybacks,” said Mr. Hulshof. “Could see some acceleration in thermal capacity growth but nothing too aggressive. MOU conversion provides potential upside, but deal quality matters more than timing.”