Wednesday’s analyst upgrades and downgrades

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

While acknowledging iA Financial Corporation Inc.’s (IAG-T) better-than-anticipated third-quarter results were “driven by elevated insurance experience gains,” RBC Dominion Securities analyst Bart Dziarski thinks its “underlying business momentum is improving” and not properly “reflected in current valuation or sentiment (6 of 8 analysts covering IAG have neutral ratings.”

Accordingly, he raised his rating for the Quebec City-based company’s shares to “outperform” from “sector perform” previously.

After the bell on Monday, IAG reported core earnings per share for the quarter of $4.03, exceeding both Mr. Dziarski’s $3.79 estimate and the consensus projection of $3.05, while reported earnings per share of $2.89 fell short of expectations ($3.15 and $3.05, respectively). He attributed the beat to core insurance experience gains of $40-million (versus his $5-million forecast), “primarily in Canada (50/50 weather/mortality) and the U.S.”

“IAG will be monitoring U.S. lapse for its annual assumption review next quarter, and expects a neutral to slightly positive impact overall (globally), which is a key signpost we were watching for before upgrading,” he said.

“Underlying business momentum is improving. Excluding insurance experience, U.S. core earnings of $33-million (up 38 per cent quarter-over-quarter) were 12 per cent above our forecast with Dealer Services sales up 4 per cent year-over-year, an acceleration relative to H1/26 sales of down 6 per cent year-over-year. IAG maintained its #1 position in Canada for growth, AUM, and segregated fund net sales (strong at $1.3 billion, up 33 per cent quarter-over-quarter and 34 per cent year-over-year). Putting it all together, net premiums, premium equivalents, and deposits of $18.8-billion year-to-date are on pace for another record year, annualizing to $25.1 billion (up 14 per cent year-over-year). Separately, as outlined in our lifeco prime, IAG is tracking well against its 8-9-per-cent return assumption for alternative investments (i.e., Private Equity, Infrastructure, Real Estate) based on our calculations.”

In justifying his rating revision, Mr. Dziarski also emphasized the company’s strong capital position “provides optionality” with holdco cash of $0.9-billion providing “ample dry powder for capital deployment.”

“Model re-calibration drives higher estimates,” he added. “We mostly reflect higher forecasts in 2027 and 2028 across the segments except for Insurance, Canada. Our core EPS estimates increase to $16.30 (was $15.95) in 2027 and $18.00 (was $17.41) in 2028. Overall, our estimates are 2 per cent ahead of consensus on average in 2027 and 2028, and imply IAG achieves its 10-per-cent-plus earnings growth objective.”

With those changes, Mr. Dziarski raised his target for IAG shares to $237 from $213. The average target on the Street is $219.57.

“We upgrade the stock to Outperform from Sector Perform, reflecting core ROEs ahead of target which we expect to improve over time, strong core EPS growth of 10 per cent in both 2027 and 2028, as well as solid capital position and generation capabilities,” he said.

Elsewhere, Desjardins Securities’ Doug Young raised his target to $230 from $220 with a “hold” rating.

“Overall, it was a strong, clean quarter,” said Mr. Young

Seeing “reduced visibility on credit recovery” following the release of its third-quarter results, Desjardins Securities analyst Gary Ho downgraded Goeasy Ltd. (GSY-T) to a “hold” rating from “buy” previously.

“3Q adjusted EPS missed on an ACL [allowance for credit losses] build, but loan book, yield and NCO met 3Q guidance,” he said.

“NCO [net charge-offs] improved 150 basis points quarter-over-quarter to 15.2 per cent, but 4Q guidance (14.5–16.0 per cent) implies a pause vs our expectation of continued improvement, and the reserve build now includes unsecured. The year-end loan book outlook is now $4.6–4.8-billion. Direct-to-consumer loans grew qoq and cash rose to $492-million.”

After the bell on Tuesday, the Mississauga-based company reported an adjusted earnings per share loss of 94 cents, missing the estimates of both Mr. Ho (a loss of 10 cents) and the Street (a 37-cent loss). Book value per share came in at $48.84, which is under the analyst’s $49.40 projection.

“Reason for our downgrade: (1) NCO improvement has paused. The 4Q guidance midpoint of 15.25 per cent is flat vs 3Q’s 15.2 per cent and 300 basis points above our prior estimate; a softer labour market and higher cost of living could weigh on customers, in our view. (2) The reserve build now includes unsecured. The ACL rate rose 60 basis points quarter-over-quarter to 10.59 per cent (we assumed flat) on LC auto/powersports, unsecured and a weaker macro outlook; past dues rose 70 basis points quarter-over-quarter to 12.6 per cent and Stage 3 loans to 6.5 per cent (from 6.0 per cent), while unsecured NCO of 15.7 per cent remains 300bps above 3Q25.

“(3) As a result, and with a lower 4Q loan book, we cut our 2026/27E EPS to a loss of $1.54/$3.49 (was $0.16/C$7.20) and lowered our 4Q26E BVPS by 3 per cent and 4Q27E by 9 per cent. (4) Debt/adjusted tangible equity rose to 5.02 times (from 4.95 times at 2Q),” the analyst explained.

After lowering his earnings expectations through 2028, Mr. Ho dropped his target for Goeasy shares to $44 from $56. The average is $47.70.

“GSY is executing on its six-point plan and funding access has improved, but we await clearer evidence of credit normalization. We could be wrong if (1) LC is right-sized faster than expected, (2) macro and credit experience improve, driving ACL releases, or (3) 4Q guidance and the 3Q reserve build prove conservative under the new chief credit risk officer,” said Mr. Ho.

Elsewhere,, TD Cowen’s Graham Ryding cut his target to $44 from $47 with a “hold” rating.

“Q3/26 results were directionally in line with expectations (operating loss), but slightly worse than forecast (higher bad debt expense). The updated outlook for Q4/26 was revised lower (lower loan growth). Our estimates have moved lower. Liquidity remains solid, and delinquencies relatively stable. Earnings visibility remains low in our view. Expect negative share price reaction,” said Mr. Ryding.

In a research report previewing approaching fourth-quarter earnings season for Canadian banks titled Ready, Steady, Go!, Desjardins Securities analyst Doug Young predicted it will be “a decent quarter” for the group, but he expects “focus will be more on management’s FY27 outlook, specifically around loan growth, NIMs, credit, capital markets, ROEs, and plans for capital deployment.”

“What other presents might the group have in store? We have a constructive view on the banks; however, we remain market weight, as we see a balance between positives and concerns at this juncture,” he added. “There were no changes to our pecking order, and our Buy-rated names are: TD, RY, and in the small cap space EQB.”

Mr. Young is projecting a 12-per-cent year-over-year increase in cash earnings per share of the Big 6, which he said is “primarily driven by 10-per-cent year-over-year growth in adjusted pre-tax, pre-provision (PTPP) earnings and, to a lesser extent, buybacks.”

“We expect decent growth across all divisions on a year-over-year basis; however, we expect a pullback in capital markets results vs last quarter,” he said. “The FY27 outlook for capital markets will be topical given how much this segment contributed to upward estimate revisions through FY26.

“On credit, we forecast an average PCL rate of 41 basis points (down 1 basis point year-over-year), with performing PCLs [provisions for credit losses] of 1–4 basis points and impaired PCLs similar to last quarter. While we see little evidence of a material deterioration of credit conditions this quarter, it does feel as though PCL rates are entering a plateauing phase. So, the FY27 outlook will be important in terms of providing a sense of expected direction over the coming year. We expect loan growth, stable NIMs, good expense discipline, and positive operating leverage for the Big 6. That said, expenses could be elevated from higher variable comp and potentially higher.”

His pecking order and targets for stocks in the sector are:

1. Toronto-Dominion Bank (TD-T, “buy”) with a $190 target, rising from $183. The average on the Street is $183.73.
2. Royal Bank of Canada (RY-T, “buy”) with a $316 target, down from $320. Average: $309.37.
3. EQB Inc. (EQB-T, “buy”) with a $145 target, down from $150. Average: $136.50.
4. National Bank of Canada (NA-T, “hold”) with a $230 target (unchanged). Average: $229.70.
5. Canadian Imperial Bank of Commerce (CM-T, “hold”) with a $170 target (unchanged). Average: $173.32.
6. Bank of Montreal (BMO-T, “hold”) with a $260 target (unchanged). Average: $260.75.
7. Bank of Nova Scotia (BNS-T, “hold”) with a $133 target, up from $130. Average: $134.91.

Scotia Capital analyst Jonathan Goldman thinks the 6.4-per-cent drop in Finning International Inc.’s (FTT-T) share price on Tuesday was “an overreaction” by investors, calling its third-quarter earnings “not a real ‘miss’.”

The Edmonton-based company, which is the world’s largest dealer of Caterpillar equipment, fell after it reported third-quarter adjusted earnings before interest and taxes of $243-million and earnings per share of $1.20. Those results fell short of the Street’s expectations of $251-million and $1.25, respectively, by 3 per cent and 4 per cent.

“Initial disclosures (quarterly report and PR) omitted LTIP [long-term incentive plan] impact of $14-million or $0.08 per share, which was disclosed in the presentation,” he explained. “Adding that back, EBIT/EPS would have beat by 2 per cent/2 per cent on elevated expectations.”

In a client note, Mr. Goldman also emphasized investors have overlooked signs domestic “momentum is building with strong oil sands activity levels and continued improvement in construction.”

“On the call, management noted improved sentiment from Canadian customers following announcements related to Build Canada while the data centre win opens a new opportunity set not in our numbers,” he said. “Significant truck population growth over the past few years (more than 25 per cent) coupled with increasing technician headcount should support high-single-digits PS [Product Support] growth into 2027 at least (e.g., rebuild activity is up 2 times year-to-date). Canada is more than picking up the slack for South America, which is still in a lull (as telegraphed by the company since the beginning of the year).

“We view South America as a ‘timing issue’ as end-market fundamentals remain solid (see copper price/Argentina upside). Consolidated backlog growth of up 8 per cent quarter-over-quarter to a new all-time record does not suggest a moderation in the growth trajectory.”

The analyst raised his 2026 estimates by 1 per cent while “nominally” lowered his 2027 forecast by 1 per cent.

“The main moving pieces are: 1) lower revenues in South America; 2) more than offset by higher revenues in Canada; 3) somewhat mitigated by lower product support margins in Canada,” he said. “3Q PS margins were particularly impacted by Canada reciprocal tariffs, which we think should be passed-through in subsequent quarters. Other than that, the factors impacting Canada PS margins were: 1) higher mix of lower margin oil sands work; 2) higher mix of lower margin parts (an area FTT has not typically played in); and 3) and new technicians are still ramping. The first two will likely persist, but we view that as a good problem to have, since any extra product support, is highly accretive to earnings. This dynamic should also not be surprising as the company/we discussed this last quarter.

“[In] our last note ... we wrote: ‘On lower PS margins, we believe there is a fundamental misunderstanding of how ROIC works. While the company could trade off some margin for share, particularly in more commoditized parts, higher PS revenues are still significantly accretive to EBIT margin and dollars and supports higher asset turnover. The strategy should sustain above market PS growth in the near-term [and a higher base of PS revenue further reducing] earnings volatility and supporting a re-rate.’”

He also predicted operating leverage “should eventually flip to a tailwind as technicians ramp to full capacity, which could take ‘a couple of quarters,’ while continued cost control (SG&A up 5 per cent year-to-date vs. revenue up 10 per cent), supports more ROIC expansion (already in the 19-per-cent range).”

Maintaining his “sector outperform” rating for Edmonton-based Finning’s shares, Mr. Goldman trimmed his target to $114 from $118. The average target on the Street is $122.

Elsewhere, other analysts making target revisions include:

* RBC’s Sabahat Khan to $124 from $129 with an “outperform” rating.

“While Finning’s Q3/26 results were mixed vs. consensus (details inside), we view the 6-per-cent share price pullback as an overreaction. The setup remains favorable with an increasingly constructive backdrop in Canada, and a generally supportive operating environment in South America,” said Mr. Khan.

* TD Cowen’s Cherilyn Radbourne to $123 from $124 with a “buy” rating.

“We see a 6-per-cent-plus share-price decline as an over-reaction to a minor miss, which we attribute largely to sales mix/normal business variability. The backlog hit a record $4-billion-plus despite very strong new equipment deliveries, and Finning has a large and diverse opportunity set across mining, energy and infrastructure, to which demand for prime/back-up power for Alberta DCs is additive not essential,” said Ms. Radbourne.

TD Cowen analyst Menno Hulshof thinks Strathcona Resources Ltd.’s (SCR-T) near-term outlook now “warrants a more measured valuation” following Monday’s announcement of its acquisition of fellow heavy-oil producer Greenfire Resources Ltd. (GFR-T) for about $2.4-billion in cash and stock.

“GFR adds attractive long-life inventory; offset is limited ops synergies, modestly higher leverage and a smaller float,” he said. “Meota’s initial wells are performing well, but we now expect a slower ramp following the change in operating protocol. We remain constructive long term, but see more need to reflect execution risk in the valuation.”

Mr. Hulshof thinks Greenfire possesses “many positive attributes but limited operational synergies.”

“We like the long-life inventory acquired, although our 2027 CFPS estimate declines 2 per cent,” he added. “With limited geographic overlap, we expect more than 50 per cent of the $75-million of annual synergies to come from G&A and lower funding costs.

“Leverage manageable, but does increase. 2027 net debt/cash flow increases to 1.1 times from 0.7 times. We remain comfortable with this level and, like SCR, see value in leverage within the capital stack. SCR has line of sight to an investment-grade credit rating within the next year.”

Also seeing Strathcona’s Meota Central project “still in show-me mode,” Mr. Hulshof cut his target for its shares to $45 from $52, keeping a “buy” rating. The average is $52.75.

“Our longer-term view remains constructive, but Meota execution, higher leverage, GFR integration and the smaller float warrant a more measured near-term valuation,” he concluded.

“SCR remains a differentiated offering, with above-average growth targets and a well-defined plan centered on drill-to-fill opportunities and brownfield SAGD expansions. The GFR acquisition adds substantial long-life oil sands inventory, albeit with limited operational synergies. Meota Central is now in show-me mode, with the revised ramp-up adding timing uncertainty. We continue to see strong value-creation potential given SCR’s history of creative deal-making. Longer term, execution of its organic growth plan and further WEF [Waterous Energy Fund] share distributions should support a larger, more institutionally relevant float, currently 36 per cent versus 43 per cent pre-GFR.”

Elsewhere, National Bank’s Maxim Sytchev trimmed his target to $116 from $118 with an “outperform” rating.

“‘Good AI’ day, shares up; ‘bad AI’ day, down. We get it,” said Mr. Sytchev. “At the same time, construction, oil sands, and mining body language around Canada was very constructive (not surprising given the company’s own record backlog and the same dynamic as we are seeing in terms of organic growth for engineers and all-time high backlogs for our construction cohort); Chile feels flattish short term after torrid growth and Argentina is on the cusp of something interesting. We don’t believe we need to start considering our positioning. The data centre opportunity in Canada is still ahead of us (ironically, a potential slowdown in the U.S. buildout due to shifting political winds and popular outrage might actually free up some capacity to be allocated here; TBD) while real assets (read oil, copper = clients) are likely not the worst place to be in inflation-impacted world. We reiterate our Outperform rating on FTT shares but nudge our target down ... as the slower pace of buybacks lifts the pro forma denominator in EPS.”

While noting the management team of Pet Valu Holdings Ltd. (PET-T) is “keeping a cautious tone as a challenging macroeconomic backdrop persists forcing consumers to constantly seek value,” Stifel analyst Martin Landry sees “the positive inflection in trends continuing into Q4/26 and also into 2027.

He raised his 2027 earnings per share forecast for the Markham, Ont.-based retailer by 3 per cent as well as his valuation multiple following Tuesday’s release of its third-quarter results, which saw earnings per share jump 10 per cent year-over-year to 44 cents, topping his (and the Street’s) 39-cent estimate.

Pet Valu’s revenue for the quarter also grew 3 per cent to $300-million, topping Mr. Landry’s $296-million estimate and the consensus projection of $295-million. Same-store sales grew 1.5 per cent, which also topped forecasts (0 per cent and 0.4 per cent, respectively) as both basket size and traffic saw gains.

“Several key trends seem to be inflecting in the right direction, including (1) traffic growth year-over-year, a first in four quarters, (2) healthy basket growth, up 1.4 per cent year-over-year, (3) deflationary trends easing which translated into the strongest average unit retail growth in several years, and (4) two consecutive quarters of double-digits EPS growth year-over-year,” Mr. Landry said.

“Management tweaked its annual guidance by (1) narrowing 2026 same-store-sales growth to a pace of 0-1 per cent year-over-year (0-2 per cent previously), (2) reducing new store openings by 3 to 37, (3) increasing EBITDA margin by 50bps to 21.5 per cent and (4) increasing adjusted EPS growth to a low-single-digit year-over-year (stable previously). Management discussed post quarter trends pointing to same-store-sales growth on pace with the 1.5 per cent growth realized in Q3/26. This is better than our previous expectations of 0.5 per cent and consensus of 0.8 per cent for Q4/26.”

In a client note, Mr. Landry also emphasized personalized offers to customers are “showing encouraging signs.”

“Towards the end of Q3/26, Pet Valu introduced personalized offers to build baskets and increase trips,” he explained. “Employees leverage loyalty data to upsell customers with a personalized promotion based on the customer profile and purchasing patterns. Emails with personalized promotions are also used to draw customers’ attention. Early signs are encouraging and expected to improve as employees become more comfortable using the data and applying it at checkout.

“Introducing our 2028 forecasts. We introduce our 2028 estimates which are calling for an increase of 11 per cent year-over-year, slightly higher than our 9-per-cent growth expected in 2027. We expect Pet Valu to have fully cycled the high fuel costs which should create fewer headwinds. In addition, we expect the company to continue to be active on its share buyback.”

Reaffirming his “buy” rating for Pet Valu shares, Mr. Landry increased his target to $27 from $23 to “reflect the positive trends inflecting and shorter time horizon to our forecasts.” The average on the Street is $25.

“Shares of Pet Valu trade at 12-times forward earnings, four turns lower than the company’s 3-year average. We see the potential for the company to grow its earnings at 10 per cent annually in a sustainable way under a normal economic environment. Hence, PET’s shares trade at a PEG ratio of 1.2 times, a reasonable level in our view, given the defensive characteristics of the industry,” the analyst said.

Elsewhere, others making target revisions include:

* National Bank’s Vishal Shreedhar to $28 from $24 with an “outperform” rating.

“We see PET’s valuation re-rating higher, possibly meaningfully, should PET demonstrate consistent execution against a reasonable growth framework of low single-digit sssg and low double-digit EPS growth. We note that PET has attractive fundamentals including solid margins (National Bank’s 2026 estimated EBITDA margin is 21.5 per cent), and high ROIC (NBCCM 2026 estimated ROIC is 18.5 per cent), which are supportive of higher valuation,” said Mr. Shreedhar.

* Desjardins Securities’ Chris Li to $28 from $26 with a “buy” rating.

“Against a backdrop of highly value-seeking behaviour and intense but rational competition, PET’s solid results reflect its successful commercial initiatives, including improvement in hardlines, resulting in SSSG of 1.5 per cent (vs our 0.3 per cent). At 13 times FY27 EPS (vs 15 times average), further valuation improvement is possible assuming a return to consistent low-single-digit SSSG and high-single-digit EPS growth next year. Macro improvement is key.”

* TD Cowen’s Cheryl Zhang to $27 from $24 with a “buy” rating.

“Q3 results were strong, highlighted by improving SSSG, share gains, and margin resilience despite a still-challenging consumer and cost backdrop. Valuation has lifted from recent troughs, but we still see attractive risk-reward (13.5 times NTM [next 12-month] consesnsus EPS less than 15.2 times 2yr avg) given the favourable long-term growth thesis and strong FCF generation supporting meaningful return of capital ($50-million buybacks year-to-date),” she said.

* RBC’s Irene Nattel to $27 from $24 with an “outperform” rating.

“Q3/26 results a whisker above forecast on solid execution of strategies to drive revenue despite consumer value-seeking behaviour, good cost containment, and timing of $3-million gain on re-franchising,” she said. “2026 guidance nudged upward (EBITDA margin up 50 basis points to 21.5 per cent, EPS to low single-digit growth), with early Q4 trends tracking consistent with Q3. We reiterate our view that share price/valuation already reflects current state of consumer demand/SSS, understates PET’s solid fundamental positioning, capital-light model and high ROIC/FCF.”

In other analyst actions:

* National Bank’s Cameron Doerksen hiked his target for Chorus Aviation Inc. (CHR-T) to $41 from $29 with an “outperform” rating. Other changes include: RBC’s James McGarragle to $42 from $39 with an “outperform” rating. The average target is $34.

“With solid expected free cash flow generation in the coming years (supported by steady cash flows from the Air Canada CPA which runs to 2035), Chorus intends to deploy $500-$550-million in capital over the 2026-29 timeframe, including $170-$220-million in flexible capital (beyond $140-million committed to dividends and share repurchases and $190-million in scheduled debt repayments) which could be used for organic growth, M&A (most recent acquisition closed early this month), further debt reduction (leverage at a comfortable 1.4 times) or additional buybacks/dividend increases (in Q3, Chorus repurchased 615k shares at an average price of $27.27 with another 256k shares repurchased in October),” said Mr. Doerksen. We see these capital deployments as supportive for the stock, which informs our Outperform rating.”

* TD Cowen’s Sam Damiani moved his CT REIT (CRT.UN-T) target to $18.50 from $18 with a “hold” rating. Other changes include: Desjardins Securities’ Lorne Kalmar to $19.50 from $19 with a “hold” rating and National Bank’s Giuliano Thornhill to $19.25 from $18.75 with an “outperform” rating. The average is $18.61.

“CT REIT continues to offer a steady growth profile, supported by an active development pipeline and additional value-creation opportunities as CTC [Canadian Tire Corp.] optimizes its store network. Our unchanged 4-per-cent AFFO/unit CAGR (2026E-28E), complemented by a 5-per-cent distribution yield provides a solid outlook, though we believe current valuation vs peers remains fair,” said Mr. Damiani.

* National Bank’s Alex Terentiew reduced his Endeavour Silver Corp. (EDR-T) target to $23 from $24 with an “outperform” rating. The average is $20.65.

“Endeavour reported adjusted EBITDA and CFPS broadly in line with our forecasts despite lower metal sales,” said Mr. Terentiew. “Offsetting the strong cost performance, we have trimmed our 2027 grade expectations marginally to reflect persistent elevated metal prices and possible impacts of applying lower cut-off grades (COG) in 2027. Like many companies in the sector today, additional lower grade tonnes we think could be mined in the near-term, with EDR taking advantage of strong margins from some lower grade tonnes, adding mine life and NAV, but potentially trimming near-term margins. As a result, our NAVPS remains largely unchanged (up 1 per cent), although our 2027 EBITDA estimate has decreased by 5 per cent, with the net impact a reduction in our target.”

* National Bank’sMohamed Sidibétrimmed his target for shares of Equinox Gold Corp. (EQX-T) to $22 from $23, keeping an “outperform” rating. The average is $24.03.

“We are updating our model following Equinox Gold’s Q3/26 results and the conference call,” said Mr. Sidibé. “On the call, EQX noted that the reason it pointed to the low end of the production range of 870-920 koz is due to some tensions at Greenstone, Valentine and Mesquite, offset by Musselwhite, Nicaragua and Camino Rojo. As a result, we have trimmed our production estimates at Greenstone and Mesquite in Q4/26, while we remain comfortable with our Valentine estimate. We now forecast 2026 production of 874 koz from 886 koz previously at 2 per cent higher AISC of $2,018/oz ($1,984/oz), slightly above the top end of the guidance of $1,900-$2,000/oz.”

* TD Cowen’s David Kwan trimmed his HEALWELL AI Inc. (AIDX-T) target to $1.50 from $1.75 with a “buy” rating. The average is $1.81.

“AIDX has been busy strengthening its platform, as it better positions itself to cross-sell its highly validated AI solutions into its 70+ global healthcare solutions customer base, but the pace of marquee wins has lagged, which has hindered revenue growth this year. We expect sales cycles to improve next year, which should help boost growth and margins,” said Mr. Kwan.

* TD Cowen’s John Mould bumped his Hydro One Ltd. (H-T) target to $59 from $58 with a “hold” rating, while Desjardins Securities’ Brent Stadler increased to $63 from $61 with a “buy” rating. The average is $57.20.

“Q3/26 EPS of $0.69 was below our estimate and consensus ($0.70). Soft Oct. peak demand may be a Q4 headwind. Capex plan provides incremental insight into gross Tx line est. costs (approximately $11-billion). ... At 24.3 times forward consensus P/E, H trades 4.6 times above its 10-year average valuation. We believe this justifies caution regarding the potential for further multiple expansion,” said Mr. Mould.

* National Bank’s Patrick Kenny cut his Keyera Corp. (KEY-T) target to $62 from $63 with an “outperform” rating. The average is $63.39.

“Based on the AEF downtime/maintenance impacts through mid-2027, our target taps down $1 to $62 while we reiterate our constructive outlook surrounding unsanctioned organic projects, representing 15-per-cent unrisked valuation upside. In conjunction with an attractive AFFO+ Yield of 22 per cent (Peers: 16 per cent), we reiterate our Outperform rating,” said Mr. Kenny.

* TD Cowen’s Tim James increased his target for Magellan Aerospace Corp. (MAL-T) to $46 from $45 with a “buy” rating. The average is $46.50.

“Solid Q3 results - 18-per-cent revenue growth and 33-per-cent EBITDA growth tells the story. Margin expansion continues. Balance sheet remains conservative and capable of driving incremental earnings not in our forecast. Headline metrics in line. We believe forecast growth, thematic appeal (Canadian defence spending/commercial aircraft recovery) and new business opportunities justify higher valuation,” said Mr. James.

* RBC’s James McGarragle bumped his NanoXplore Inc. (GRA-T) target to $2 from $1.75 with a “sector perform” rating. The average is $2.18.

“We see NanoXplore as approaching an inflection point, with foam commercialization now underway, FCF targeted to turn positive in F27, and recently announced management changes positioning the company for its next phase of growth. The clarity on foam’s commercial ramp should reduce investor uncertainty, though the path from a 40-tonne initial order to 500+ tonnes in-year requires strong operational execution. We view scaling volumes and margin expansion as key to operating leverage and FCF generation through F28, both of which we see as important catalysts,” said Mr. McGarragle.

* RBC’s Paul Treiber cut his Wellstar Technologies Corp. (WSTR-X) target to $8.50 from $10 with an “outperform” rating. The average is $9.31.

“WELLSTAR reported Q3 effectively in line with consensus. As the company laps the Ontario eReferral contract, we are recalibrating our organic growth estimates lower. Even so, we see sustained “rule of 40” performance, supported by multiple opportunities to drive continued double-digit organic growth. Maintain Outperform, as we think WELLSTAR is trading at an attractive valuation relative to growth,” said Mr. Treiber.