Inside the Market’s roundup of some of today’s key analyst actions
Desjardins Securities analyst Lorne Kalmar believes that home sales are about to improve and upgraded StorageVault Canada Inc. (SVI-T) to “buy” from “hold” in response.
StorageVault owns, manages, and rents self-storage and portable storage space to individual and commercial customers. Its business slows down when the housing market does.
“We are encouraged by the positive momentum in 2Q and are of the opinion that housing volumes are at/near a trough (June volumes were up 4% yoy, the first year-over-year increase since January), as a confluence of stabilizing rates, declining prices and an eventual resolution on the trade front should give buyers confidence to re-enter the market, which should in turn drive increased demand for self-storage,” Mr. Kalmar said in a note to clients.
He also notes that StorageVault currently trades at one of the widest valuation gaps versus its long-term average within the sector. “We believe the expected stabilization and eventual rebound in the housing market should set the stage for a return to double-digit earnings growth and drive a re-rate in the stock,” he said.
He raised his price target to C$5, up from C$4.25.
Elsewhere, Raymond James analyst Brad Sturges raised his target to C$5.25 from C$5 and reiterated an “outperform” rating.
Mr. Sturges noted another reason to be invested in Storagevault shares: “Importantly, institutional investor interest remains strong for Canadian storage real estate, as illustrated by Quadreal Property Group LP’s acquisition of Maple Leaf Self Storage Inc. … We note that there are other Canadian storage portfolios that have been speculated by private market participants to trade at some point this year, which could provide further positive valuation data points for StorageVault.”
The average analyst price target is C$4.92, according to LSEG data.
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Several analysts are nudging up their price targets on Rogers Communications Inc. (RCI-B-T) in the wake of the company’s second quarter results on Wednesday.
Results, overall, were relatively inline with analysts estimates. Adjusted EPS of $1.14 was slightly ahead of consensus of $1.12 and consolidated EBITDA of $2.362 billion was ahead of consensus of $2.353 billion.
TD Securities analyst Vince Valentini raised his price target to C$58 from C$57 and reiterated a “buy” rating, attributing the action to continued signs that wireless industry pricing and Average Revenue Per User trends are improving.
He said Rogers continues to look less expensive than peers and he is keeping Rogers as his top pick among telecoms.
Desjardins analyst Jerome Dubreuil raised his target to C$51 from C$49 and still rates Rogers as a “buy”.
“RCI is up 6% ytd, trailing the S&P/TSX’s 11% gain, but has rebounded meaningfully from the lows in April,” Mr. Dubreuil said in a note. “The recovery has been driven by broader market gains, but also by improved wireless pricing discipline and optimism around a potential MLSE stake monetization, although the latter may take time to materialize. While the Blackstone financing/MLSE transaction impacts free cash flow, we believe RCI has free cash flow upside potential, driven by lower capital intensity, notably as it completes its mid-split rollout in the east.”
Rogers recently closed a deal to sell a minority stake in its wireless infrastructure for $7-billion to a consortium led by New York-based Blackstone Inc.
Canaccord Genuity analyst Aravinda Galappatthige raised his price target to C$52 from C$48 and reiterated a “buy” rating.
“We consider Rogers’ Q2/25 results to be net positive due to a meaningful improvement in cable returns and effective cost containment. While wireless results took a small step down sequentially, this was anticipated, and we note early signs of stability in the broader market backdrop. Notably, while a transaction that would surface value in their Sports assets remains a central catalyst, comments on the call suggested that this could be more of an H2/26 event,” Mr. Galappatthige said.
The average analyst target is C$54.03.
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At least 20 analysts raised their price targets on Alphabet Inc. (GOOGL-Q) following quarterly results late Wednesday. Among the highest targets now is from JPMorgan, which went to US$232 from US$200.
At RBC, analyst Brad Erickson raised his target to US$220 from US$200 and reiterated an “outperform” rating.
Mr. Erickson commented, “GOOGL’s Q2 was a very good one even against an elevated bar with a beat across every revenue segment and margin upside ex the 1x legal settlement. Most constructively, 1) management painted a better picture on how AI is driving durable Search growth even as clicks aren’t necessarily benefiting or are even a focus where click volume loss has been a key perceived output of the AI bear case, 2) Cloud accelerated with big margin upside, capacity is still tight and raised capex means more upside & acceleration potential to come, and 3) the margin efficiency (particularly cloud), even amidst the higher depreciation should give investors more confidence that AI investment decisions are being made with clear return on investment signals in front of it. From here – the stock likely waits for Judge Mehta’s decision where barring a Chrome divestiture, the long-standing pressure on the multiple could increasingly ease.”
Citibank analyst Ronald Josey reiterated a “buy” rating and raised his price target to US$225 from US$203.
Mr. Josey had a bullish takeaway from the results: “Given improving Search monetization trends as Paid Click growth accelerated to +4% Y/Y, greater demand for GCP services (with the number of $250M+ deals 2x+ Y/Y), and expanding margins (ex-1x legal costs), we are incrementally positive on GOOGL shares. To be clear, the broader search market continues to evolve and remains among the most competitive ever as debate on the future of Search continues. But given Google’s Commercial and AI queries continue to grow as its AI surfaces support more use cases now that AI-O is global, AI Mode expands, and Gemini adoption ramps, Google’s newer products appear to be resonating as its strategy comes into view. Not to mention a faster product cycle. We were impressed with accelerating Cloud revenue and backlog as capacity constraints slowly improve, and ’25 CapEx guidance was revised +$10B given greater demand.”
The average analyst price target on Alphabet is now US$214.48, up from US$201.80 a month ago, according to the latest LSEG data.
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Raymond James analyst Luke Davis liked what he saw when reviewing second-quarter results from Whitecap Resources Inc. (WCP-T).
“The first look at the new and improved Whitecap was impressive all around, punctuated by outperformance on all metrics and strong operating momentum, setting up for a solid second half. Production volumes came in well ahead with the run-rate now comfortably in the 365 mboe/d range,” Mr. David said in a note to clients.
“In our view, the consolidated entity remains a best-in-class operator with top-tier assets, and we see further upside as they optimize capital allocation, monetize non-core assets, and realize deal synergies through ongoing integration. Whitecap remains on our Analyst Current Favorites list,” he said.
He raised his price target to C$14 from C13 and reiterated a “strong buy” rating.
The average price target is C$13.10.
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Scotiabank analyst Jonathan Goldman resumed coverage on NFI Group Inc. (NFI-T) with a “sector outperform” rating and C$22 price target.
“The company has been through the wringer over the past five years with COVID-19, the global supply chain crisis, a troubled seat supplier, and more recently tariffs. Shares are down 45% since early 2020,” commented Mr. Goldman to clients.
“With a favourable funding environment, record backlog, and good visibility on improved pricing, we view NFI as an execution story. The company is turning a corner on the seat supplier issue, with production set to ramp in 2H. Higher throughput and price/cost recovery should support an upcycle in profitability and cash generation through our forecast and accelerate deleveraging, which would be a catalyst for a re-rate.”
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National Bank Financial analyst Mohamed Sidibé reiterated an “outperform” rating on Cameco Corp (CCO-T) ahead of the company’s second quarter results. He also raised his target price to C$110 from C$100.
He expects earnings to come in slightly above the Street consensus, and sees Cameco benefiting from recent trends that are favourable to uranium and the nuclear power industry.
“Over the past few months and since the lows of ‘Liberation Day’ which provided attractive entry points on a valuation basis … we have seen an increasing amount of constructive developments within the nuclear power industry providing tailwinds to the uranium space. We have notably seen continuous material investments by large-cap tech companies in the U.S. to support nuclear as a source of low carbon energy to meet the surging demand from data centers, as well as the indication that Sprott Physical Uranium Trust would be a buyer in the spot market given its US$200 million bought deal announced,” the analyst said.
“As a result of this positive tailwind, multiples have expanded in the space and the positive momentum has benefited our uranium equities under coverage but mostly Cameco as the go-to-name in the space” he said.
The average price target is $95.07.
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Ventum Capital Markets analyst Amr Ezzat raised his price target on 5N Plus Inc. (VNP-T) to C$14 from C$11 while reiterating a “buy” rating. The company produces specialty semiconductors and performance materials.
“With Q2/25 results expected in early August, we anticipate a continuation of Q1 trends, namely sustained strength in Specialty Semiconductors driven by robust CdTe demand from First Solar and the ramp-up at AZUR Space,” Mr. Ezzat said in a note. “The 30% capacity expansion at AZUR remains on track and is expected to contribute in Q2.”
“The policy backdrop is also evolving. US solar incentives are shifting from direct subsidies to tariff-driven protection. While the form of support is changing, the outcome remains the same: First Solar’s competitive position is strengthening, and with it, 5N Plus’s standing as a critical supplier,“ the analyst added.
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In other analyst actions:
Highlander Silver Corp (HSLV-T): Ventum Financial initiates coverage with PT C$3.60 and a “buy” rating.
Kraken Robotics Inc (PNG-X): Canaccord Genuity raises target price to C$4 from C$3.50 but downgrades rating to “hold” from “buy”
Spin Master Corp (TOY-T): Stifel cuts target price to C$33 from C$38