Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
Believing valuation upside could be difficult to attain until its U.S. results improve and seeing a limited potential return to his target for its shares, RBC Dominion Securities analyst Darko Mihelic lowered his recommendation for Sun Life Financial Inc. (SLF-T<\/a>) to \u201csector perform\u201d from \u201coutperform\u201d previously.<\/p>\n \u201cSLF\u2019s underlying EPS was higher than our estimate and consensus, but the U.S. segment had higher than expected experience losses related to Dental and stop-loss,\u201d he said. \u201cWe do not expect material unfavourable stop-loss experience to persist into 2026, but we expect the Dental business to remain challenged throughout our forecast period; we lower our U.S. estimates.\u201d<\/p>\n Last week, the Toronto-based insurer reported underlying earnings per share for its third fiscal quarter of $1.86, exceeding both Mr. Mihelic\u2019s $1.82 estimate and the consensus projection on the Street of $1.83. All of the company\u2019s operating segments topped forecasts except its U.S. business, which was \u201cimpacted by unfavourable experience mostly in stop-loss and Dental\u201d with underlying earnings of $147-million falling 25 per cent from the second quarter and below the analyst\u2019s $200-million estimate.<\/p>\n \u201cExperience losses of $99 million (versus our $21 million loss estimate) reflected unfavourable morbidity experience in stop-loss and Dental and adverse long-term disability experience in employee benefits,\u201d he explained. \u201cU.S. Medicaid\/ Medicare Advantage dental sales were US$39 million this quarter, versus US$22 million last quarter and US$17 million last year. We expect U.S. underlying earnings growth of 10 per cent in both 2026 and 2027.\u201d<\/p>\n With those struggles, Mr. Mihelic\u2019s core EPS estimates for 2026 and 20227 fell to $7.87 and $8.55, respectively from $8.13 and $8.72. <\/p>\n He maintained his price target for Sun Life shares of $84. The average target on the Street is $92.51, according to LSEG data.<\/p>\n \u201cOur 12-month price target of $84 per share, supporting our Sector Perform rating, is based on a target P\/B multiple of 1.92 times our one-year forward book value per share estimate (including AOCI),\u201d he said. \u201cOur target P\/B multiple mainly reflects SLF\u2019s strong ROE and its highest medium-term ROE target among the group, although its earnings growth has been impacted by the underperformance of U.S. Dental and stoploss recently. We view SLF as having good fundamental earnings performance with low earnings volatility while having earnings growth close to the peer average in 2026.\u201d<\/p>\n =====<\/p>\n Cautioning investors \u201ctiming is everything,\u201d National Bank Financial analyst Patrick Kenny downgraded TransAlta Corp. (TA-T<\/a>) to a \u201csector perform\u201d recommendation from \u201coutperform\u201d previously after its third-quarter financial results fell short of his expectations.<\/p>\n \u201cBased on the accretion to our longer-term estimates from the 230 MW Keephills data centre contract, our target moves up $1 to $18, with a further $2-per-share valuation upside pending sanctioning of the Centralia project by year end,\u201d he said in a client note. \u201cThat said, with the stock trading above our pro forma Centralia life extension valuation of approximately $20, and uncertain timing surrounding definitive agreements and in-service dates associated with our 40-per-cent bluesky data centre valuation upside, we are moving back to Sector Perform from Outperform with a recommended entry point below our SOTP [sum-of-the-parts] valuation of $18 pending further Phase 2 data centre opportunity details\/clarity.\u201d<\/p>\n Shares of the Calgary-based power utility dropped more than 11 per cent on Thursday after it reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter of $238-million, falling short of both Mr. Kenny\u2019s $252-million estimate and the Street\u2019s expectation of $282-million. Full-year EBITA is now tracking lower than the company\u2019s guidance of $1.15-$1.25-billion.<\/p>\n TransAlta also announced the retirement of president and CEO John Kousinioris effective of April 30, 2026. He will be replaced by current executive vice-president of financial and CFO Joel Hunter.<\/p>\n \u201cTA remains focused on advancing its Alberta data centre strategy having secured a 230 MW Phase 1 allocation from the AESO at Keephills, with an executed load contract commencing in 2027, representing $1-per-share valuation accretion,\u201d said Mr. Kenny. \u201cMeanwhile, with 1.2 GW (Sheerness: 800 MW; Sundance 6: 401 MW) recently submitted into the interconnection queue, and the re-zoning of more than 3,000 acres at Sundance\/Keephills, the company is working towards an MOU to support its larger-scale data centre development strategy. Elsewhere, TA continues to progress engineering and commercial negotiations for the gas conversion\/life-extension project at its ~670 MW Centralia Unit 2 facility, targeting a definitive agreement by year-end, representing a further $2\/sh valuation upside.<\/p>\n \u201cWith the company\u2019s November Investor Day postponed to Q1\/26, and 2026 guidance to be released in conjunction with its Q4\/25 release in February, we have made modest adjustments to our 2026 estimates including AFFO\/sh (FD) at $1.43 (was $1.32) and D\/EBITDA at 4.2 times (was 4.4 times).\u201d<\/p>\n Mr. Kenny\u2019s new $18 target, up from $17, remains below the average target on the Street is $22.68, according to LSEG data.<\/p>\n Elsewhere, RBC\u2019s Maurice Choy increased his target to $24 from $20 with an \u201coutperform\u201d rating.<\/p>\n \u201cWhile market expectations heading into the quarter felt rather undisciplined, the share price underperformance post quarter still seemed like an overreaction. Beyond the financial impact of weaker-than-expected Q3\/25 results, we do not believe that there has been any material change to the market and company fundamentals, in that large load (not supply) is still being positioned to come on around 2027\/2028 (and forward price curves are indicative of this), and TransAlta is still on track to sign Alberta data center and Centralia agreements. As visibility of its growth emerges, the share price should improve,\u201d said Mr. Choy.<\/p>\n =====<\/p>\n RBC Dominion Securities analyst Maurice Choy thinks \u201cfavourable market fundamentals offer a broad range of possibilities\u201d for Enbridge Inc. (ENB-T<\/a>). <\/p>\n \u201cBesides delivering another set of financial results that reinforces the company\u2019s communicated growth outlooks, we like how the projects sanctioned during Q3\/25 highlight the breadth and depth of Enbridge\u2019s backlog of opportunities, as well as management\u2019s disciplined approach of allocating capital to projects with competitive risk-adjusted returns,\u201d he said.<\/p>\n \u201cAhead, investors should expect incremental brownfield opportunities to be unveiled and support Enbridge\u2019s low-risk 5-per-cent growth through the end of the decade (with dividends rising up to its cash flow growth rate), including the sanctioning of MLO1, which appears forthcoming, backed by the energy industry\u2019s cautious, but rising, optimism.\u201d<\/p>\n In a client note released Monday, Mr. Choy argued investors shouldn\u2019t overlook the Calgary-based company\u2019s secured capital program, which has risen to $35-billion with the recent addition of $3-billion of new projects, as well as \u201cdiscipline.\u201d<\/p>\n \u201cWhile some investors may have expected the Mainline Optimization Phase 1 (MLO1) to be sanctioned as part of the Q3\/25 results, we were impressed by how Enbridge was able to add a solid $3 billion of projects to its secured capital program even without MLO1 (which appears forthcoming before the year-end),\u201d he said. \u201cWe also like the range of the projects that were approved, which span multiple business lines of Enbridge\u2019s diverse energy platform. Moreover, we believe management\u2019s commentary relating to the relatively attractive risk-adjusted return of Pelican CO2 Hub highlights Enbridge\u2019s disciplined approach to allocating capital, from conventional energy infrastructure to lower carbon initiatives. <\/p>\n \u201cSpeaking of discipline, investors should expect a staged buildout of WCSB egress by Enbridge that is backed by sustainable market fundamentals. Enbridge remains on track to reach an FID on MLO1 this quarter, which provides 150,000 b\/d of additional egress in 2027. The company is also advancing Mainline Optimization Phase 2 (MLO2) towards a potential mid-2026 FID, with the planned 250,000 b\/d of incremental capacity (up from 150,000 b\/d previously) providing customers with a full-path solution by utilizing the existing Mainline system and the Dakota Access Pipeline.\u201d<\/p>\n While Mr. Choy trimmed his 2025 estimates to reflect its third-quarter results, he raised his 2026 forecasts \u201cpartly due to the recent utility rate case outcomes and Q3\/25 takeaways.\u201d He also introduced 2027 forecasts, including a 5-per-cent EBITDA and DCF\/share growth versus 2026 \u201cdriven by organic growth across all segments.\u201d<\/p>\n Keeping his \u201coutperform\u201d rating for Enbridge shares, the analyst raised his target to $72 from $67. The average is $68.83.<\/p>\n Elsewhere, other changes include: <\/p>\n * ATB Capital Markets\u2019 Nate Heywood to $72 from $71 with an \u201coutperform\u201d rating.<\/p>\n \u201dENB offers resilient, utility-like cash flow predictability with 80 per cent underpinned with inflation protection and 98 per cent from contracted cash flow,” said Mr. Heywood. \u201cGiven its expansive network of assets, the Company is structurally supportive of energy transition initiatives through its growing focus on natural gas and renewables. ENB maintains a significant secured growth program ($35-billion) and continues to prioritize its attractive leverage position. The current secured capital program is heavily weighted to the natural gas business lines (more than 80 per cent) and, as a result, is growing the proportion of EBITDA in its Natural Gas business lines toward 50 per cent of the aggregate business; however, we continue to see the Liquids Pipelines business as a strategic advantage, with critical infrastructure across North America. With the completion of the U.S. Utility acquisitions, ENB is pointing toward a greater focus on integration and optimizations near-term and aims for leverage to remain within its 4.5-5.0 times range (Q3\/25: 4.8 times). ENB has an attractive distribution history, with 30 consecutive dividend increases and the current dividend of $3.77 yields 5.6 per cent.\u201d <\/p>\n * Raymond James\u2019 Michael Barth to $76 from $74 with an \u201coutperform\u201d rating.<\/p>\n \u201cENB remains our preferred large cap pipeline name given a reasonable valuation, strong balance sheet, and clear momentum on growth projects across each of the segments,\u201d said Mr. Barth.<\/p>\n * CIBC\u2019s Robert Catellier to $71 from $70 with a \u201cneutral\u201d rating.<\/p>\n =====<\/p>\n Stifel analyst Martin Landry thinks the outlook for Lassonde Industries Inc. (LAS.A-T<\/a>) is \u201cbright with the new production facility in New Jersey set to open in 2027 and expected to drive margin expansion with efficient production.\u201d <\/p>\n \u201cHence, we feel investors should revisit Lassonde given its appealing valuation of more than 10 times forward earnings,\u201d he added.<\/p>\n Shares of the Rougemont, Que.-based food and beverage company rose almost 1 per cent on Friday after it reported quarterly revenue of $724-million, up 8.3 per cent year-over-year and up 4.8 per cent organically, when excluding currency fluctuations and the contribution from the acquisitions. That result fell in line with the expectations of both Mr. Landry and the Street.<\/p>\n \u201cQ3\/25 adjusted EPS came in at $5.84, up a strong 29 per cent year-over-year and much higher than our expectations of $4.82 and consensus estimate of $4.85,\u201d the analyst said. \u201cThe beat vs our expectation comes in part from a stronger gross margin than expected. Gross margin expanded by 80 basis points year-over-year to reach 27.8 per cent, the second-highest level in the last five years. Gross profit expanded on positive mix and the favourable impact of price increases. SG&A as a percentage of sales decreased 30 basis points year-over-year, mostly in line with our expectations. This translated into an EBITDA of $86 million, up 24 per cent year-over-year, and higher than our expectations of $83 million and consensus of $82 million. EBITDA margin reached 11.9 per cent, up 150 basis points year-over-year and the second-highest level of the last five years.<\/p>\n \u201cManagement has left its 2025 guidance unchanged, which calls for 2025 sales to grow at a pace slightly higher than 10 per cent. This suggests a deceleration in sales growth for Q4\/25 in relation to the year-to-date growth pace of 8-per-cent organically. Lassonde\u2019s organic revenue growth year-to-date was helped by the addition of a single serve line in the U.S., which the company will be lapping in Q4.\u201d<\/p>\n Mr. Landry emphasized Lassonde\u2019s management has” executed very well in recent years conducting a significant earnings recovery that saw trailing twelve months EPS double in less than three years.” <\/p>\n \u201cThe company entered into new categories, such as single serve formats and bag-in-a-box format, both of which are doing well for the company and providing growth opportunities in a juice market where volume growth opportunities are scarce,\u201d he noted. \u201cAdditionally, the acquisition of Summer Garden has been a success with EBITDA up more than 10 per cent, a year after the acquisition.\u201d<\/p>\n Seeing an \u201cappealing\u201d valuation, he raised his target to $265 from $255, keeping a \u201cbuy\u201d rating. The average is $268.<\/p>\n \u201cLassonde\u2019s shares trade at 10 times forward P\/E, a valuation that is difficult to understand given the company\u2019s growth prospects, healthy balance sheet and historical valuation,\u201d said Mr. Landry. \u201cThe company\u2019s 10-year P\/E average stands at 14 times; hence, the current valuation is depressed vs historical levels. Lassonde\u2019s valuation is also heavily discounted relative to its peers, trading at a discount of almost 60 per cent to peers, despite having similar growth prospects, by our model.\u201d<\/p>\n Elsewhere, other changes include: <\/p>\n * Desjardins Securities\u2019 Frederic Tremblay to $270 from $255 with a \u201cbuy\u201d rating.<\/p>\n \u201cContinued solid performance in 3Q and the 2025 sales growth outlook of \u2018slightly above 10-per-cent\u2019 showcase Lassonde\u2019s solid execution in a competitive and uncertain market environment. In addition, the healthy balance sheet is supportive of the company\u2019s strategic investments,\u201d he said.<\/p>\n * National Bank\u2019s Ahmed Abdullah to $247 from $237 with a \u201csector perform\u201d rating.<\/p>\n =====<\/p>\n Touting \u201crobust natural gas fundamentals,\u201d Desjardins Securities analyst Chris MacCulloch initiated coverage of Calgary-based Rockpoint Gas Storage Inc. (RGSI-T<\/a>) with a \u201cbuy\u201d recommendation on Monday.<\/p>\n \u201cWe view natural gas storage as a critical component of North American energy infrastructure that has been overlooked due to a lack of investment options,\u201d he said. \u201cThe business fundamentals are bullish given buoyant natural gas demand and structural capacity constraints, particularly in Rockpoint\u2019s two core operating areas of California and Alberta, which should provide continued tailwinds to storage contract rate.\u201d<\/p>\n He emphasized Rockpoint, which completed its initial public offering in late September, is \u201cuniquely positioned\u201d as the only publicly listed independent storage operator in North America, \u201cwhere natural gas supply and demand growth has significantly outpaced capacity in recent decades.\u201d <\/p>\n \u201cDue to a structural natural gas supply deficit and infrastructure constraints, Rockpoint\u2019s California assets have delivered a 23-per-cent CAGR in Take-or-Pay (ToP) storage rates since FY23 and we expect this trajectory to continue,\u201d said Mr. MacCulloch. \u201cIn Alberta, the recent introduction of LNG exports is expected to support Rockpoint\u2019s plans to gradually shift its storage capacity away from Short-term Storage Service (STS) agreements to ToP contracts, which achieved a 21-per-cent CAGR in storage rates since FY23. <\/p>\n \u201cBusiness model has one-way exposure to commodity price risk. One of the key differentiators for Rockpoint is the business\u2019s one-way exposure to commodity prices. Although the company does not have direct commodity price exposure, it retains upside to natural gas price volatility through its optimization strategy while longerterm contracting rates are influenced by natural gas price volatility and the evolution of seasonal price spreads.\u201d<\/p>\n Mr. MacCulloch set a $34 target for Rockpoint shares. The average is $31.50.<\/p>\n \u201cWe expect Rockpoint\u2019s valuation to converge with its peers as Brookfield\u2019s ownership position gradually unwinds and investors gain greater appreciation for the strategic importance of natural gas storage infrastructure in the North American energy market,\u201d he said.<\/p>\n Elsewhere, Scotia Capital\u2019s Robert Hope initiated coverage with a \u201csector outperform\u201d rating and $29 target, seeing an \u201cattractive growth outlook with upside.\u201d<\/p>\n \u201cRockpoint is the largest independent owner and operator of merchant natural gas storage in North America with assets in California and Alberta. The shares began trading on October 9, 2025, following the initial public offering (IPO) that was priced at $22.00 per share, after which affiliates of Brookfield Infrastructure Partners LP (BIP-N) reduced their stake in the business to 72 per cent. We believe Rockpoint\u2019s unique natural gas storage asset base is well positioned to generate sustainable earnings growth. Our $29.00 one-year target price is based on 9.6 times EV\/F2028E EBITDA, which implies a 4.1-per-cent dividend yield. This suggests some upside versus recent trading levels of 9.3 times EV\/F2027E EBITDA,\u201d said Mr. Hope.<\/p>\n =====<\/p>\n In other analyst actions: <\/p>\n * Jefferies\u2019 Surinder Talsania downgraded CGI Inc. (GIB-N<\/a>, GIB.A-T<\/a>) to \u201chold\u201d from \u201cbuy\u201d with a US$81 target, down from US$105. The average is $154.58 (Canadian).<\/p>\n * JP Morgan\u2019s Sebastiano Petti initiated coverage of Quebecor Inc. (QBR.B-T<\/a>) with an \u201coverweight\u201d rating and $56 target, exceeding the average on the Street of $50.13, while * Scotia\u2019s Mager Yaghi raised his target to $48 from $43.50 with a \u201csector perform\u201d rating..<\/p>\n * National Bank\u2019s Zachary Evershed raised his Alaris Equity Partners Trust (AD.UN-T<\/a>) target to $27 from $25 with an \u201coutperform\u201d rating. The average target is $25.04.<\/p>\n \u201cOn the back of two new investments and follow-ons, our target rises to $27 (was $25), based on a 14.1-per-cent discount rate. The value of Alaris\u2019s common equity investments now totals $325 million (cost basis), roughly 18 per cent of the portfolio. With a substantial return to target, minimal exposure to geopolitical headwinds, and robust execution continually growing and diversifying the partner portfolio, we rate AD Outperform,\u201d said Mr. Evershed. <\/p>\n * National Bank\u2019s Baltej Sidhu bumped his target for shares of Algonquin Power & Utilities Corp. (AQN-N<\/a>, AQN-T<\/a>) to US$7 from US$6.75 with a \u201csector perform\u201d rating. Other changes include: TD Cowen\u2019s John Mould to US$6.50 from US$6 with a \u201chold\u201d rating and Desjardins\u2019 Brent Stadler to US$7 from US$6.75 with a \u201cbuy\u201d rating The average is $6.57.<\/p>\n \u201cOur view remains that the highly talented team at AQN is the primary reason it could become a premium utility. This team aims to drive expected cohesion between all key stakeholders and achieve reasonable outcomes from the pending rate cases. If AQN fully improves its financial performance and becomes steady and predictable, it could become an engine of economic growth for its utility jurisdictions. While in the early innings, AQN is executing and has near-term catalysts,\u201d said Mr. Stadler.<\/p>\n * CIBC\u2019s Mark Jarvi raised his Atco Ltd. (ACO.X-T<\/a>) target to $67 from $64 with an \u201coutperformer\u201d rating. Other changes include: RBC\u2019s Maurice Choy to $59 from $53 with a \u201csector perform\u201d rating and National Bank\u2019s Patrick Kenny to $51 from $50 with a \u201csector perform\u201d rating. The average is $57.17. <\/p>\n \u201cThe S&L business continues to be a bright part of ATCO\u2019s business, supporting not only solid earnings to the company, but also positioning itself to capture future opportunities as housing, defence and broader economic activity picks up. While we see credence in having a better valuation for this business, ultimately, ATCO\u2019s share price is also materially driven by the market\u2019s level of desire to gain exposure to Canadian Utilities (CU) versus its utility peers. If this level of desire rises, and coupled with the strengthening S&L, ATCO shares could gain more investor attention,\u201d said Mr. Choy. <\/p>\n * In a report titled It\u2019s a short trip from the penthouse to the outhouse, Stifel\u2019s Ian Gillies raised his Badger Infrastructure Solutions Ltd. (BDGI-T<\/a>) target to $88 from $86 with a \u201cbuy\u201d rating. The average is $74.53.<\/p>\n \u201cMr. Rob Blackadar, CEO of Badger, is an LSU alum, and we believe he is very familiar with the quote in our title from legendary LSU coach Paul Deitzel. With the strong share price performance and operational improvements in mind, we expect the Badger team to remain acutely focused on delivering low-double-digit revenue growth and an improving margin profile, rather than resting on their laurels after delivering very significant operating improvement over the past four years. We believe the valuation of BDGI still has room to expand. The company trades at 7.5 times EV\/EBITDA in 2027E, and we believe the stock can trade at 9.0-10.0 times if the company continues to execute and achieve its strategic goals. We are increasing our target price to $88.00 on the back on higher estimates,\u201d said Mr. Gillies.<\/p>\n * RBC\u2019s Nelson Ng dropped his Boralex Inc. (BLX-T<\/a>) target to $36 from $38 with a \u201csector perform\u201d rating, while Raymond James\u2019 Daniel Magder cut his target to $38 from $39 with an \u201coutperform\u201d rating. The average is $37.78.<\/p>\n \u201cAlthough another weaker-than-expected quarter and lower realized contracted prices in France continue to be headwinds, we see tailwinds from the Q4\/25 completion of the battery storage projects in Ontario, and the potential contract awards in H1\/26 from bids into RFPs in Q4\/25. We are modestly reducing our Price Target to $36 (from $38) to reflect our view that there will be a slower pace of project completions in 2026\/27 period, limiting near-term growth,\u201d said Mr. Ng.<\/p>\n * RBC\u2019s Bart Dziarski raised his Brookfield Business Partners LP (BBU-N<\/a>, BBU.UN-T<\/a>) target to US$43 from US$39 with an \u201coutperform\u201d rating. Other changes include: Desjardins Securities\u2019 Gary Ho hiked his target to US$41 from US$34 with a \u201cbuy\u201d rating. The average is US$39.17.<\/p>\n \u201cWe continue to believe BBU remains in the early stages of its next harvesting and deployment cycle while simultaneously continuing to deliver on its opportunistic unit\/share buyback program. The company\u2019s corporate simplification announcement has recently re-rated the stock. Despite the move, we still see attractive upside in the shares as BBU\u2019s NAV compounding growth algorithm is expected to continue,\u201d said Mr. Dziarski.<\/p>\n * National Bank\u2019s Patrick Kenny increased his target for Brookfield Infrastructure Partners LP (BIP-N<\/a>, BIP.UN-T<\/a>) to US$36 from US$35 with an \u201coutperform\u201d rating, while TD Cowen\u2019s Cherilyn Radbourne raised her target to US$55 from US$53 with a \u201cbuy\u201d rating. The average is US$41.27. <\/p>\n \u201cQ3\/25 FFO was in-line, and earnings growth is reaccelerating, as telegraphed at BIP\u2019s recent Investor Day, driven largely by the data segment. The unit price has lifted off its recent low, but the yield\/valuation remains highly compelling, in our view. An ATM program should enhance BIP\u2019s financial flexibility and increase the public float\/liquidity of BIPC,\u201d said Ms. Radbourne.<\/p>\n * TD Cowen\u2019s Menno Hulshof raised his Canadian Natural Resources Ltd. (CNQ-T<\/a>) target to $54, exceeding the $53.22 average, from $53 with a \u201cbuy\u201d rating. Other changes include: Raymond James\u2019 Michael Barth to $56 from $55 with an \u201coutperform\u201d rating and Desjardins Securities\u2019 Chris MacCulloch to $52 from $52.50 with a \u201cbuy\u201d rating.<\/p>\n \u201cWe attended CNQ\u2019s investor open house on Friday in Toronto, which included preliminary 2026 guidance on the heels of 3Q25 financial results. The open house showcased CNQ\u2019s deep roster of development projects, which entail short- and long-term organic growth opportunities across the commodity spectrum that would be the envy of most companies, including the supermajors. Our target is now C$52.00 (from C$52.50), reflecting higher-than-expected ($500-million) preliminary 2026 capital spending,\u201d said Mr. MacCulloch.<\/p>\n * TD Cowen\u2019s Jonathan Kelcher cut his CAP REIT (CAR.UN-T<\/a>) target to $49 from $52 with a \u201cbuy\u201d rating. Other changes include: Desjardins Securities\u2019 Kyle Stanley to $47 from $48 with a \u201cbuy\u201d rating, RBC\u2019s Jimmy Shan to $50 from $54 with an \u201coutperform\u201d rating and CIBC\u2019s Dean Wilkinson to $45 from $50 with a \u201cneutral\u201d rating. The average is $48.82. <\/p>\n \u201cWe do not have a good explanation for the stock\u2019s underperformance since summer vs. peers or the broader sector,\u201d said Mr. Shan. \u201cFundamentals alone cannot explain it, certainly not a 5-per-cent SP NOI [same-property net operating income] print seen this quarter. What we do know is that CAP is now trading at the lowest P\/ NAV since 1997! CAP\u2019s relative multiple to commercial REIT peers has also tightened vs. historical average. We think CAP will step up its NCIB activity and on the fundamental outlook front, still expect positive (2.5-3-per-cent) NOI growth next year.\u201d <\/p>\n * National Bank\u2019s Patrick Kenny bumped his target for Canadian Utilities Ltd. (CU-T<\/a>) to $40 from $39. Other changes include: CIBC\u2019s Mark Jarvi to $43 from $42 with a \u201cneutral\u201d rating and RBC\u2019s Maurice Choy to $43 from $41 with a \u201csector perform\u201d rating. The average is $41.29. <\/p>\n \u201cWhile it is unfortunate that the hydrogen project appears to be deprioritized, particularly given the growth it offers to CU and Canada, we like CU\u2019s discipline in keeping with its strict investment criteria in assessing new opportunities. We also appreciate the clarity provided on the Yellowhead Mainline funding, with no common equity needed to finance the project. Along with supportive Q3\/25 results the reaffirmation of its capex plan, and 5.4-per-cent rate base CAGR profile, CU\u2019s stock thesis remains underpinned by its growing regulated business, with upside from ATCO EnPower (including via natural gas storage),\u201d said Mr. Choy. <\/p>\n * Stifel\u2019s Daryl Young cut his Cargojet Inc. (CJT-T<\/a>) target to $100 from $120 with a \u201cbuy\u201d rating. The average is $109.21.<\/p>\n \u201cCJT has been defying gravity for much of 2025 amid the broader freight recession, but its international revenues shifted sharply lower in Q3\/25 (down more than 20 per cent) on prolonged trade\/tariff upheavals. Management believes this is primarily a function of lower industry activity (canceled routes) versus being displaced by competitors. Importantly, the domestic network remained resilient with 6-per-cent growth year-over-year. However, management appears to have very little visibility into the timing of a recovery and is taking steps to manage capacity\/costs near-term. Investors have long-questioned where the floor is on CJT\u2019s major long-term contracts and whether the company could generate economic returns at those levels, current conditions will be a good litmus test. Looking forward, right-sizing of capex is freeing up cash flow for de-leveraging and potentially buy-backs, while the fleet has more than 20-per-cent available capacity to absorb recovery in volumes.\u201d<\/p>\n * CIBC\u2019s Hamir Patel raised his Cascades Inc. (CAS-T<\/a>) target to $13 from $12 with a \u201cneutral\u201d rating. Other changes include: National Bank\u2019s Zachary Evershed to $12 from $10 with a \u201csector perform\u201d rating and Scotia\u2019s Jonathan Goldman to $13.50 from $12 with a \u201csector outperform\u201d rating. The average is $13.08.<\/p>\n * TD Cowen\u2019s Jonathan Kelcher bumped his Chartwell Retirement Residences (CSH.UN-T<\/a>) target to $23 from $22 with a \u201cbuy\u201d rating. Other changes include: Scotia\u2019s Himanshu Gupta to $24 from $22 with a \u201csector outperform\u201d rating, Desjardins Securities\u2019 Lorne Kalmar to $23 from $22 with a \u201cbuy\u201d rating and Canaccord Genuity\u2019s Mark Rothschild to $22.50 from $21 with a \u201cbuy\u201d rating. The average is $22.50. <\/p>\n \u201cWe are surprised by the stock\u2019s reaction to an in-line 3Q result. CSH continues to be one of our best ideas in the space, owing to both its robust organic and external growth opportunity sets. We believe we are set to enter the early innings of rent growth acceleration in 2026, while from an acquisition perspective, there continues to be very strong momentum. With leverage in its target range, we also anticipate that CSH will recommence annual distribution increases in the near future,\u201d said Mr. Kalmar.<\/p>\n * TD Cowen\u2019s Tim James increased his Chorus Aviation Inc. (CHR-T<\/a>) target to $31 from $30 with a \u201cbuy\u201d rating. Other changes include: Scotia\u2019s Konark Gupta to $27 from $24 with a \u201csector perform\u201d rating, RBC\u2019s James McGarragle to $31 from $30 with an \u201coutperform\u201d rating and CIBC\u2019s Krista Friesen to $32 from $33 with an \u201coutperformer\u201d rating. The average is $29.67. <\/p>\n \u201cWe continue to believe capital return program, asset monetization opportunities, and eventual Voyageur disclosure will push share price gradually higher. No change to thesis. Air Canada CPA generated in-line results. Voyageur revenue (only disclosed metric) was below our forecast. 2025 Voyageur revenue guide biased lower, impact on consolidated is limited due to limited margin in foregone revenue,\u201d said Mr. James.<\/p>\n * TD Cowen\u2019s David Kwan cut his Constellation Software Inc. (CSU-T<\/a>) target to $5,300 from $5,700 with a \u201cbuy\u201d rating. Other changes include: Raymond James\u2019 Steven Li to $4,300 from $5,250 with a \u201cmarket perform\u201d rating, RBC\u2019s Paul Treiber to $5,600 from $6,000 with an \u201coutperform\u201d rating and Jefferies\u2019 Samad Samana to $4,500 from $5,850 with a \u201cbuy\u201d rating. The average is $5,135.50. <\/p>\n ” Constellation reported Q3 adj. EBITDA up 22 per cent year-over-year, above consensus. Similarly, FCF\/sh and FCFA2S have increased 29 per cent TTM [trailing 12 months] and 32 per cent TTM, respectively. Even so, shares have declined 24 per cent year-to-date, given concerns regarding \u2018AI disruption\u2019 driving reduced valuations across software stocks. With valuation at multi-year lows, we see compelling risk-reward on the stock,” said Mr. Treiber.<\/p>\n * National Bank\u2019s Matt Kornack trimmed his target for units of Dream Office REIT (D.UN-T<\/a>) to $20 from $21.50 with a \u201csector perform\u201d rating. The average is $19.19. <\/p>\n \u201cWhile Dream Office\u2019s print came in below expectations on lower NOI, this related to a timing gap between committed leases taking occupancy, with an expectation that these will contribute in Q4 2025 and throughout 2026. In the immediate term, this incremental revenue will neutralize the impact of a tenant departure at the REIT\u2019s sole U.S. asset, which is likely to be sold with proceeds being applied to debt repayment (although cap rates remain elevated in secondary U.S. markets, so proceeds will be limited). In the medium term, management noted improved leasing fundamentals that should translate into NOI growth albeit with a lag,\u201d said Mr. Kornack.<\/p>\n * CIBC\u2019s Mark Jarvi raised his Emera Inc. (EMA-T<\/a>) target to $72 from $71 with a \u201cneutral\u201d rating, while RBC\u2019s Maurice Choy increased his target to $76 from $70 with an \u201coutperform\u201d rating. The average is $68.65.<\/p>\n \u201cWe like that the updated five-year capex plan reinforces many positive themes relating to Emera\u2019s stock, including its solid 7-8-per-cent rate base CAGR that is underpinned by investments in the favourable Florida jurisdiction. Importantly, we anticipate investors will keep a close eye on the ongoing NSPI rate case to ensure that there is no repeat of the events in 2022, and that lessons have been learned by all parties involved. As the market looks beyond this rate case and the NMGC sale process, Emera stock attractiveness should become even more apparent,\u201d said Mr. Choy.<\/p>\n * CIBC\u2019s Krista Friesen raised her Exchange Income Corp. (EIF-T<\/a>) target to $93 from $85.50 with an \u201coutperformer\u201d rating. Other changes include: Scotia\u2019s Konark Gupta to $90 from $80 with a \u201csector outperform\u201d rating, Desjardins Securities\u2019 Gary Ho to $87 from $84 with a \u201cbuy\u201d rating, National Bank\u2019s Cameron Doerksen to $88 from $84 with an \u201coutperform\u201d rating Raymond James\u2019 Steve Hansen to $92 from $90 with a \u201cstrong buy\u201d rating, Canaccord Genuity\u2019s Matthew Lee to $85 from $80 with a \u201cbuy\u201d rating, BMO\u2019s Michael Goldie to $80 from $69.50 with a \u201cmarket perform\u201d rating, ATB\u2019s Chris Murray to $91 from $81 with an \u201coutperform\u201d rating, Paradigm\u2019s Razi Hasan to $86 from $82 with a \u201cbuy\u201d rating and Ventum\u2019s Amr Ezzat to $95 from $81 with a \u201cbuy\u201d rating. The average is $88.77.<\/p>\n \u201cOur positive view is based on the following: (1) Visibility on growth for 2026 supported by ramping contracts, a full-year contribution from Canadian North, and growth across other businesses like the company\u2019s U.S. matting business and the company\u2019s Regional One aircraft parts and leasing subsidiary; (2) we see growth for EIC beyond 2026, supported especially by demand growth in Northern Canada and further growth in the company\u2019s aerial surveillance business; and (3) potential for further M&A,\u201d said Mr. Doerksen. <\/p>\n * Raymond James\u2019 Stephen Boland reduced his Fairfax Financial Holdings Ltd. (FFH-T<\/a>) target to $2,900 from $3,050 with an \u201coutperform\u201d rating. The average is $2,880.16.<\/p>\n \u201cWith the shares experiencing their most meaningful pullback for some time \u2014 we suspect on fears of a softening insurance market \u2014 Fairfax continues to execute across all facets of the business. The equity portfolio continues to perform strongly, the fixed income portfolio remains conservatively positioned with optionality on spread capture, while the increasing diversity of the insurance operations has left Fairfax considerably less exposed to a softer North American P&C cycle,” said Mr. Boland.<\/p>\n * National Bank\u2019s Zachary Evershed trimmed his target for shares of GDI Integrated Facility Services Inc. (GDI-T<\/a>) to $32.50 from $33 with a \u201csector perform\u201d rating. Other changes include: Scotia\u2019s Jonathan Goldman to $32 from $33 with a \u201csector perform\u201d rating and TD Cowen\u2019s Derek Lessard to $31 from $30 with a \u201chold\u201d rating. The average is $33.90. <\/p>\n \u201cGDI\u2019s shares are down 26 per cent year-to-date on the weakening outlook on business spending. Although we continue to like GDI\u2019s long-term top-line opportunities and improving profitability\/ FCF, we believe our HOLD rating is still appropriate given the economic environment, and consequently, the lack of any clear near-term catalysts,\u201d said Mr. Lessard.<\/p>\n * Citi\u2019s Bryan Burgmeier cut his GFL Environmental Inc. (GFL-N<\/a>, GFL-T<\/a>) target to US$58 from US$61 with a \u201cbuy\u201d rating. The average is US$54.02.<\/p>\n \u201cWe\u2019re raising \u201925 EBITDA to reflect strong 3Q results and updated \u201925 guidance capturing higher-than-expected price and further M&A partially offset by lower commodity prices,\u201d said Mr. Burgmeier. \u201cGFL is set-up for another year of industry-leading growth in \u201926 as EPR tailwinds will add 75 basis points year-over-year to revenue growth, and M&A rollover is already up to 150 basis points. Accordingly, \u201926 revenue could \u201cstart with a 7,\u201d with margins up 50 basis points year-over-year implying double-digits year-over-year EBITDA growth, consistent with investor day targets. GFL has spent $650-million on M&A year-to-date, tracking for $700-$900-million target, adding $200-million annualized revenue. Mgmt cites \u201cseveral incremental deals in process\u201d with a \u2018very active\u2019 M&A pipeline. RNG could be largely neutral in \u201826 as unlapped production from \u201925 will be mostly offset by lower RIN prices. GFL beating & raising stands out as peers are mostly reaffirming outlooks (and trimming revenue) given trough commodity prices & tepid underlying volume; reiterate Buy.”<\/p>\n * RBC\u2019s Bart Dziarski raised his IGM Financial Inc. (IGM-T<\/a>) target to $61 from $55 with a \u201csector perform\u201d rating, while National Bank\u2019s Jaeme Gloyn hiked his target to $68 from $60 with an \u201coutperform\u201d rating. The average is $62.17. <\/p>\n \u201cQ3\/25 normalized EPS was above our forecast and consensus driven by one-time seed gains from ChinaAMC. We believe IG WM momentum is building and we now model positive net sales trends continuing while Mackenzie positive net sales trends are primarily driven by ETFs and retail mutual funds remain in outflows,\u201d said Mr. Dziarski.<\/p>\n * Scotia\u2019s Jonathan Goldman lowered his NFI Group Inc. (NFI-T<\/a>) target to $19 from $22 with a \u201csector outperform\u201d rating. The average is $20.83.<\/p>\n \u201cWe found the commentary on the call about the battery recall constructive,\u201d said Mr. Goldman. \u201cManagement did not provide a number for obvious reasons, namely that a tentative term sheet has been signed with the supplier and negotiations are ongoing to finalize an agreement. But both parties are \u2018motivated\u2019 to consummate a deal by year-end and management expects the size of the provision ($230 million) to \u2018dramatically decrease\u2019. We ran two scenarios \u2013 one based on management commentary and one based on precedent transactions \u2013 which suggests that the final impact to NFI could be in the range of $40 million to $70 million, pre-tax, which we think would be viewed positively relative to what the equity is discounting. For context, NFI\u2019s market cap is off $500 million since first disclosing the issue in September.”<\/p>\n * TD Cowen\u2019s Graham Ryding cut his Onex Corp. (ONEX-T<\/a>) target to $160 from $165 with a \u201cbuy\u201d rating. The average is $158.67. <\/p>\n \u201cNAV\/share and FRE were modestly below expectations, but we continue to forecast a solid growth for both metrics. Management guidance suggests the FRE ramp in 2026 may be pushed out somewhat, albeit visibility exists. We continue to view the Convex acquisition\/AIG partnership as positive for FRE growth, attention to asset management value, and visibility towards NAV,\u201d said Mr. Ryding.<\/p>\n * Scotia Capital\u2019s Jonathan Goldman raised his Savaria Corp. (SIS-T<\/a>) target to $26 from $25 with a \u201csector outperform\u201d rating. The average is $26.88.<\/p>\n \u201cSIS reported a second consecutive beat and raise as Savaria One (S1) margin expansion initiatives continue to offset tepid market conditions (Europe competitive environment, U.S. housing). We view the former as structural, which should drive outsized operating leverage when organic growth reaccelerates from trough levels; and 4Q commentary was constructive,\u201d said Mr. Goldman.<\/p>\n * National Bank\u2019s Patrick Kenny moved his target for Pembina Pipeline Corp. (PPL-T<\/a>) to $57 from $56 with an \u201coutperform\u201d rating. The average is $59.88. <\/p>\n * TD Cowen\u2019s Michael Van Aelst raised his Saputo Inc. (SAP-T<\/a>) target to $44 from $38 with a \u201cbuy\u201d rating. Other changes include: CIBC\u2019s Mark Petrie to $40 from $36 with an \u201coutperformer\u201d rating and Scotia\u2019s John Zamparo to $39 from $37 with a \u201csector outperform\u201d rating. The average is $38.78. <\/p>\n \u201cSaputo\u2019s key internal initiatives are playing out as expected, while market conditions are improving as hoped, save for perhaps the U.S., which could inflect positive in H2\/F26. Based on improvements in International, consensus estimates look highly achievable through F27 and perhaps conservative. We see a path for mid-teens EPS growth in F27 and F28 alongside an unlevered balance sheet and more predictable quarters, similar to 1H\/26,\u201d said Mr. Zamparo.<\/p>\n * Desjardins Securities\u2019 Frederic Tremblay trimmed his Telus Corp. (T-T<\/a>) target to $23.50 from $24 with a \u201cbuy\u201d rating. The average is $23.<\/p>\n \u201cWe have generally reduced our estimates on T (and are below consensus for 2026) to reflect the headwinds at TIXT and the continued challenging (although stabilizing) telecom environment. We have also increased our capex expectations to reflect AI investments and will be waiting for more details about the timeline and profile of the monetization of the initiative,\u201d said Mr. Dubreuil. <\/p>\n