Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
A group of equity analysts on the Street joined investors in applauding the second-quarter earnings release from Shopify Inc. (SHOP-N<\/a>, SHOP-T<\/a>), expecting a growth resurgence to continue.<\/p>\n The Ottawa-based e-commerce giant regained its position as the most valuable company in Canada<\/a> on Wednesday as its shares surged 21.5 per cent following reporting double-digit revenue growth and profit for the second quarter, and it projected continued growth in the coming months.<\/p>\n It now expects revenue to rise at a mid- to high-twenties percentage rate in the July-September quarter, while analysts on average estimated a rise of 21.54 per cent, according to data compiled by LSEG.<\/p>\n For the second quarter, Shopify reported revenue of US$2.68-billion, up 31 per cent from last year and above analysts\u2019 forecast of US$2.55-billion<\/p>\n \u201cShopify reported its largest beat in 2+ years and guided Q3 revenue above consensus,\u201d said RBC Dominion Securities analyst Paul Treiber in a client note. \u201cShopify saw broad-based momentum, with continued market share gains and no impact from tariffs. Shopify\u2019s increasing scale and rapid pace of innovation, in our view, improve investor visibility to long-term growth and suggest continued upside surprises and that Shopify\u2019s premium valuation is likely to be sustained going forward.\u201d<\/p>\n Mr. Treiber hiked his target to US$170 from US$145, maintaining an \u201coutperform\u201d rating. The average target on the Street is US$147.73, according to LSEG data.<\/p>\n “We believe Shopify warrants a premium valuation relative to peers, given Shopify\u2019s large TAM [total addressable market], take rate economics and deepening competitive moat,” he concluded.<\/p>\n Elsewhere, other analysts making target revisions include:<\/p>\n * National Bank\u2019s Richard Tse to US$180 from US$140 with an \u201coutperform\u201d rating.<\/p>\n \u201cThe results and outlook are consistent with our investment thesis where we see the Company executing on a number of growth opportunities (enterprise, scaling take rate, point of sale (POS), international, and B2B),\u201d said Mr. Tse. \u201cInterestingly, Shopify also noted it\u2019s not seeing any (material) impact from macro uncertainties and has limited exposure to the removal of de minimis exemptions (Shopify\u2019s exposure represents 4 per cent of global GMV with 1 per cent from China). Meanwhile, execution across all growth levers (noted above) under operating leverage is helping drive profitability and cash flow. Bottom line, we think it\u2019s still early days for many of those growth opportunities, which is why the name remains one of our Top Picks.\u201d<\/p>\n * Scotia\u2019s Kevin Krishnaratne to US$150 from US$115 with a \u201csector perform\u201d rating.<\/p>\n * BofA Global Research\u2019s Bradley Sills to US$185 from US$110, matching the high on the Street, with a \u201cbuy\u201d rating.<\/p>\n * Mizuho\u2019s Siti Panigrahi to US$150 from US$85 with a \u201chold\u201d rating.<\/p>\n * Wedbush\u2019s Scott Devitt to US$160 from US$115 with an \u201coutperform\u201d rating.<\/p>\n * Moffetnathanson\u2019s Michael Morton to US$110 from US$92 with a \u201cneutral\u201d rating.<\/p>\n * JP Morgan\u2019s Reginald Smith to US$179 from US$115 with a \u201cbuy\u201d rating.<\/p>\n =====<\/p>\n While investors weren\u2019t impressed with the second-quarter report<\/a> from Thomson Reuters Corp. (TRI-Q<\/a>, TRI-T<\/a>), pushing its TSX-listed shares lower by 10.1 per cent on Wednesday, TD Cowen analyst Vince Valentini thought the results were \u201csolid,\u201d topping his estimates and leading him to believe \u201cit can exceed 2025 margin guidance (despite no raise).\u201d<\/p>\n \u201cThe stock dipped because no new 2026\/2027 targets were provided (those will come with time in our view), and because a few comps have been weak recently,\u201d he said in a client note. \u201cTRI looks less expensive now, but not enough so to change our HOLD rating.\u201d<\/p>\n Before the bell on Wednesday, the Toronto-based content and technology company reported quarterly revenue rose 3 per cent year-over-year to US$1.78-billion for the period ending June 30, versus US$1.74-billion a year ago and analyst expectations of $1.79-billion according to LSEG data. Adjusted earnings per share of 87 US cents beat Wall Street expectations of 82 US cents.<\/p>\n \u201cThere is a clear pattern in our view of management being prudent and cautious with quarterly margin guidance , so we are leaving our Q3\/25 margin estimate at 37 per cent, despite management guiding to only 36 per cent owing to the timing of opex and integration costs,\u201d he said. <\/p>\n \u201cAnnual margin forecasts remain above guidance: We continue to believe that management is being conservative with its margin guidance for both 2025 (approximately 39 per cent) and 2026 (at least 50bp of expansion), so our estimates on that front have increased subsequent to the margin beat in Q2\/25, and we remain above guidance. We also continue to forecast a more material increase in margins in 2027, to 42.3 per cent. We believe the company will be able to automate more internal processes (in part using AI tools), so that margins can increase by more than the normal operating leverage amount (management consistently cites 110 basis point per year in margin expansion being possible when revenue growth exceeds 7 per cent).\u201d<\/p>\n Mr. Valentini \u201cslightly\u201d increased his full-year earnings projection with the beat, noting \u201cthis organic benefit flows into 2026\/2027 estimates, but we removed future estimated acquisition contributions, so headline revenue and EBITDA estimates came down slightly.\u201d <\/p>\n \u201cOur EPS estimates have increased across all time periods owing to strong organic margin performance (more detail below on how we expect results to exceed guidance), and new guidance for lower-than-expected D&A expense and interest expense in 2025,\u201d he added. \u201cThe combination of a lower share price and higher EPS estimates has us feeling a bit more comfortable with the valuation multiple (now at 34 times P\/E on 2027E, versus over 40 times at the peak), however, with many comps still trading well below TRI, we are not prepared to upgrade to buy.=<\/p>\n That led him to cut his target to $275 (Canadian) from $305, keeping a \u201chold\u201d rating. The average target is US$194.57.<\/p>\n “Although we are confident in TRI\u2019s guidance for 2025-2026, it may not be enough to continue upward momentum for the stock,” he concluded. \u201cWe believe that the valuation is full and that some passage of time and some sideways trading will be required before another leg up may be possible. This may leave TRI with asymmetric downside risk (from any macro, competitive, or execution negative surprises) versus near-term upside potential. As such, we maintain our HOLD rating.”<\/p>\n Elsewhere, Elsewhere, Scotia Capital analyst Maher Yaghi upgraded Thomson Reuters to \u201csector outperform\u201d from \u201csector perform\u201d with a US$200 target, rising from US$188.<\/p>\n \u201cTRI\u2019s stock is seeing a significant pullback [Wednesday] after what we viewed as inline but positive Q2 results,\u201d said Mr. Yaghi. \u201cWe believe the recent run-up in the stock could have built expectations that the company was going to increase guidance. After reviewing results, we have made marginal changes to our revenue and EBITDA estimates. We continue to believe that valuation multiples on a stock should be linked with fundamentals of the company and not necessarily be adjusted because of inclusion in a specific index. Having said that, we continue to believe that TRI is a very well-run company that is delivering meaningful revenue and cash flow growth supported by strong AI value enhancing product capabilities. We are maintaining our valuation metrics but rolling forward our basis to 2026, leading to our target price change. As we look forward and given the sizable pullback in the stock today, we are upgrading our rating on the stock to SO from SP given the more than 10-per-cent return potential vs our new target.”<\/p>\n Analysts making target adjustments include:<\/p>\n * RBC\u2019s Drew McReynolds to US$208 from US$215 with a \u201csector perform\u201d rating.<\/p>\n \u201cQ2\/25 results were slightly ahead of our forecast,\u201d said Mr. McReynolds. \u201cWhile 2025 guidance was not revised upwards (contrary to what we anticipated), the 10-per-cent pullback looks overdone within this context. Following slight downward revisions to organic revenue growth assumptions and a commensurate reduction to our target EV\/ EBITDA multiple (from 27.5 times to 27.0 times), we trim our price target from US$215 to US$208. We maintain our Sector Perform ranking as we continue to work through better understanding Agentic AI implications through the medium-term.\u201d<\/p>\n =====<\/p>\n Seeing “a more attractive risk-reward set-up as visibility on the revenue growth and de-levering trajectories improve,” RBC Dominion Securities analyst Ryland Conrad upgraded Premium Brands Holdings Corp. (PBH-T<\/a>) to \u201coutperform\u201d from \u201csector perform\u201d following second-quarter results that narrowly exceeded his expectations as well as the reiteration of its 2026 and 2027 outlook.<\/p>\n “Following our assumption of coverage with Q3\/24 results in November 2024, our focus has largely been three-fold: (1) the extent to which macro uncertainty would weigh on organic volumes; (2) visibility around the pacing of U.S. sales initiatives, particularly in light of the product launch\/customer onboarding delays observed throughout 2024 (with the 2024 outlook ultimately being withdrawn); and (3) progress on balance sheet delevering against the more challenging backdrop,” he explained. \u201cDespite still lingering macro uncertainty, we believe visibility on U.S. sales initiatives and the de-levering trajectory has meaningfully improved (while the FTM EV\/ EBITDA multiple at 10.0 times is largely unchanged), resulting in a more attractive risk-reward set-up.\u201d<\/p>\n Shares of the Vancouver-based food company jumped 6.7 per cent on Wednesday after it reported quarterly revenue of $1.915-billion, up 12.5 per cent year-over-year and topping both Mr. Conrad\u2019s $1.868-billion estimate and the consensus forecast of $1.871-billion. Adjusted earnings per share rose 4.2 per cent to $1.33, which was 2 cents lower than the analyst\u2019s projection but 3 cents above the Street\u2019s expectation.<\/p>\n In a report released before the bell, the analyst touted \u201cimproving visibility\u201d on the company\u2019s revenue growth trajectory and thinks \u201cwe have likely passed the peak on leverage.\u201d<\/p>\n \u201c.Management reiterated 2025 guidance indicating: (i) revenues are expected to be relatively consistent in Q3\/25 and Q4\/25; (ii) the $1.2-billion U.S. sales pipeline is unchanged with $200-million in annual run-rate revenues realized to-date versus $130-million exiting Q1\/25; (iii) while Sandwich OVGR has been modest in H1\/25 at 2.5 per cent year-over-year (particularly relative to Protein and Bakery at up 12.7 per cent and up 61.2 per cent, respectively), growth is expected to accelerate in H2\/25 as sales with Starbucks continue to steadily improve and incremental sales capacity in Tennessee is leveraged; (iv) one of the largest product launches in the company\u2019s history is slated for late Q3\/25 with the initial channel-fill supporting stronger year-over-year revenue growth; and (v) consumer behaviour has stabilized across both foodservice and retail channels in Canada (58 per cent of TTM [trailing 12-month] revenues) with the company generally catering to a more premium consumer that is less sensitive to the macro.<\/p>\n \u201cWe are encouraged by management\u2019s commentary around prioritizing balance sheet delevering (a shift in tone relative to 2024) with a commitment to reach 3.0 time net debt\/adjusted EBITDA excluding leases longer-term versus a medium-term target of 3.5 times to 4.0 times. While early progress has been made thus far with net debt\/adjusted EBITDA declining from 4.6 times as at Q1\/25 to 4.2 times as at Q2\/25 due in part to the sale leaseback of the company\u2019s recently completed Tennessee facility (with proceeds of $233-million), management expects to deliver further de-levering progress through H2\/25 driven by: (i) efforts to reduce inventory levels with $60-million of excess inventory relating to product launches scheduled for Q3\/25; and (ii) a sequential step-up in adjusted EBITDA growth with 2025 guidance implying year-over-year growth of 14.5 per cent to 17.9 per cent versus 9.8 per cent in H1\/25.\u201d<\/p>\n With his rating change and increases to his fiscal 2026 and 2027 financial projections, Mr. Conrad raised his target for Premium Brands shares to $108 from $100. The average on the Street is $110.25.<\/p>\n Elsewhere, others making adjustments include:<\/p>\n * Desjardins Securities\u2019 Chris Li to $103 from $98 with a \u201cbuy\u201d rating.<\/p>\n \u201cFollowing guidance reductions last year due to market conditions, we believe achievement of guidance this year, improving FCF and leverage reduction should restore investor confidence and generate incremental interest. 1H25 is off to a promising start, highlighted by continuing strength in US Specialty Foods, with growth expected to accelerate in 2H. While we believe trading could remain volatile in the near term given ongoing macro uncertainties, we believe PBH remains well-positioned for solid long-term growth,\u201d said Mr. Li.<\/p>\n * Scotia\u2019s John Zamparo to $100 from $91 with a \u201csector perform\u201d rating.<\/p>\n \u201cA 7-per-cent reaction to what we consider an in-line quarter and guide suggests significant pent-up interest from investors looking to own this stock because of the expected inflection in earnings growth,\u201d said Mr. Zamparo. \u201cOur concern remains predicting timing of significant contract wins, as well as a potential sale of some of PBH\u2019s Distribution business, is difficult. Furthermore, cost inflation can be passed on, though this carries a lag, and tariffs could meaningfully add to already significant beef inflation. Solid volume growth seems certain, but pricing could moderate gains somewhat. Leverage improved meaningfully this quarter, and a divestiture could significantly move the stock.\u201d<\/p>\n * National Bank\u2019s Vishal Shreedhar to $101 from $99 with a \u201csector perform\u201d rating.<\/p>\n =====<\/p>\n Following in-line second-quarter results, National Bank Financial analyst Dan Payne upgraded NuVista Energy Ltd. (NVA-T<\/a>) to an \u201coutperform\u201d recommendation from \u201csector perform\u201d previously, touting \u201ca very solid update from the company, reflecting the strength of execution in support of strong free cash flow and return on capital.”<\/p>\n After the bell on Wednesday, the Calgary-based company, which focuses on the Western Canadian Sedimentary Basin, reported quarterly average production of 73,595 barrels of oil equivalent per day, narrowly exceeding its revised guidance for the period and exceeding Mr. Payne\u2019s 73,500 boe\/ estimate. Diluted cash flow per share of 67 cents, topped the analyst\u2019s forecast of 59 cents by 14 cents.<\/p>\n \u201cThe highlight remains the strength of its organic execution (net of third-party downtime), which continues to maintain positive momentum in support of improving capital efficiencies to drive sustainable growth,\u201d he said \u201cNotably, the company continues to realize strong tailwinds to D&C costs (universally noted through drilling, completions & pad developments) to drive costs down by as much as 15-20 per cent in some cases, which in association with the strength of well performance (1,800 boe\/d, 35-per-cent liquids IP30-90 noted) is a direct translation to corporate sustainability.<\/p>\n \u201cWith that, it has stripped up to $100-million out of its 2025 & 2026 budgets (annual guidance revisions detailed in our estimates within), while maintaining its 10-per-cent production CAGR [compound annual growth rate] outlook (and similar resonance to the capital outlook through its plan towards critical mass at 125 mboe\/d). Within that, while the company expects continued third-party production disruption until September (both noted plants to be back on stream to support the entirety of its 43-well program online), should see Q3 production (70 mboe\/d; down 5 per cent quarter-over-quarter) re-inflect towards critical mass at 100 mboe\/d in Q4.\u201d<\/p>\n Calling it a \u201cvery solid\u201d update, Mr. Payne said his rating revision is \u201cstrictly a reflection of an improving sustainability of its growth outlook (increased cash flow on lower capex) and associated value.\u201d<\/p>\n He raised his target for NuVista shares to $18.50 from $16. The average is $17.54.<\/p>\n =====<\/p>\n While National Bank Financial analyst Jaeme Gloyn is taking \u201ca neutral view\u201d on Element Fleet Management Corp.\u2019s (EFN-T<\/a>) second-quarter release, he believes \u201cmanagement\u2019s confidence in delivering results at or above the high end of its guidance range will drive estimates and the share price higher.\u201d <\/p>\n \u201cThe in-line quarter delivered several positives including NIM expansion (even excluding GOS[gains on sales]) and contained opex growth, offset by somewhat disappointing service revenue and VUM [vehicles under management] declines,\u201d he said. \u201cNonetheless, our estimates move to $1.26 in 2025 (was $1.23) and $1.46 in 2026 (was $1.43), above management\u2019s $1.20-$1.25 guide. We reiterate our view that EFN is a \u2018core holding\u2019\u201d<\/p>\n After the bell on Wednesday, the Toronto-based automotive fleet manager reported quarterly revenue of $290-million, a gain of 6 per cent year-over-year and exceeding the projections of both Mr. Gloyn and the Street ($287-million and $285-million, respectively). Adjusted diluted earnings per share gained 8 per cent to 30 cents, matching expectations<\/p>\n \u201cKey takeaways from the Q2 results: 1) net revenue increased 6 per cent year-over-year, or 9-per-cent constant currency, in line with guidance. Net financing revenue was the highlight as GOS, pricing initiatives and lower cost of debt flow through. 2) Organic growth initiatives continue to drive results as i) vehicles under management increased 1 per cent year-over-year, originations of $1.9-billion roughly aligned with the Street\u2019s $2.0-billion (NBF $2.1-billion), ii) management highlighted a strong order backlog of $1.70-billion in Q2-25; 3) operating margin of 55.8 per cent, up 110 basis points quarter-over-quarter and 10 bps year-over-year, in line with the Street\u2019s 55.9 per cent (NBF 55.8 per cent). Notably, adjusted opex growth of 5 per cent year-over-year in Q2-25 (2 per cent ex-Autofleet) is expected to remain contained through 2025; 4) FCF per share of $0.40 increased 8 per cent year-over-year, beating the Street and NBF at $0.36. 5) Gain on sale of vehicles in ANZ and Mexico was up $7.6-million quarter-over-quarter and vs. the L4Q [last four quarter] average to $32 mln. 6) EFN repurchased 0.9 million shares in Q2-25 for Cdn$29 million. 7) Reiterated 2025 guidance with confidence in achieving at least the high end (except on originations) helped by reinstatement of bonus depreciation and a depreciating USD,\u201d explained Mr. Gloyn.<\/p>\n After raising his earnings expectations through 2026, the analyst bumped his target for Element Fleet shares to $47 from $46. The average on the Street is $40.36.<\/p>\n \u201cEFN is a low-risk, double-digit FCF and dividend grower, with blue-sky share price potential well into the $40s over the next two years, regardless of the market backdrop. We view growth as de-risked given 1) continued solid execution on organic growth strategies (e.g., win market share, penetrate self-managed fleet, increase share of wallet), 2) new revenue drivers such as insurance and SME\/mid-market expansions, and 3) mega-fleet wins not baked into guidance or consensus estimates,\u201d he concluded. \u201cMoreover, we expect management will gradually expand adjusted operating margins (20 bps to 120 bps annually) to drive profitable revenue growth.<\/p>\n \u201cIn addition, EFN still trades at an FCF Yield of 6 per cent on 2026 estimates, roughly 30 per cent above the yield of Canadian Financials and almost double the yield of Industrials with similar fundamentals (e.g., defensiveness, strong organic revenue growth, expanding profitability, solid FCF generation, low credit risk and barriers to entry). As EFN executes, we expect significant yield compression.\u201d<\/p>\n Elsewhere, TD Cowen\u2019s Graham Ryding raised his target to $42 from $41 with a \u201cbuy\u201d rating.<\/p>\n \u201cQ2\/25 EPS was in line with our estimates and consensus, while FCF came in above our estimate. Revenue also beat our forecast, while margins were in-line. Management now believes it will meet the high end, or exceed, its 2025 guidance. Our estimates have moved 2-3 per cent higher,\u201d said Mr. Ryding.<\/p>\n =====<\/p>\n In other analyst actions: <\/p>\n * Scotia\u2019s Mario Saric raised his Brookfield Asset Management Ltd. (BAM-N<\/a>, BAM-T<\/a>) to US$67.25 from US$66 with a \u201csector outperform\u201d rating.<\/p>\n \u201cWe think it still pays to be overweight at a time when the fundraising environment was described \u2018as good as ever,\u2019 Mr. Saric said. <\/p>\n * Scotia\u2019s Konark Gupta moved his Chorus Aviation Inc. (CHR-T<\/a>) target to $24 from $23.50 with a \u201csector perform\u201d rating.<\/p>\n \u201cQ2 results were largely in line and management maintained guidance, adjusted for FX noise in CPA. We are encouraged to see that CHR continues to redeploy excess capital following the third-party leasing business sale into shareholder-friendly initiatives such as deleveraging and share buybacks, while also most recently reinstating a quarterly dividend ($0.08\/sh) and announcing a small tuck-in M&A. Still, we remain neutral on the stock given our poor visibility on earnings inflection, considering CPA\u2019s weight in consolidated EBITDA,\u201d said Mr. Gupta.<\/p>\n * Desjardins Securities\u2019 Lorne Kalmar increased his CT REIT (CRT.UN-T<\/a>) target by $1 to $16.50 with a \u201chold\u201d rating, while National Bank\u2019s Giuliano Thornhill bumped his target to $15.95 from $15.75, maintaining a \u201csector perform\u201d rating. The average is $16.31.<\/p>\n * In response to in-line second-quarter results and the $67.5-million acquisition of workforce accommodations provider Right Choice Camps & Catering, National Bank\u2019s Zachary Evershed raised his Dexterra Group Inc. (DXT-T<\/a>) target to $14 from $13 with an \u201coutperform\u201d rating. The average is $12.54.<\/p>\n \u201cWe reiterate our Outperform rating as DXT remains our top pick in 2025, and we encourage investors to take another look as this show-me story trading at 5.6 times EV\/EBITDA continues to deliver,\u201d he said.<\/p>\n * Seeing it \u201cbuilding momentum with record adjusted revenue,\u201d Desjardins Securities\u2019 Gary Ho bumped his Diversified Royalty Corp. (DIV-T<\/a>) target to $4 from $3.75. The average is $3.97.<\/p>\n \u201c2Q results exceeded our expectations and consensus on adjusted revenue and normalized EBITDA,\u201d he said. \u201cMr. Lube\u2019s results surpassed our forecast with impressive 11.3-per-cent SSSG [same-store sales growth]. Oxford Learning also outperformed, delivering 6.5-per-cent SSSG. We are introducing our 2027 forecast. After incorporating the recent Cheba Hut transaction and a better Mr. Lube outlook, and rolling our valuation forward one quarter, our target price increases.\u201d<\/p>\n * Scotia\u2019s Jonathan Goldman lowered his Finning International Inc. (FTT-T<\/a>) target to $64 from $65 with a \u201csector outperform\u201d rating, while RBC\u2019s Sabahat Khan raised his target to $67 from $61 with an \u201coutperform\u201d rating. The average is $65.33.<\/p>\n \u201cWe\u2019re not sure how much to read into the negative share price reaction, which may have been impacted by noisy disclosures showing a headline miss \u2013 when in fact, results were in line and depressed by higher LTIP,\u201d said Mr. Goldman. \u201cBased on inbounds we got pre-q, there may also be some profit-taking with FTT shares up 60 per cent year-to-date and in uncharted territory. We felt people were fishing on the call for reasons to explain the selloff, which we think is overdone. The facts on the ground suggest we are still in the early stages of an earnings upcycle. In Canada, oil sands customers are spending again while construction remains at trough. Activity\/investment levels in South America remain robust while technician hiring continues (including 100 in 2Q and plan for 1,000 total). That may slightly dampen margins in the N-T as technicians ramp to productive capacity, but it also suggests the outlook is positive, and the company has good visibility with its mining customers.\u201d<\/p>\n * National Bank\u2019s Jaeme Gloyn raised his Goeasy Ltd. (GSY-T<\/a>) target to $265 from $255, exceeding the $228.11 average, with an \u201coutperform\u201d rating, while TD Cowen\u2019s Graham Ryding moved his target to $210 from $205 with a \u201cbuy\u201d rating.<\/p>\n \u201cWhat more could you ask for? We expect a positive reaction to the 4-per-cent adjusted EPS beat, improving credit and a more favourable outlook,\u201d Mr. Gloyn said. \u201cRevenues drove the beat, on the back of stronger than expected loan growth and a solid rebound in financial revenue yield that outperformed street and NBF estimates. GSY also delivered sequential charge-off and delinquency improvement that should continue to calm investor concerns regarding the credit picture and uncertainty regarding the impact of tariffs. Lastly, management is now guiding growth to the upper end of the 2025 range of $5.4-$5.7 billion while providing Q3-25 mini-guidance for loan growth and financial revenue yield that exceeds our prior estimate. Charge-off guidance for Q3-25 aligned with our prior estimates. As a result, our estimates in 2025 and 2026 tick higher.\u201d<\/p>\n * Desjardins Securities\u2019 Doug Young increased his Great-West Lifeco Inc. (GWO-T<\/a>) target to $55 from $52 with a \u201chold\u201d rating, while Scotia\u2019s Mike Rizvanovic moved his target to $61 from $59 with a \u201csector outperform\u201d rating. The average is $56.<\/p>\n “GWO\u2019s results in Q2 featured another solid quarter for Empower, notwithstanding some negative credit experience, which we believe looks to be well contained, as well as strength across the lifeco\u2019s other key operating segments,\u201c said Mr. Rizvanovic. \u201dWe were particularly encouraged by the new disclosure on Empower that highlighted the company\u2019s enhanced capabilities with low-fee index funds and access to private market investments, further enhancing its competitiveness in what remains a consolidating market with plenty of potential market share gains ahead, both organically and with more M&A. Coming out of the quarter we still have a very favorable view on GWO\u2019s trajectory for both EPS and BVPS growth, supported by an improving ROE that is well on its way towards the company\u2019s medium-term target of 19 per cent plus.”<\/p>\n * RBC\u2019s Darko Mihelic increased his IA Financial Corp. Inc. (IAG-T<\/a>) target to $151 from $142 with a \u201csector perform\u201d rating, while Desjardins Securities\u2019 Doug Young raised his target to $149 from $147 with a \u201chold\u201d rating. The average is $153.<\/p>\n \u201cIAG\u2019s Q2\/25 core EPS benefited from insurance experience gains but still a strong result in our view,\u201d he said. \u201cWe also view the strong AUM growth and higher than expected dividend increase positively. We increase our earnings expectations across the segments and include RF Capital acquisition impact starting in 2026. IAG has $0.9-billion capital available for deployment pro-forma RF Capital acquisition (and generates $650-million per year). We believe (but don\u2019t model) strong buyback programs can help IAG reach its medium-term ROE target by 2027 (or can deploy capital accretively?). We believe a slightly higher valuation multiple is deserved.\u201d <\/p>\n * RBC\u2019s Greg Pardy hiked his Imperial Oil Ltd. (IMO-T<\/a>) target to $108 from $110, remaining above the $105.53 average, with a \u201csector perform\u201d rating.<\/p>\n \u201cOur constructive stance towards Imperial Oil reflects its long-life, low- decline upstream portfolio, cash flow diversification via its refining and chemical segments, strong balance sheet, free cash flow generation, commitment to shareholder returns and solid operating performance,\u201d said Mr. Pardy.<\/p>\n * Stifel\u2019s Martin Landry increased his Kits Eyecare Ltd. (KITS-T<\/a>) target to $22 from $18 with a \u201cbuy\u201d rating. The average is $22.07.<\/p>\n \u201cKITS reported Q2\/25 results at the high-end of the company\u2019s guidance,\u201d he said. \u201cThe company\u2019s rapid growth continues with trailing twelve months revenues up 35 per cent year-over-year and TTM [trailing 12-month] EBITDA margins of 5.8 per cent up 325 basis points year-over-year. Several initiatives are getting traction and growing at 50-per-cent-plus annually including (1) digital progressive glasses, (2) premium lenses (3) insurance partnerships and (4) KITS branded contact lenses. These initiatives are also contributing to margin expansion, each with gross margins above 50 per cent. With a market share of 2 per cent of the online eyewear market and a market share more than 1 per cent of the entire North America eyewear industry, KITS has a long growth runway ahead. The company\u2019s balance sheet is getting stronger with a growing cash position and limited CAPEX needs in the near-term, providing management with ample flexibility. We increase our target on higher forecasts and higher valuation multiples to reflect strong execution and increased visibility on our forecasts.\u201d<\/p>\n * National Bank\u2019s Gabriel Dechaine trimmed his Manulife Financial Corp. (MFC-T<\/a>) target to $47 from $48 with an \u201coutperform\u201d rating. The average is $48.15.<\/p>\n * \u201cBiding time for an inflection point,\u201d National Bank\u2019s Maxim Sytchev moved his RB Global Inc. (RBA-N<\/a>, RBA-T<\/a>) target to US$113 from US$112, keeping a \u201csector perform\u201d rating, while RBC\u2019s Sabahat Khan raised his target to US$132 from US$125 with an \u201coutperform\u201d rating. The average is US$116.23.<\/p>\n \u201cThis was a good print, no argument there (even construction-related decline of 1 per cent excluding Yellow was better than expected\/feared and newly won contracts in UK\/AUS will start to contribute as time progresses; legacy IAA continues to surprise to the upside, operationally, and as a result, financially),\u201d said Mr. Sytchev. \u201cThe Street, however, is modeling EBITDA of $689-million in H2\/25E vs. $662-million implied at the midpoint of guidance (which does not account for hurricane-related volumes; we guesstimate this to be in the $10-million range of EBITDA). Net-net, the positive earnings revision momentum is likely to moderate in the short term, partly removing a quantitative catalyst as a result; while 12 months ago, we also could make an (easy) argument that operational improvements would be married with multiple expansion, the latter is more challenging now as Copart\u2019s NTM [next 12-month] P\/E multiple compressed from 35 times to 27 times, in line to where RBA is sitting on 2026E. We would like to get a better sense of EPS acceleration, contingent on a better transactional backdrop in the legacy construction space.\u201d<\/p>\n * National Bank\u2019s Don DeMarco hiked his SSR Mining Inc. (SSRM-T<\/a>) target to $24.75 from $20 with a \u201csector perform\u201d rating. The average is $14.21.<\/p>\n