Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
Citing its valuation, Raymond James analyst Michael Barth upgraded Canadian Natural Resources Ltd. (CNQ-T<\/a>) to \u201coutperform\u201d from \u201cmarket perform\u201d previously, seeing \u201cdisciplined growth ahead.\u201d<\/p>\n \u201cWe downgraded CNQ to Market Perform in late-March. Since then, the stock has sold off approximately 13 per cent and underperformed the peer group by 10 per cent, which is a relatively big move in a short period of time for one of the most stable upstream businesses in the country,\u201d he explained. \u201cThe stock is now nearly back to the levels we saw before the Iran conflict started. Over the same period, we\u2019ve seen SCO premiums start to emerge, which is largely a CNQ-specific tailwind, and causes us to revise our FY26\/27 AFFO estimates higher. With higher estimates (and continued macro tightness), we have better visibility to CNQ achieving their long-term net debt target by the end of the year while simultaneously materially increasing shareholder returns. Our target moves higher, and we are upgrading the stock to Outperform as we once again see decent value in the shares.”<\/p>\n In a client report released before the bell titled Steady Eddie, Mr. Barth said the company\u2019s first-quarter results<\/a>, which were released Thursday morning, displayed adjusted funds from operations and production that were \u201cmore-or-less in-line\u201d with expectations, and he continues to see \u201csolid execution\u201d from CNQ. <\/p>\n \u201cWhile the FY26 capital budget remains unchanged, recent performance in both the Thermal and Mining businesses looks promising,\u201d he said. \u201cIn Thermal, Jackfish operated above nameplate capacity and recent well results from new pads at Pike 1 are promising as CNQ progresses on the Jackfish expansion and Pike 2. While still too early to make any notable calls on solvents, we note that CNQ continues to experiment with solvent applications, and that too could represent some upside to our medium-term estimates. We also note that Mining production in April averaged 630 mbbl\/d with upgrader utilization of 106 per cent, which is stronger than we expected.<\/p>\n “SCO premiums creating some solid near-term tailwinds. In addition to the fact that CNQ is producing more SCO (strong 2QTD performance so far), we note that SCO has started trading at a notable premium to WTI in April, and that premium persists today. Given the high distillate cut in SCO and supportive distillate macro dynamics, we expect SCO will likely continue to trade at a premium for the rest of FY26 and perhaps into FY27. We\u2019ve revised our realized pricing estimates higher for the Mining business, and that helps drive a modest increase to our AFFO estimates.”<\/p>\n Mr. Barth raised his target for CNQ shares to $67 from $65. The average target on the Street is $67.71, according to LSEG data.<\/p>\n Following a first-quarter earnings beat, National Bank Financial analyst Dan Payne raised his rating for Enerflex Ltd. (EFX-T<\/a>) to \u201coutperform\u201d from \u201csector perform\u201d in a move \u201cmeant to acknowledge the expanding and accelerating runway for new high-impact growth opportunities (compression through power) that should continue to contribute outsized value (through a higher implied multiple) as they are manifested.\u201d<\/p>\n Shares of the Calgary-based company, which is one of the world\u2019s largest manufacturers of natural gas compression equipment, jumped 5.5 per cent on Thursday after it reported quarterly revenue of $584-million, down 7 per cent sequentially but up 6 per cent year-over-year and above Mr. Payne\u2019s $553-million estimated. Adjusted EBITDA grew 11 per cent from the previous quarter and 21 per cent from the same period in fiscal 2025 to $137-million, exceeding the analyst\u2019s $126-million projection.<\/p>\n \u201cConsistency and quality has been established, while solid activity levels and continued high-grading of margins (through new business, synergies & efficiencies) continues to be noted, with contributions from; a) Engineered Systems ($328-millionrevenue, down 3 per cent quarter-over-quarter & 18.9-per-cent gross margin, up 130 basis points), with its backlog notably expanding (see below), and b) Energy Infrastructure ($149-million, down 5 per cent quarter-over-quarte & 63.8 per cent, up 760 basis points, including non-recurring contract bonus\u2019 paid), which in association with AMS [After-Market Services] ($107-million, down 19 per cent quarter-over-quarter & 20.6 per cent, down 110 basis points), continued to deliver structural & high-margin returns.<\/p>\n \u201cWe note that its exposures in the Middle East (10-15 per cent of its gross margins) showed resilience (uninterrupted) through the initiation of the regional conflict (not necessary to discount, relative to how they are priced within, at this time).\u201d<\/p>\n The analyst also emphasized Eneflex\u2019s free cash flow is \u201cnormalizing\u201d and \u201ccontinued to be redirected towards shareholders through its base dividend and tactical buy-back, while its net debt stayed intact net of working capital build with meaningful option-value being established through lower leverage.\u201d<\/p>\n Following raises to his forecast, Mr. Payne hiked his target for the company\u2019s shares to $42.50 from $31.50. The average is $37.96.<\/p>\n \u201cThe business has stabilized and inflected higher in association with meaningful structural tailwinds from thematic market opportunities (i.e., data centres\/power & natural gas + synergies), and the visibility of which should continue to provide tailwinds to growth and value (incl. continued multiple expansion) in opposition to an otherwise static environment. EFX trades at 5.4 times 2027 estimated EV\/EBITDA (vs. broader peers at 6.7 times) on leverage of negative 0.4 times (vs. broader peers at 1.3 times),\u201d he said.<\/p>\n Elsewhere, other analysts making target adjustments include: <\/p>\n * Raymond James\u2019 Michael Barth to $45 from $40 with an \u201coutperform\u201d rating. <\/p>\n \u201cWe get that EFX performed well into the quarter, but we still believe that market underreacted to a very strong 1Q print where Adj. EBITDA beat, ES bookings beat, and forward-looking commentary was constructive. Our estimates move higher and our target follows. On our new estimates, we have EFX trading at a 12-per-cent sustaining FCF yield in 2027, with what we see as plenty of upside beyond that. We reiterate our Outperform rating, and continue to view EFX as offering one of the best risk-adjusted returns in our coverage universe,\u201d said Mr. Barth. <\/p>\n * ATB Cormark\u2019s Tim Monachello to $46 from $42 with an \u201coutperform\u201d rating.<\/p>\n \u201cWe believe EFX represents a compelling investment opportunity, offering exposure to a robust outlook for natural gas production growth with minimal direct exposure to gas prices and upside to a sizable, and rapidly growing opportunity in modular power generation,\u201d said Mr. Monachello.<\/p>\n * TD Cowen\u2019s Aaron MacNeil to $44 from $41 with a \u201cbuy\u201d rating. <\/p>\n \u201cWe are increasing our price target \u2026 to reflect our increased estimates in the context of the company\u2019s growing power demand opportunity,\u201d said Mr. MacNeil. \u201cEnerflex is deserving of a premium valuation, in our view, given its contracted cash flows and direct leverage to growing natural gas\/power demand. EFX remains our Top Pick in the Energy Services sector.\u201d <\/p>\n * RBC\u2019s Keith Mackey to $31 from $26 with an \u201coutperform\u201d rating.<\/p>\n \u201cEnerflex reported a solid quarter, with EBITDA ahead of our expectations. We remain bullish on EFX shares given exposure to positive macro trends, expanding ROCE\/financial metrics, and self-help potential. … Enerflex is on RBC\u2019s Global Energy Best Ideas list,\u201d said Mr. Mackey.<\/p>\n In response to Canadian miner Sherritt International Corp. (S-T<\/a>) announcement on Thursday of the suspension of its operations in Cuba and the resignation of three directors<\/a> after the U.S. expanded sanctions on the communist Caribbean island, National Bank\u2019s Shane Nagle moved his rating to \u201cunder review\u201d from \u201csector perform\u201d previously, seeking \u201cmore clarity on a pathway to secure additional funding and\/or a plan to restart.\u201d<\/p>\n \u201cRefinery operations in Fort Saskatchewan are continuing to produce finished nickel and cobalt and by-product fertilizer. Inventories are sufficient to continue processing until mid-June,\u201d he said in a client note. \u201cThe Moa JV and Cuban power operations account for 76 per cent of our NAV. While Sherritt is generating sufficient cash flow from its Fort Saskatchewan refinery for the time being, those operations are vertically integrated with its Cuban operations and will be forced to shut down in mid-June.\u201d<\/p>\n Mr. Nagle emphasized the Toronto-based company will likely require additional Liquidity Required if Shutdown Persists<\/p>\n \u201cFollowing the recent $43.5-million equity financing, we estimate sufficient cash in Canada to repay amounts owing on its RCF ($69-million),\u201d he said. \u201cThe next interest payment on its $266.2-million of Senior Secured 9.25-per-cent Notes is due in October and the Company will require additional financing, restructuring and\/or some sort of collaborative agreement between the U.S., Cuba and Canada to restart nickel and cobalt production – which appears unlikely under current circumstances.\u201d<\/p>\n Mr. Nagle removed his target for its shares. It was previously 30 cents.<\/p>\n Seeing a \u201ccompetitive leasing environment,\u201d Raymond James analyst Brad Sturges moved his rating for Boardwalk REIT (BEI.UN-T<\/a>) back to an \u201coutperform\u201d from \u201cstrong buy\u201d previously while also touting a \u201ccompelling value opportunity.\u201d<\/p>\n \u201cIt appears that potential near-term positive catalysts to narrow the REIT\u2019s estimated deep NAV\/unit discount may be more limited in a more competitive leasing environment, in our view,\u201d he explained. \u201cWe also suggest that greater forecasted Alberta property taxes YoY may constrain Boardwalk\u2019s results starting in 2H26. That said, we are forecasting Boardwalk to generate low-single-digit 2026E SP-NOI and AFFO\/unit growth year-over-year, and view the REIT as highly undervalued at current trading levels.\u201d<\/p>\n Mr. Sturges\u2019s target for Boardwalk units slid to $80, matching the average on the Street, from $82. <\/p>\n In a client note released before the bell titled Sewn to Succeed, Stifel analyst Martin Landry said Aritzia Inc. (ATZ-T<\/a>) continues to impress investors with its sales and earnings growth as it ramps up expansion both south of the border and internationally.<\/p>\n “For a fifth consecutive quarter, Aritzia reported exceptional results,\u201c he said. \u201dThroughout the five quarter stretch, sales growth has been above 30 per cent year-over-year, EBITDA margins have expanded by more than 350 basis points on average and EPS growth has doubled year-over-year on average. It\u2019s safe to say that the earnings recovery, which started two years ago, is almost complete and culminating this year with EBITDA margins expected to be around 19 per cent, the level guided by the company at the onset of the 5-year plan established in 2022. <\/p>\n \u201cAritzia introduced a FY27 guidance, which should please with revenue growth and EBITDA margins ahead of expectations. The mid-point of the FY27 guidance suggests an EBITDA of $855 million, 10 per cent higher than consensus of $780 million. Hence, we expect upward earnings revisions, which should propel shares higher [Friday]. With FY27 EPS expected to be up 45 per cent year-over-year, valuation at 30-times earnings is warranted, in our view.\u201d<\/p>\n After the bell on Thursday, the Vancouver-based clothing retailer reported revenue for the fourth quarter of its fiscal 2026 of $1.19-billion, up 33 per cent year-over-year and above both Mr. Landry\u2019s $1.16-billion estimate and the consensus expectation of $1.14-billion. He called growth \u201cstrong\u201d and \u201cachieved on the back of a strong quarter last year, which when combined, represents a revenue growth of 64 per cent on a two-year stacked basis.\u201d <\/p>\n \u201cThe brand awareness of Aritzia is growing rapidly in the United States at a time when other brands such as Abercrombie, Lululemon, and Banana Republic are struggling,\u201d said Mr. Landry. Aritzia seems to have found a niche, offering high quality products at price points above mainstream brands. This is conferring a cachet to the brand, which resonates with customers.\u201c<\/p>\n Adjusted earnings per share grew 39 per cent year-over-year to $1.15, also topping expectations ($1.07 and $1.03, respectively). The attributed the beat to higher sales and lower expenses.<\/p>\n \u201cManagement introduced a very strong FY27 guidance ahead of expectations,\u201d he added. \u201cFY27 revenue guidance of $4.4-4.6-billion, up 19-24 per cent, is higher than our expectations of $4.34-billion and consensus of $4.26-billion. Embedded in this guidance is a strong Q1FY27, where revenues are expected to increase by 36-39 per cent year-over-year. This suggests that management has taken an assumption that revenue growth decelerates as the year progresses. FY27 EBITDA guidance of 19 per cent, represents an increase of 150 basis points year-over-year, and is higher than our expectations of 18.1 per cent and consensus of 18.3 per cent. <\/p>\n \u201cNew boutique openings. Aritzia expect to add 12-13 new boutiques in FY27, with 11-12 in the United States, including new markets such as St. Louis, New Orleans, Birmingham and Fort Worth. The investment payback of new boutique opening remains under one year, better than management\u2019s target of 12-18 months. Lineups in front of the stores on opening day suggests that Aritzia is successful at promoting the openings. Management indicates that there is a very short ramp-up period and that new boutiques are reaching maturity sales levels rapidly. Two new flagship stores are in the works and set to open in FY28.\u201d<\/p>\n After it increases to his fiscal 2027 and 2028 revenue and earnings forecasts, Mr. Landry increased his target for Aritzia shares to a Street high of $180 from $158. The average is $154.15.<\/p>\n Elsewhere, other changes include: <\/p>\n * Canaccord Genuity\u2019s Luke Hannan to $182 from $166 with a \u201cbuy\u201d rating.<\/p>\n \u201cIn our view, given its generation of robust comparable sales growth, healthy pipeline of new selling square footage coming online, and its clean balance sheet to support growth and margin enhancement initiatives, we believe Aritzia is deserving of a premium valuation,\u201d said Mr. Hannan.<\/p>\n * Desjardins Securities\u2019 Chris Li to $175 from $148 with a \u201cbuy\u201d rating. <\/p>\n \u201cATZ delivered another outstanding quarter with robust comp sales of 28 per cent vs 21 per cent consensus, supported by excellent execution (strong product assortment, inventory, enhanced marketing, increasing brand awareness, outsized e-com growth etc). Despite macro uncertainty, top-line and margin momentum are expected to continue in FY27, with management expecting 19\u201324-per-cent revenue growth and 150 basis points EBITDA margin expansion,\u201d said Mr. Li.<\/p>\n * RBC\u2019s Irene Nattel to $193 from $175 with an \u201coutperform\u201d rating. <\/p>\n \u201cATZ delivered another quarter of strong and meaningfully above forecast Q4 results despite tougher prior year comps as existing customer loyalty is augmented by successful new customer acquisition via strong product, effective marketing, geographic expansion and accelerating digital growth with the launch of the mobile app late in Q2. Sales momentum strong and sector-leading across geographies and channels, F27 guidance above forecasts\/consensus heading into the quarter,\u201d said Ms. Nattel. <\/p>\n * TD Cowen\u2019s Brian Morrison to $183 from $185 with a \u201cbuy\u201d rating.<\/p>\n \u201cAritzia Q4\/F26 results\/F2027 potentially conservative guidance, illustrate a growth profile that will increase financial forecasts\/sustain its premium valuation. Buyside expectations above consensus were handily exceeded in our view. Continued outlook for material EPS growth – from brand \u2018heat\u2019, U.S. \u2018white space\u2019, a mobile app accelerating e-comm penetration, and optionality from surplus cash,\u201d said Mr. Morrison.<\/p>\n Ventum Capital Markets analyst George Doumet thinks the 10.1-per-cent jump in shares of Maple Leaf Foods Inc. (MFI-T<\/a>) following its quarterly release on Thursday was \u201cjustified, particularly given investor concerns heading into the quarter around (i) volume elasticity in Prepared Foods following pricing actions, (ii) elevated promotional intensity, and (iii) margin pressure from higher costs (freight and packaging) tied to the conflict in the Middle East.\u201d <\/p>\n \u201cWhile these factors remain headwinds in 2026, they appear manageable within the current operating framework,\u201d he added in a note. \u201cLooking ahead, although we expect Poultry revenue growth to normalize into the mid-to-high-single-digits range in H2\/26, we continue to increasingly appreciate the duration of this growth opportunity over the next 5\u201310 years.”<\/p>\n The Mississauga-based company soared after it reported first-quarter sales of $963-million, topping both Mr. Doumet\u2019s $952-million estimate and the Street\u2019s $956-million expectation. He attributed the beat to \u201coperating efficiency (inclusive of Fuel for Growth program), favourable mix (Poultry channel mix), and disciplined cost management.\u201d Adjusted EBITDA of $122-million also topped projections ($112-million and $116-million, respectively).<\/p>\n \u201cPoultry continued to outperform in Q1, with sales growth of 11.7 per centdriven by strong consumer demand, favourable retail and food service mix, and an 2 pt market share gain. The London Poultry facility remains a key growth enabler, operating efficiently with available capacity, and management highlighted a potential 10-year runway for expansion, with volumes currently tracking ahead of initial expectations. Industry supply management quota allocations are also increasing at a faster 4\u20135-per-cent pace versus the historical 2\u20133-per-cent range, reflecting robust underlying demand. While we expect growth to moderate in H2 into the mid-to-high-single-digit range, the longer-term outlook for the category remains highly attractive.<\/p>\n Pricing holding, volumes settling…\u00a0Prepared Foods sales grew 2.3 per cent in Q1, driven primarily by pricing and mix, while volumes declined 1\u20132 per cent. Management characterized the softer volumes as a typical consumer response following February pricing actions. The timing of promotional activity may have shifted some demand around, though management does not expect a material impact on full-year performance. Importantly, Q2-to-date trends remain broadly consistent with Q1.”<\/p>\n Mr. Doumet did warn the consumer environment was \u201cdescribed as stable but stressed, with promotional investment remaining disciplined and broadly unchanged.\u201d <\/p>\n \u201cWhile management acknowledged pockets of localized pressure, MFI expects margin performance to improve sequentially in Q2; we model a Q2 EBITDA margin of 13.2 per cent, up 50 bps quarter-over-quarter,\u201d he added.<\/p>\n \u201cControlling the controllable. Following February pricing actions, management introduced a temporary fuel surcharge ($0.11\/kg) to offset higher transportation costs tied to the Iran conflict, while noting secondary packaging impacts remain manageable. No additional pricing actions are planned for now. Looking ahead, Q3 was flagged as seasonally softer due to input mix considerations; we are looking for Q3 EBITDA margin of 12.8 per cent, down 40 bps quarter-over-quarter.\u201d<\/p>\n Reaffirming his \u201cbuy\u201d rating for Maple Leaf shares, Mr. Doumet raised his target to $39 from $37. The average is $36.<\/p>\n Elsewhere, others making target adjustments include: <\/p>\n * Scotia\u2019s John Zamparo to $36 from $32 with a \u201csector outperform\u201d rating.<\/p>\n \u201cThis version of MFI has become a predictable, stable-growthstory, with high projected EBIT growth, solid FCF generation with large and growingcapital returns. This year\u2019s outlook appears achievable, and we estimate MFI couldtheoretically pay a more than $1\/share special dividend this year and more than $1.75\/share next year whilestaying neutral to current leverage. Accelerating inflation is on our radar though notyet concerning, and current commodity prices are showing very manageable levels ofinflation,\u201d said Mr. Zamparo.<\/p>\n * Canaccord Genuity\u2019s Luke Hannan to $38 from $37 with a \u201cbuy\u201d rating.<\/p>\n \u201cFollowing the spin-out of its pork processing business, we believe Maple Leaf should exhibit a higher degree of top-line and margin resilience on a go-forward basis, which should garner a higher multiple from investors. In our view, Maple Leaf offers long-term investors an attractive growth profile at a reasonable valuation given the company\u2019s robust brand portfolio and category dominance in prepared meats,\u201d said Mr. Hannan.<\/p>\n * Stifel\u2019s Martin Landry to $36 from $35 with a \u201cbuy\u201d rating.<\/p>\n \u201cThe beat vs our expectation comes from higher revenues and higher gross margin than expected. At 18.7 per cent, gross margin reached the highest level in the last two years. Maple Leaf is benefiting from improved operating efficiencies stemming from asset optimization. MFI\u2019s shares traded down in the weeks leading to the results as investors expressed skepticism on the company\u2019s ability to pass on fuel surcharges to customers. Management had a confident tone during the earnings call, which, combined with the 2026 guidance being unchanged, suggests an ability to pass on higher costs. This reassured investors who sent the shares, up 10 per cent on the day,\u201d said Mr. Landry. <\/p>\n * RBC\u2019s Irene Nattel to $34 from $33 with an \u201coutperform\u201d rating<\/p>\n \u201cMFI delivered solid Q1 results, with revenue growth led by poultry helping offset higher but moderating input costs and higher promotional spending. Pricing action taken mid-quarter should improve profitability as we move through Q2, despite associated transient volume compression. Notwithstanding our caveat that the road from here to there is inevitably bumpy, we reiterate our view that MFI is emerging post-spin as a more agile company with more stable financial results,\u201d said Ms. Nattel.<\/p>\n * National Bank\u2019s Vishal Shreedhar to $37 from $35 with an \u201coutperform\u201d rating.<\/p>\n \u201cWe believe that MFI can improve profitability and deliver amongst the highest EBITDA margin within branded protein peers, in conjunction with mid-single-digit top-line growth. We acknowledge heightened risk, largely due to execution and commodity volatility. In our view, valuation may continue to re-rate higher if MFI demonstrates consistent execution,\u201d said Mr. Shreedhar.<\/p>\n In other analyst actions: <\/p>\n * ATB Cormark\u2019s Nicolas Dion upgraded Lundin Gold Inc. (LUG-T<\/a>) to \u201coutperform\u201d from \u201csector perform\u201d previously while maintaining a $130 target, exceeding the $114.90 average on the Street.<\/p>\n \u201cAfter pre-reporting production and sales, LUG delivered an in-line quarter highlighted by continued strong FCF ($349-million) and the declaration of a $1.21\/sh quarterly dividend (fixed plus variable) – $293-million and an 7-per-centannualized yield. This follows an impressive press release on FDNS\/FDNE drilling (incl. 7.5 metres at 668 g\/t), highlighting the potential for both to be added to the mine plan. FDN remains an exceptional asset in the hands of an excellent operator and, with the stock off its highs, we are moving to an Outperform rating,\u201d said Mr. Dion.<\/p>\n * TD Cowen\u2019s Tim James increased his target for AirBoss of America Corp. (BOS-T<\/a>) by $1 to $9, keeping a \u201cbuy\u201d rating. The average target on the Street is $8.<\/p>\n \u201cWe remain bullish on AirBoss given defense backdrop, increasing consistency of EBITDA stability\/growth, comp multiples, and industrial economy related upside. We assume compounding volume growth resumes in 2027, though uncertainty around timing remains,\u201d said Mr. James. <\/p>\n * Raymond James\u2019 Stephen Boland moved his Alaris Equity Partners Income Trust (AD.UN-T<\/a>) target to $27.25 from $27, keeping an \u201coutperform\u201d rating, while , while Desjardins Securities\u2019 Gary Ho bumped his target to $26.50 from $26 with a \u201cbuy\u201d rating. The average is $25.50.<\/p>\n \u201cAlaris reported a solid 1Q26, with DCFPU ahead of our estimate, stable portfolio coverage, and positive valuation activity, including the 3E realized gain. Management also reiterated the potential for several portfolio exits in 2026, which we believe could help narrow the current discount to book value. We are increasing our target to $27.25 from $27.00 despite a reduction to our reported BVPS estimates, as the decline is largely FX-related and does not reflect a change in underlying partner fundamentals,\u201d said Mr. Boland.<\/p>\n * TD Cowen\u2019s John Mould increased his target for Atco Ltd. (ACO.X-T<\/a>) to $69 from $67 with a \u201chold\u201d rating, while National Bank\u2019s Patrick Kenny raised his target to $62 from $57 with a \u201csector perform\u201d rating. The average is $72.40.<\/p>\n \u201cQ1\/26 results at ATCO Structures & Logistics slightly lagged expectations, offsetting a slight beat from CU (distribution utilities). ATCO highlighted growing pipelines of potential contracts at ATCO Structures, and broader defence-related growth opportunities (i.e., WKR investment),\u201d said Mr. Mould. <\/p>\n * RBC\u2019s Greg Pardy raised his Athabasca Oil Corp. (ATH-T<\/a>) to $12.50 from $12 with a \u201csector perform\u201d rating. The average is $10.39.<\/p>\n \u201cOur constructive stance towards Athabasca reflects its capable leadership team, deep resource base, shareholder alignment, solid operating performance, strong balance sheet, organic growth profile and 100 per cent payout of (thermal) free cash flow to shareholders,\u201d said Mr. Pardy.<\/p>\n * Mr. Mould also raised his Canadian Utilities Corp. (CU-T<\/a>) target to $48, which is 43 cents under the average, from $47, keeping a \u201chold\u201d rating.<\/p>\n \u201cThe Yellowhead Pipeline facility application decision continues to be anticipated in Q3\/26, with the AUC hearing commencing May 11. A decision on potential credit support mechanisms for the project (higher temp. ROE, CWIP) could also land on a similar timeframe. Q1\/26 EPS was a slight beat,\u201d said Mr. Mould. <\/p>\n * National Bank\u2019s Dan Payne raised his Baytex Energy Corp. (BTE-T<\/a>) target by $1 to $8.50 with a \u201csector perform\u201d rating. Other changes include: Scotia\u2019s Kevin Fisk to $7.50 from $6.50 with a \u201csector outperform\u201d rating, ATB Cormark\u2019s Amir Arif to $8.50 from $7 with a \u201csector perform\u201d rating and Raymond James\u2019 Luke Davis to $8 from $7 with an \u201coutperform\u201d rating. The average is $6.22.<\/p>\n \u201cThe pivot is well in hand, having established a strong foundation and advancing across multiple initiatives to offer visibility towards a multi-pronged opportunity to compound long-term value. BTE is poised for a 24-per-cent return profile (vs. peers 29 per cent) on leverage of negative 1.3 times (vs. peers 0.1 times), while trading at 3.8 times 2027 estimated EV\/DACF (vs. peers 3.4 times). The higher target is a function of inclining estimates and the product of the continued cadence of buybacks (each of which should compound through the outlook),\u201d said Mr. Payne. <\/p>\n * Desjardins Securities\u2019 Jerome Dubreuil trimmed his BCE Inc. (BCE-T<\/a>) target to $41 from $41.50 with a \u201cbuy\u201d rating. The average is $38.67.<\/p>\n \u201cData centres are emerging as a key upside lever for BCE, which we believe the Street is currently overlooking. Meanwhile, the telecom newsflow has been negative in 1Q, but the impact on earnings has been manageable. We believe stability in capital allocation and the two needle-moving EBITDA growth drivers (AI-powered solutions and Ziply, despite a slower start than expected) will drive greater investor interest over time. BCE remains our top pick in the sector,\u201d said Mr. Dubreuil.<\/p>\n * National Bank\u2019s Ahmed Abdullah trimmed his Cascades Inc. (CAS-T<\/a>) target to $13 from $14 with a \u201csector perform\u201d rating. Other changes include: TD Cowen\u2019s Sean Steuart to $13 from $14 with a \u201cbuy\u201d rating and RBC\u2019s Matthew McKellar to $14 from $15 with an \u201coutperform\u201d rating. The average is $14.25.<\/p>\n \u201cWe believe that execution risk may still be a factor in addition to macro headwinds,\u201d said Mr. Abdullah. <\/p>\n * TD Cowen\u2019s Mario Mendonca bumped his Definity Financial Corp. (DFY-T<\/a>) target to $86 from $85 with a \u201cbuy\u201d rating. The average is $83.48.<\/p>\n * TD Cowen\u2019s Aaron MacNeil bumped his Ensign Energy Services Inc. (ESI-T<\/a>) target to $3.75 from $3.50 with a \u201chold\u201d rating. The average is $3.83.<\/p>\n \u201cDespite a quarterly miss on reduced estimates, management provided clear visibility to near-term rig additions which, in our view, is the key takeaway and now contemplated in our updated estimates. Additionally, while arguably not material to estimates in isolation, a rig add in Venezuela is likely to captivate the imagination of some investors,\u201d said Mr. MacNeil. <\/p>\n * RBC\u2019s Bart Dziarski cut his Element Fleet Management Corp. (EFN-T<\/a>) to $40 from $47 with an \u201coutperform\u201d rating. The average is $42.<\/p>\n \u201cEFN traded down 7 per cent [on Thursday] despite an in-line quarter which marks the 2nd consecutive quarter of meaningful move down following in-line results (in Q4\/25 EFN traded down 4 per cent),\u201d said Mr. Dziarski. \u201cManagement maintained 2026 guidance and we believe the bar for delivering strong results for the remainder of the year has been raised particularly for service revenue growth (up 6 per cent year-over-year in Q1\/26) to accelerate to 10 per cent plus.\u201d<\/p>\n * National Bank\u2019s Patrick Kenny bumped his Fortis Inc. (FTS-T<\/a>) target to $75 from $74 with a \u201csector perform\u201d rating, while Barclays\u2019 Michael Lonegan lowered his target to $83 from $84 with an \u201coverweight\u201d rating. The average is $78.88.<\/p>\n \u201cWe continue to like the prospects of Fortis\u2019s highmultiple ITC and Canadian businesses, in addition to its incremental growth opportunities and positive regulatory developments in Arizona,\u201d said Mr. Lonegan.<\/p>\n * TD Cowen\u2019s Sam Damiani raised his Granite REIT (GRT.UN-T<\/a>) target to $101 from $96 with a \u201cbuy\u201d rating. Other changes include: Scotia\u2019s Himanshu Gupta to $105 from $100 with a \u201csector outperform\u201d rating, Canaccord Genuity\u2019s Mark Rothschild to $105 from $100 with a \u201cbuy\u201d rating and Raymond James\u2019 Brad Sturges to $103 from $101 with an \u201coutperform\u201d rating. The average is $98.20.<\/p>\n \u201cGRT continues executing well and with discipline in today\u2019s improving leasing and transaction markets. Acquisitions remain focused on core U.S. and Eur.\/UK markets while GRT is taking advantage of today\u2019s stronger buyer interest in select lower-growth U..S assets,\u201d said Mr. Steaurt. \u201cThe result: meaningful enhancements to long term value with comparatively modest initial\/temporary dilution.\u201d<\/p>\n * National Bank\u2019s Gabriel Dechaine hiked his Great-West Lifeco Inc. (GWO-T<\/a>) target to $73, matching the average from $65 with a \u201csector perform\u201d rating. Other changes include: Scotia\u2019s Mike Rizvanovic to $83 from $78 with a \u201csector outperform\u201d rating and Desjardins Securities\u2019 Doug Young target to $80 from $71 with a \u201chold\u201d rating. <\/p>\n \u201cGWO reported another strong set of results in Q1 that once again featured solid performance for Empower that saw base earnings jump 23 per cent year-over-year (or a still-impressive 17 per cent excluding the impact of lower credit experience), while CRS surprised to the upside, driven by the rapidly growing Capital Solutions business. With management guidance unchanged on expected growth rates across the lifeco\u2019s segments, the mediumterm outlook remains constructive with further upside potential, in our view, on inorganic growth for Empower, which we believe is very likely to pull the trigger on a deal in the not-too-distant future as the industry consolidates. And so we come out of the quarter more confident in the lifeco\u2019s ability to generate superior returns through our forecast period. Our EPS estimates move modestly higher as we now expect 13-per-cent growth in base EPS for the current year and a similar 11 per cent in 2027. We reiterate our Sector Outperform rating as GWO remains our top pick among the large Canadian lifecos,\u201d said Mr. Rizvanovic.<\/p>\n * RBC\u2019s Jimmy Shan raised his target for Killam Apartment REIT (KMP.UN-T<\/a>) units by $1 to 22 with an \u201coutperform\u201d rating. Other changes include: Scotia\u2019s Mario Saric to $20 from $19.50 with a \u201csector outperform\u201d rating, Raymond James\u2019 Brad Sturges to $20.25 from $20 with an \u201coutperform\u201d rating, TD Cowen\u2019s Jonathan Kelcher to $21 from $20 with a \u201cbuy\u201d rating and National Bank\u2019s Matt Kornack to $20 from $19.75 with an \u201coutperform\u201d rating. The average is $19.80.<\/p>\n \u201cFrom an operating standpoint, spring leasing season appears to have positive momentum with key operating metrics pointing in the right direction. Occupancy and market rents trended positively through the winter quarter, particularly in Halifax \u2013 something we did not expect. From a capital allocation standpoint, there is a notable shift to sell MHC, pause new developments and buy back stock, which we view positively. As such, despite a more competitive rental market and flat population growth, we reiterate OP given increased defence spending tailwind, positive operating momentum and positive capital allocation shift,\u201d said Mr. Shan. <\/p>\n * RBC\u2019s Paul Treiber increased his Kinaxis Inc. (KXS-T<\/a>) target to $210 from $200 with an \u201coutperform\u201d rating. The average is $204.71.<\/p>\n \u201cKinaxis reported one of its strongest quarters in the last 2+ years. ARR growth accelerated, net new ARR was a Q1 record, and adj. EBITDA margins reached the highest level in 4 years. While Kinaxis only reiterated FY26 guidance, we see momentum driving potential upside through the year. With the stock near historical valuation lows, we see attractive risk-reward,\u201d said Mr. Trieber.<\/p>\n * Mr. Treiber lowered his Open Text Corp. (OTEX-Q<\/a>, OTEX-T<\/a>) target to US$27 from US$30 with a \u201csector perform\u201d rating. Other changes include: Raymond James\u2019 Steven Li to US$35 from US$42 with an \u201coutperform\u201d rating, Scotia\u2019s Kevin Krishnaratne to US$40 from US$50 with a \u201csector outperform\u201d rating and Citi\u2019s Steven Enders to US$25 from US$26 with a \u201cneutral\u201d rating. The average is US$27.25.<\/p>\n \u201cQ3 revenue was in line with OpenText\u2019s pre-announcement and RBC\/consensus. Cloud revenue, bookings and profitability were better than expected. However, non-core and non-cloud segments continue to decline and divestitures of non-core segments appear delayed. Investor sentiment is likely to remain soft, pending stronger organic growth,\u201d said Mr. Treiber.<\/p>\n * Desjardins Securities\u2019 Benoit Poirier raised his MDA Space Ltd. (MDA-T<\/a>) target to $55 from $53 with a \u201cbuy\u201d rating. Other changes include: Scotia\u2019s Konark Gupta to $53 from $49 with a \u201csector outperform\u201d rating and ATB Cormark\u2019s David McFadgen to $53 from $54 with an \u201coutperform\u201d rating. The average is $53.45.<\/p>\n \u201c1Q26 reinforced our confidence in MDA\u2019s strong 2026 execution plan. The next phase depends on converting its large pipeline into awards, while deploying post-IPO balance sheet capacity, most likely through M&A. With the large $40-billion opportunity pipeline, we are confident in its ability to convert opportunities into backlog over time and sustain its revenue growth path of 25-per-cent-plus,\u201d said Mr. Poirier.<\/p>\n * Stifel\u2019s Martin Landry raised his Premium Brands Holdings Corp. (PBH-T<\/a>) target to $117 from $112 with a \u201cbuy\u201d rating. Other changes include: Scotia\u2019s John Zamparo to $110 from $100 with a \u201csector outperform\u201d rating, Ventum Capital Markets\u2019 George Doumet to $128 from $124 with a \u201cbuy\u201d rating and RBC\u2019s Ryland Conrad to $131 from $129 with an \u201coutperform\u201d rating. The average is $120.27.<\/p>\n \u201cPremium Brands reported strong Q1\/26 results supported by solid organic growth of 7.6 per cent and a successful acquisition,\u201d said Mr. Landry. \u201cThe company is ramping-up its newly built capacity with several new product launches and this tailwind should continue for the coming quarters. Management is also on a mission to re-center the company\u2019s operations to its core businesses, which include the protein, sandwich and bakery groups. As such, the divestiture of Shaw Bakers is the first step in a strategy to monetize non-core assets. Management estimates that proceeds could exceed well over $1 billion. We expect some of these proceeds will be used to pay down debt and some will be redeployed toward higher return opportunities. With a reasonable valuation of 12 times forward earnings and high teens EPS growth potential, Premium Brands is an appealing combo of growth at a reasonable price, offering one of the lowest PEG ratio in our coverage universe.\u201d <\/p>\n * RBC\u2019s Pammi Bir raised his RioCan REIT (REI.UN-T<\/a>) target to $24 from $22, which is the average, with an \u201coutperform\u201d rating.<\/p>\n \u201cPost largely in line Q1 results, we like the direction of travel here. Despite broader economic pressures, REI is well-positioned to capitalize on the retail leasing \u201csupercycle\u201d, with a lengthy runway for organic growth to exceed historical levels. Progress on capital repatriation is also encouraging, with proceeds being reinvested at compelling returns. Combined with an attractive, durable earnings growth profile and transactions supportive of lower cap rates for urban, defensive retail, we see multiple levers to drive valuation higher,” said Mr. Bir.<\/p>\n * National Bank\u2019s Giuliano Thornhill bumped his SmartCentres REIT (SRU.UN-T<\/a>) target to $28 from $27.10 with a \u201csector perform\u201d rating, while Scotia\u2019s Mario Saric increased his target to $28.50 from $27.50 with a \u201csector perform\u201d rating. The average is $28.75.<\/p>\n \u201cSRU posted mixed results. NOI was slightly below street expectations on a decline in occupancy from its previously communicated Toys R Us exposure. More positively, a number of sites will be backfilled with grocers at 25-per-cent higher rents, and with better lease terms, supporting occupancy recovery to 98 per cent (up 40 basis points vs. quarter end),\u201d said Mr. Thornhill. <\/p>\n * Barclays\u2019 Manav Patnaik dropped his Thomson Reuters Corp. (TRI-Q<\/a>, TRI-T<\/a>) target to US$140 from US$170 with an \u201coverweight\u201d rating. The average is US$138.94.<\/p>\n * In a note titled Makin\u2019 hay while the crack spread shines…, National Bank\u2019s Patrick Kenny raised his Tidewater Midstream and Infrastructure Ltd. (TWM-T<\/a>) target to $15, exceeding the $9.83 average, from $9.50 with a \u201csector perform\u201d rating. Other changes include: Scotia\u2019s Robert Hope to $17 from $9 with a \u201csector perform\u201d rating, RBC\u2019s Maurice Choy to $18 from $11 with a \u201csector perform\u201d rating and ATB Cormark\u2019s Nate Heywood to $17 from $9 with a \u201csector perform\u201d rating. The average is $9.83.<\/p>\n \u201cOverall, based on the step change in free cash flow driving down near-term debt levels, combined with bumping up our long-term WTI and PGR crack spread assumptions, our target moves up to $15.00 (was $9.50) and we maintain our Sector Perform rating ahead of further potential asset sales in Q2\/26 towards reaching its $100 mln divestiture target,\u201d said Mr. Kenny.<\/p>\n * Seeing \u201csignificant improvement,\u201d National Bank\u2019s Dan Payne increased his target for Tidewater Renewables Ltd. (LCFS-T<\/a>) to $13.25 from $8 with a \u201csector perform\u201d rating. Other changes include: ATB Cormark\u2019s Nate Heywood to $12 from $8 with a \u201cspeculative buy\u201d rating and RBC\u2019s Maurice Choy to $12.50 from $7.50 with a \u201csector perform\u201d rating. The average is $7.83.<\/p>\n \u201cA very solid quarter from the company, proving significant tailwinds to value through positive execution and structural change for its business, with resonance through the outlook. In association, we have reset our estimates with greater confidence, and are maintaining our SP rating, while increasing our target price,\u201d said Mr. Payne. <\/p>\n * Raymond James\u2019 Stephen Boland bumped his Trisura Group Ltd. (TSU-T<\/a>) target to $57.25 from $57 with an \u201coutperform\u201d rating. The average is $56.20.<\/p>\n \u201cOverall, this was a positive quarter for Trisura with some mixed results in certain business segments (e.g., Canadian Fronting). However, management is focused on profitability which we believe tends to drive shareholder value over time. Book value per share continues to grow at a double-digit pace (up 16.4 per cent year-over-year), and we believe management could achieve its $1.0 billion book value target by mid-2026, ahead of the prior year-end 2027 goal. We maintain our Outperform rating, supported by continued growth and premium ROE,\u201d said Mr. Boland.<\/p>\n