Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
Ahead of second-quarter earnings season for Canadian banks, Raymond James analyst Stephen Boland expects credit and trading revenues will be the main focus of the Street.<\/p>\n
\u201cCredit results may look benign, but we view the results as a lagging indicator,\u201d he said. Commercial PCLs should benefit from normalization following several increases across the group in 1Q26. We believe rising economic uncertainty, particularly from energy-driven inflation risk, increases downside risk to both consumer and commercial credit. We expect any early pressure to appear first in performing provisions. As a result, we are focused less on the quarterly PCL results and more on whether banks reaffirm credit guidance and how management teams characterize evolving conditions.<\/p>\n
\u201cTrading revenues could be the primary source of upside in Capital Markets.\u00a0While we remain positive on C&IB, elevated volatility and resilient asset prices should support trading results, particularly in equities, currencies, and commodities. This focus favours NA and CIBC, which have higher relative exposure to these businesses, while RBC and TD may see more muted relative performance given their mix.\u201d<\/p>\n
In a client report released before the bell on Tuesday, Mr. Boland made a pair of rating revisions to stocks in his coverage universe:<\/p>\n
He upgraded Toronto-Dominion Bank (TD-T<\/a>) to \u201coutperform\u201d from \u201cmarket perform\u201d with a $152.50 target, up from $141. The average on the Street is $144.75, according to LSEG data.<\/p>\n \u201cWe believe TD is reasonably valued relative to improving fundamentals and have increased confidence in management\u2019s ability to execute on its strategic priorities,\u201d said Mr. Boland. \u201cThis increased confidence is supported by a recent meeting with TD Group President and CEO Raymond Chun. The bank is focused on deepening existing customer relationships, improving product penetration, and using AI-driven process redesign to deliver structural cost reductions. TD also benefits from above-average U.S. exposure, where the NIM and loan growth outlook are more favourable than in Canada.”<\/p>\n Conversely, he lowered Royal Bank of Canada (RY-T<\/a>) to \u201cmarket perform\u201d from \u201coutperform\u201d previously with a $265.50 target, up from $248. The average is $255.04.<\/p>\n \u201cWe continue to view RBC as a scaled, diversified franchise with a lower-volatility earnings profile,\u201d he said. \u201cHowever, those same attributes may limit relative upside this quarter. In a stronger trading revenue environment, RBC\u2019s greater exposure to rates and credit trading may benefit less than peers with higher exposure to equities, currencies, and commodities. With RY trading at roughly a one-turn P\/E premium to the peer group (excl. RY), we believe the stock is priced to execute, and the absence of a larger trading revenue uplift could limit near-term upside.\u201d<\/p>\n Mr. Boland made these other target revisions:<\/p>\n * Bank of Montreal (BMO-T<\/a>, \u201coutperform\u201d) to $227 from $214. Average: $210.16.<\/p>\n Analyst: \u201cWe view BMO favourably heading into 2Q26, with the quarter likely marking a trough in reported growth as U.S. optimization efforts begin to roll off. This sets up a clearer path to reacceleration into 2H26, supported by its U.S. exposure and commercial lending mix.\u201d<\/p>\n * Bank of Nova Scotia (BNS-T<\/a>, \u201coutperform\u201d) to $120 from $117. Average: $108.80. <\/p>\n Analyst: \u201cBNS is an execution-driven recovery story, with improving credit trends and growth initiatives supporting potential upside from current valuation levels.\u201d<\/p>\n * Canadian Imperial Bank of Commerce (CM-T<\/a>, \u201cmarket perform\u201d) to $157.50 from $148.50. Average: $150.15. <\/p>\n Analyst: \u201cCIBC remains one of the cleaner execution stories among the Canadian banks, a positioning we expect to continue into 2Q26. The bank was a standout performer in 1Q26, driven in part by strong outperformance in Capital Markets. The core driver this quarter is Capital Markets strength, supported by a favourable trading environment, though we do not expect 1Q26 performance to fully repeat.\u201d<\/p>\n * National Bank of Canada (NA-T<\/a>, \u201cmarket perform\u201d) to $206.50 from $200. Average: $193.14.<\/p>\n Analyst: \u201cWe expect NA to be one of the strongest performers in 2Q26, driven by its elevated exposure to trading revenues (see Capital Markets section), particularly in equities. This positioning should allow NA to outperform peers in the quarter, though the sustainability of this strength remains a key consideration.\u201d<\/p>\n While he acknowledges the presence of headwinds to the performance and expansion of Pet Valu Holdings Ltd. (PET-T<\/a>), Stifel analyst Martin Landry emphasizes the retailer is not a \u201cvalue trap\u201d for investors following a 14-per-cent drop in its share price on Tuesday in response to the release of weaker-than-anticipated first-quarter results.<\/p>\n \u201cThe company pointed to value seeking customers which leaned heavily into promotions and pressured margins,\u201d he said in a client note. \u201cHigher discounts year-over-year also weighed on comparable sales growth which came-in at 0 per cent year-over-year, the worst performance of the last five quarters. As a result, management reduced its 2026 financial guidance, which now calls for stable EPS growth year-over-year, down from an increase of mid-to-high single digits previously. <\/p>\n \u201cRecall, the original 2026 financial guidance issued in March 2026 had already disappointed investors sending shares down 11 per cent on the day of the Q4\/25 results. Hence, a further downward revision [Tuesday] exacerbated the disappointment. At 10-times forward earnings, six turns lower than the company\u2019s 3-year average, shares of Pet Valu reflect a lot of negatives.\u201d<\/p>\n The Markham, Ont.-based company reported quarterly revenue of $288-million, up 3 per cent year-over-year but below Mr. Landry\u2019s $291-million estimate as same-store sales were flat as consumers continue to see value and \u201chave leaned into promotional activity to a higher extent than in the past.\u201d Earnings per share fell 13 per cent to 31 cents, missing the 37-cent projection of both the analyst and the Street.<\/p>\n Despite the underwhelming results and a cut to its full-year guidance, based \u201con higher fuel costs and pressured consumer,\u201d Mr. Landry maintained his \u201cbuy\u201d rating for Pet Valu, noting its issues aren\u2019t unique.<\/p>\n \u201cIn our view, Pet Valu is negatively impacted by macroeconomic events rather than company specific issues,\u201d he said. \u201cConsumer confidence has declined in recent months in Canada, a reflection of the inflationary pressure impacting discretionary spending. The pet food industry has resilient characteristics and Pet Valu seems to be gaining market share according to management. <\/p>\n \u201cFlat EPS is not exciting. Our revised forecasts are calling for EPS of $1.57, down 2 per cent year-over-year, and flat when removing the extra week in 2025. In revising the 2026 EPS guidance, management has assumed that fuel prices remain elevated all year. Under a situation where the conflict in Iran gets resolved, consumer confidence could return and fuel costs could abate, a potential upside to EPS guidance.\u201d<\/p>\n While he cut his second-quarter comparable sales growth expectations, now calling for a \u201cstable\u201d increase in the second quarter, he thinks \u201cthere is a scenario where comparable sales return to growth in the back half. This would be well received by investors and could push shares higher.\u201d <\/p>\n Also emphasizing the company\u2019s \u201cflexibility to act on share buybacks\u201d and calling it a \u201cleading Canadian pet food retailer\u201d with an 18-per-cent market share, Mr. Landry lowered his target by $9 to $23. The average on the Street is $29.29.<\/p>\n \u201cShares of Pet Valu trade at 10 times forward earnings, six turns lower than the company\u2019s 3-year average,\u201d he noted. \u201cWe see the potential for the company to growth its earnings at 10% annually in a sustainable way under a normal economic environment. Hence, PET\u2019s shares trade at a PEG ratio of 1 times, a low level in our view, given the defensive characteristics of the industry. Free cash flow yield, at 11 per cent on 2026 and 2027 is also an appealing level in our view.\u201d<\/p>\n \u201cGiven the volatile economic environment, we believe Pet Valu is an appealing investment where investors can find refuge. The Canadian Pet Food industry is defensive, having declined only once in 30 years, a characteristic sought after by investors. In addition, Pet Valu\u2019s cost structure is not impacted in a material way from fluctuation in tariffs.\u201d<\/p>\n Elsewhere, citing \u201cheightened operational risk in an uncertain macro backdrop,\u201d Barclays\u2019 Adrienne Yih downgraded Pet Valu to \u201cequal-weight\u201d from \u201coverweight\u201d with a $17 target, down from $28.<\/p>\n Analysts making target revisions include:<\/p>\n * Raymond James\u2019 Michael Glen to $21 from $31.50 with an \u201coutperform\u201d rating.<\/p>\n \u201cExiting 1Q, we are opting to take a conservative view with our forecast, with most of the adjustments relating to lower gross margin assumptions,\u201d said Mr. Glen. \u201cBased on commentary we heard from Pet Valu, we believe it will be difficult to improve gross margins sequentially (e.g. 1Q into 2Q), particularly given promotional market conditions and value seeking consumer behaviour, which is coupled with input cost inflation that are showing up in freight, transportation and vendor costs, with PET also referencing product cost pressure from consumables suppliers. We believe promotional activity will need to be much more measured from here, as input costs are seemingly working against all competitors and will become increasingly difficult to absorb. Below gross margin, we are more confident with PET taking actions against SG&A (both cost and corporate resale related), and to stabilize margins and EPS, but this is unlikely to get investors excited or support a higher multiple\/valuation. We would caution any investor against expecting any notable turn in results with 2Q.\u201d<\/p>\n * ATB Cormark\u2019s Kyle McPhee to $30 from $40 with an \u201coutperform\u201d rating.<\/p>\n \u201cPET released a weak Q1\/26 update with top-line performance as expected (muted momentum), but margins missing expectations (promotional activity required in the weak prevailing consumer environment; margin guidance was reduced). It\u2019s increasingly unclear when business momentum will turn positive (likely not a 2026 dynamic),\u201d said Mr. McPhee.<\/p>\n * National Bank\u2019s Vishal Shreedhar to $22 from $27 with a \u201csector perform\u201d rating.<\/p>\n \u201cPET\u2019s stock has become a show-me story as the company successively revised guidance lower,\u201d said Mr. Shreedhar. \u201cUntil business model credibility is restored, we anticipate PET to trade at a discounted valuation reflecting heightened uncertainty.\u201d<\/p>\n \u201cWhile the pet industry has historically been characterized by stable growth, we believe the current pressured backdrop (tepid consumer and heightened industry competition, etc.) is unfavourable for premium-priced retailers. We look for signs of stabilizing performance in quarters ahead.\u201d <\/p>\n * TD Cowen\u2019s Cheryl Zhang (assuming coverage from Michael Van Aelst) to $22 from $34 with a \u201cbuy\u201d rating.<\/p>\n \u201cShares fell 14 per cent [on Tuesday] on reduced earnings outlook driven by elevated value-seeking behaviour and fuel costs,\u201d she said. \u201cWe maintain BUY as the attractive long-term growth outlook is unchanged and valuation at 10.4 times NTM [next 12-month] EPS is compelling. However, investor sentiment may take time to recover as earnings return to growth in H2\/26.\u201d <\/p>\n * RBC\u2019s Irene Nattel to $26 from $27 with an \u201coutperform\u201d rating.<\/p>\n \u201cWith [Tuesday\u2019s] 14-per-cent share price decline, investors are clearly disappointed with downward revision to 2026 guidance, including management commentary around heightened level of consumer value-seeking behaviour,\u201d said Ms. Nattel. \u201cHaving said that, in our view, pressure on shares\/valuation already reflects current state of consumer demand\/SSS, and understates PET\u2019s solid fundamental positioning, capital-light model and high ROIC\/FCF. While we expect valuation to remain range-bound near- term, in our view current value presents an opportunity as visibility improves.\u201d <\/p>\n * Desjardins Securities\u2019 Chris Li to $26 from $32 with a \u201cbuy\u201d rating.<\/p>\n \u201cThe sharp share price decline today reflects limited earnings visibility due to heightened value-seeking by consumers. This drove a 1Q miss and caused management to lower its 2026 earnings guidance. But at a forward P\/E of only 10.5 times, we believe PET\u2019s valuation already reflects the near-term challenges, with potential for improvement in 2H as promo intensity eases and PET laps year-ago pricing investments. We maintain our Buy rating but expect the shares to be rangebound until earnings visibility improves,\u201d said Mr. Li.<\/p>\n National Bank Financial analyst Dan Payne downgraded CES Energy Solutions Corp. (CEU-T<\/a>) to a \u201csector perform\u201d rating from \u201coutperform\u201d previously, pointing to its relative outperformance and valuation \u00a0as well as \u201cseasonality (and mild structural headwinds) of returns and cadence of free cash flow & return of capital (which likely decelerate in the immediate-term).\u201d<\/p>\n \u201cThat said, this rating change only sees us move CEU down to second place (from first) within our pecking order (now EFX, CEU, TCW, PD & PSI), as it remains one of the highest quality names in the group, with considerable long-term compounding opportunities ahead (discussed here),\u201d said Mr. Payne. \u201cThis is by no means a suggestion to reduce exposure (impossible to say in this atmosphere), but hitting the pause button (given it is up 260 per cent since we upgraded it as our sole Outperform nine months ago; vs. peers 130 per cent), likely until after Q2 prints in the summer, at which point, the visibility in the outlook for the strength of its attributes likely improves (in support of a restoration of our optimistic long-term bias).\u201d<\/p>\n Mr. Payne noted the company\u2019s first-quarter results, which were released on May 6, largely fell in line with expectations with the Calgary-based company \u201cpositively progressing through expanding market share in the U.S. (a significant & structural opportunity with new business wins ongoing, below) and Canada remaining highly-entrenched, however we noted some blowing immediate-term headwinds, as margins contracted 60 bps through the period (supply chain & cost inflation creeping).\u201d<\/p>\n \u201cWith that, and commentary on the call discussing those elements of drag (supply chain not easing anytime soon with global conflict ongoing), plus seasonality through break-up in Canada, we expect that earnings will decelerate in the near-term, which also likely to bias its cadence of return of capital through buyback (in association with its premium relative valuation to historical) to the low-end of the historical range, and each to constrain the stock\u2019s near-term performance,\u201d he continued.<\/p>\n The analyst maintained a $20 target for CEU shares. The average on the Street is $20.93.<\/p>\n \u201cCEU remains one of the highest quality names in the group, with exposure to unique structural and thematic tailwinds to support earnings momentum and value over the long-term,\u201d he concluded. \u201cAs we have previously suggested, its business should continue to expand through increased entrenchment (filling whitespace of the competitor landscape to drive market share higher) and new business wins (multi-billion dollar addressable market in offshore & oilsands being tapped), with the compounding impact of the intensity thematic (increased demand for consumable chemicals; recently noted examples in natural gas plays), and the returns of which should be magnified by operating leverage. With that, in the absence of increased industry activity, the company continues to maintain one of the greatest opportunities for growth and margin expansion from which to compound FCF (off its capital lite base) and value (validating its premium multiple); and all of which would drive leadership with any expansion to upstream spending. Again, the bull thesis has not dissipated, but is arguably on pause in the short-term.\u201d<\/p>\n Following \u201cstrong\u201d first-quarter results, National Bank Financial analyst Shane Nagle raised his forecast for Altius Minerals Corp. (ALS-T<\/a>), touting near-term upside in fertilizer prices given the ongoing disruptions in the Strait of Hormuz as well as \u201c a balance sheet supportive of increased activity on the Company\u2019s NCIB resulting in an improved target multiple.\u201d<\/p>\n After the bell on Tuesday, the St. John\u2019s-based company reported attributable adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $19.8-million for the quarter, exceeding Mr. Nagle\u2019s $17-million estimate and the consensus of $15.6-million. Adjusted earnings per share of 11 cents fell below projections (14 cents and 18 cents, respectively).<\/p>\n However, the analyst emphasized Altius continues to see growth across every underlying business segment.<\/p>\n \u201cQ1 revenues were $9.1-million from base metals, $5.4-million from lithium, $4.5-million from potash, $3.6-million from renewable energy, $1.6-million from iron ore and $2.2-million from interest and other income,\u201d he said. \u201cWe continue to see near-term growth in base metals revenue from Voisy\u2019s Bay expansion in H2\/26, Curipamba in 2027 and Sa\u00fava development in 2029. Lithium revenues are also expected to increase with initial production from several assets over the coming years. We also continue to see strong growth in renewable and see potash prices remaining well supported through 2026 given global supply disruptions related to unrest in the Middle East.\u201d<\/p>\n Also noting the company\u2019s balance sheet remains in \u201cstrong shape\u201d with the expectation it will be \u201cmore active on its NCIB through the remainder of the year,\u201d Mr. Nagle raised his target for Altius shares to $62.50 from $57.50, keeping an \u201coutperform\u201d rating. The average is $51.63.<\/p>\n \u201cOur Outperform rating remains supported by stable, long-life asset base, transitioning of the portfolio towards lower carbon-intensive commodities and leveraging in-house expertise to provide long-term exposure to future exploration success,\u201d he said.<\/p>\n Elsewhere, BMO\u2019s Rene Cartier increased his target to $49 from $44 with a \u201cmarket perform\u201d rating<\/p>\n In the wake of better-than-expected first-quarter results and an increase to its 2026 guidance for the second time in as many quarters, RBC Dominion Securities analyst James McGarragle sees further upside for Exchange Income Corp. (EIF-T<\/a>), pointing to \u201crobust trends in Aviation and indication Manufacturing is capitalizing on improving industrial trends.\u201d <\/p>\n \u201cFurthermore, we continue to expect investor focus to shift to the compelling 2027 outlook, where we see potential for more than $1-billion in EBITDA if management is able to execute on a robust M&A and Aerospace pipeline, in addition to several known growth drivers, including Greenland and Canadian North,\u201d he added.<\/p>\n Shares of the Winnipeg-based company jumped 6.6 per cent after it reported quarterly adjusted EBITDA of $166-million, ahead of both Mr. McGarragle\u2019s $161-million estimate and the consensus of $159-million due largely to strong results from its Aviation business.<\/p>\n \u201cWhile management\u2019s 2026 guidance raise was encouraging, we view commentary on the 2027 outlook as the key takeaway from Q1,\u201d he said. \u201cIn Manufacturing, the new Mississippi mat plant will meaningfully expand capacity to meet robust U.S. demand, while Cdn operations should benefit from long linear projects commencing late 2026\/early 2027. Furthermore, we believe windows should stabilize. This combined with an improving industrial backdrop (PMI and ABI both more than 50) points to upside to consensus Manufacturing estimates in our view. Aerospace also presents multiple growth vectors through the Greenland contract, potential UK Home Office renewal, expanding ISR opportunities across Canada and Europe, and increasing passenger loads in Nunavut driven by federal northern investments. All that to say, our estimates do not include any future M&A or unannounced contracts wins, with management noting on the call it is in discussions for both, and we therefore see line of sight to more than $1-billion in EBITDA as early as next year.\u201d<\/p>\n After Exchange Income management also increased its 2026 guidance to the upper end of $825-million to $875-million (from the mid to upper end of the range), ahead of consensus forecast of $868-million, Mr. McGarragle said he still sees the new range \u201cas conservative given the Q1 result and reflecting several Aerospace opportunities that are progressing ahead of our prior expectations (Cdn. North, B.C. air ambulance, and ISR).\u201d<\/p>\n \u201cMoreover, management alluded to an acceleration of Manufacturing activity in the quarter, with that strength continuing into April, in addition to flagging that long linear projects in Canada are anticipated to come online in the latter part of 2026, all of which will believe suggests upside to Manufacturing expectations embedded in management\u2019s guide,\u201d he added.<\/p>\n While he raised his earnings forecast based on \u201csolid growth in Aviation and an expected rebound in Manufacturing,\u201c Mr. McGarragle lowered his target to $127 from $133 to reflect his unchanged valuation multiple and increased leverage, keeping an \u201coutperform\u201d rating. The average is $125.30.<\/p>\n Elsewhere, BMO\u2019s Michael Goldie upgraded the stock to \u201coutperform\u201d from \u201cmarket perform\u201d with a $120 target, up from $111.<\/p>\n \u201cWhile investment is not without risk, given the stock\u2019s rapid expansion of valuation multiples, the company has a set of clear catalysts and tailwinds to support go-forward share price performance,\u201d he said. Importantly, we see these opportunities as being multi-year and multi-segment. Our 2026 estimated EPS is increased to $4.45 from $3.98 and our 2027 to $5.02 from $4.65.”<\/p>\n Others making target changes include:<\/p>\n * Raymond James\u2019 Steve Hansen to $130 from $125 with a \u201cstrong buy\u201d rating.<\/p>\n \u201cWe are increasing our target price on Exchange Income Corporation (EIC) to $130.00 (vs. $125.00 prior) and reiterating our Strong Buy rating based upon the firm\u2019s: 1) record 1Q26 print; 2) unique exposure to accelerating defense & security tailwinds; 3) rich embedded growth prospects; and 4) catalyst-rich outlook. In short, we continue to view the name as a high-quality, defensive growth compounder with attractive embedded growth prospects and strong optionality,\u201d said Mr. Hansen. <\/p>\n * Desjardins Securities\u2019 Gary Ho to $120 from $116 with a \u201cbuy\u201d rating. <\/p>\n \u201cEIC posted a 1Q beat with records across key financial metrics and shifted its 2026 EBITDA guidance bias to the upper end of $825\u2013875-million. Management also signalled potential upside if momentum persists. Our new 2026 estimated EBITDA is slightly more bullish at $881-million. A&A drove the outperformance across several drivers, while Manufacturing was modestly soft due to continued windows moderation and tariff headwinds. We raised our estimates,\u201d said Mr. Ho.<\/p>\n * Canaccord Genuity\u2019s Matthew Lee to $129 from $116 with a \u201cbuy\u201d rating.<\/p>\n \u201cExchange Income reported Q1 results with EBITDA beating on the back of very strong A&A results. Our key takeaway from the quarter was that nearly all EIF\u2019s segments continue to deliver growth, with Regional One, ISR, and passenger flying all building on last year\u2019s strength. Given that EIF has relatively little fuel risk and minimal exposure to the Middle East, we view the current guidance as somewhat conservative, particularly as Canadian North synergies and new contracted flying agreements begin. Post-quarter, we have raised our numbers modestly, now sitting above the high end of guidance, reflecting our expectation of further guidance increases as macroeconomic visibility improves. As a result, our target has increased,\u201d said Mr. Lee.<\/p>\n * Paradigm\u2019s Razi Hasan to $122 from $120 with a \u201cbuy\u201d rating.<\/p>\n * CIBC\u2019s Krista Friesen to $123 from $120 with an \u201coutperformer\u201d rating.<\/p>\n In a client report released before the bell titled \u201cI\u2019ve got the power!\u201d\u2014reflecting the data centre opportunity, Desjardins Securities analyst Jerome Dubreuil argues BCE Inc. (BCE-T<\/a>) and Telus Corp. (T-T<\/a>) are well positioned to \u201cmonetize their access to power, solutions portfolios, fibre and B2B expertise,\u201d pointing to their \u201cstrong compute demand and data repatriation initiatives position.\u201d<\/p>\n \u201cWe see upside in BCE\u2019s stock, particularly around uncontracted power,\u201d he said \u201cThis opportunity should drive an acceleration of BCE\u2019s adjusted EBITDA growth to 5-per-cent-plus in 2028, supported by strong IRRs and only a modest impact on leverage. We see data centres as a catalyst-rich theme, including (1) incremental power allocation; (2) contract announcements; (3) execution milestones; (4) disclosure improvement; and (5) minority stake sales.\u201d<\/p>\n Maintaining his \u201cbuy\u201d rating for BCE shares, Mr. Dubreuil raised his target to $43.50 from $41 to \u201cbetter reflect the data centre opportunity.\u201d The average is $38.51.<\/p>\n \u201cOur increased confidence in the value of power access alongside BCE\u2019s early execution leads us to ascribe $3\/share of incremental value for the uncontracted 427MW of power capacity we expect the company will eventually monetize,\u201d he explained. \u201cWe view this as conservative, given (1) that we reflect only 50 per cent of our derived value for this 427MW capacity; and (2) our assumption of a 14-per-cent IRR on its deployment (vs 20 per centfor the Saskatchewan project). We calculate the announcement of contracts for the 427MW would unlock an incremental $3\/share of value after removing our 50-per-cent discount. This would amount to a total of $6\/share for the 427MW, none of which we believe is currently reflected in BCE\u2019s share price or the company\u2019s three-year guidance. <\/p>\n \u201cOur $43.50 target price now reflects $8\/share of value for data centres ($5 for the Saskatchewan project and the 73MW, and $3 for the uncontracted 427MW). This could rise to $11\/share if (but more likely when) the remaining available power is contracted. BCE remains at the top of our telecom pecking order and we expect its accelerating growth profile to be increasingly recognized by investors.\u201d<\/p>\n The analyst kept a \u201cbuy\u201d rating and $21 target for Telus shares \u201cmostly due to the limited disclosure and communication on their data centre strategy; regardless, we expect T will monetize its access to power (up to 150MW).\u201d The average is $20.23.<\/p>\n \u201cWe have fewer financial details on T\u2019s data centre strategy relative to BCE,\u201d he explained. \u201cAt present, the company is looking to scale its business to 150MW, which is materially below BCE\u2019s capacity, although we believe management is working on securing more power access over time. Unlike BCE, T plans to own the AI chips deployed within its data centres. This approach has the potential to make projects with smaller power allocations much more meaningful endeavors given the high portion of costs related to chips. Moreover, T is leveraging existing data centre infrastructure, which has enabled the rapid launch of its first campus in Rimouski. In addition, T expects to leverage TELUS Digital\u2019s AI capabilities to deliver adjacent services.\u201d<\/p>\n In other analyst actions: <\/p>\n * RBC\u2019s Keith Mackey raised his Calfrac Well Services Ltd. (CFW-T<\/a>) target to $8 from $7.50 with a \u201csector perform\u201d rating, while ATB Cormark\u2019s Tim Monachello bumped his target to $7.50 from $7.25 with an \u201coutperform\u201d rating. The average on the Street is $7.25.<\/p>\n \u201c1Q26 EBITDA was ahead of our estimates as North America margins improved on enhanced cost management. We have increased our 2026\/27 EBITDA estimates by 7 per cent\/10 per cent,\u201d said Mr. Mackey. <\/p>\n * Mr. Mackey also raised his Trican Well Service Ltd. (TCW-T<\/a>) target to $8.50 from $7.50 with a \u201csector perform\u201d rating. Other changes include: ATB Cormark\u2019s Tim Monachello to $8.50 from $8 with an \u201coutperform\u201d rating and TD Cowen\u2019s Aaron MacNeil to $8 from $7 with a \u201chold\u201d rating. The average is $8.10.<\/p>\n \u201cTrican\u2019s 1Q26 results were slightly better than we expected on a strong quarter-end revenue push. We continue to see Trican as a leading Canadian service provider, with strong offerings in pressure pumping and cementing, but see stronger relative opportunity in select US pressure pumpers at present. We increase our 2026 EBITDA estimates slightly and our 2027 estimate increases by 6 per cent,\u201d said Mr. Mackey.<\/p>\n * RBC\u2019s Nelson Ng increased his target for Chemtrade Logistics Income Fund (CHE.UN-T<\/a>) to $20, matching the average, from $18, keeping an \u201coutperform\u201d rating.<\/p>\n \u201cChemtrade reported solid Q1\/26 results in line with consensus and reiterated full-year guidance. We believe the outlook for H2\/26 is favourable, supported by higher prices for caustic soda, chlorine, and sulphuric acid. We also expect Chemtrade to resolve the perpetuity concerns regarding its rezoning application for its North Vancouver facility. We are raising our price target to $20 from $18 on the back of higher prices for some chemicals, and we assume that the North Vancouver facility will be successfully rezoned,\u201d said Mr. Ng. <\/p>\n * In response to in-line first-quarter results, Raymond James\u2019 Steven Li cut his Constellation Software Inc. (CSU-T<\/a>) to $3,200 from $3,700 with a \u201cmarket perform\u201d rating, while BMO\u2019s Thanos Moschopoulos lowered his target to $3,500 with an \u201coutperform\u201d rating. The average is $4,243.33.<\/p>\n \u201cMaintenance organic growth has been slower in recent quarters and this trend persisted in 1Q (4 per cent at cc, lowest in past 2 years). However, M&A is off to a strong start in both 1Q and 2Q,\u201d Mr. Li said.<\/p>\n * RBC\u2019s Pammi Bir moved his target for units of Crombie REIT (CRR.UN-T<\/a>) to $18, above the $17.90 average, from $16.50 with a \u201csector perform\u201d rating.<\/p>\n \u201cOn balance, no big surprises coming out of Q1. In the face of broader macro unease and a sluggish economy, we expect organic growth to continue printing in the low-single digits, modestly ahead of CRR\u2019s longterm target. As well, its recent transactions further illustrate the ability to flex its strategic ties with Empire to drive growth. Broader market transactions have also made a good case for compression in retail REIT NAV cap rates, particularly grocery anchored. In short, CRR\u2019s premium relative valuation seems well supported,\u201d said Mr. Bir. <\/p>\n * Desjardins Securities\u2019 Lorne Kalmar raised his CT Real Estate Investment Trust (CRT.UN-T<\/a>) target to $19 from $18 with a \u201chold\u201d rating. Other changes include: Scotia\u2019s Himanshu Gupta to $18.50 from $17 with a \u201csector perform\u201d rating, Raymond James\u2019 Brad Sturges to $19 from $18.75 with a \u201cmarket perform\u201d rating and TD Cowen\u2019s Sam Damiani to $18 from $17.50 with a \u201chold\u201d rating. The average is $17.50.<\/p>\n \u201cCRT delivered a slightly better-than-expected quarter and announced three new acquisitions totalling $43-million,\u201d said Mr. Kalmar. \u201cThe 1Q beat drove a 4-per-cent increase in our estimates. We are now forecasting 4-per-cent average FFOPU [funds from operations per unit] growth in 2026\/27. However, in consideration of its current valuation, both relative to historical and its retail peers, and the 14-per-cent total potential return to our revised $19 target.\u201d<\/p>\n * Scotia\u2019s John Zamparo cut his George Weston Ltd. (WN-T<\/a>) target to $102 from $106 with a \u201csector perform\u201d rating. The average is $112.20.<\/p>\n \u201cWN\u2019s 500 basis points outperformance against Loblaw year-to-date has resulted in a sum-of-the-parts (SOTP) discount of 14.7 per cent, right at the longer term average,\u201d he said. \u201cThough we view WN as a lower-cost mechanism to gain exposure to Loblaw, we prefer to see a wider discount in order to become more constructive. Our neutral stance on L is based on what we expect will be relatively lower earnings growth this year amidst elevated competition in the sector. We maintain our SP rating for WN and reduce our target price to $102 which reflects current prices of L and CHP.UN, as well as WN\u2019s $600-million equity investment in the latter.\u201d<\/p>\n * Updating his forecast following last week\u2019s quarterly release, TD Cowen\u2019s Menno Hulshof trimmed his Imperial Oil Ltd. (IMO-T<\/a>) target to $156 from $157 with a \u201csell\u201d rating. The average is $146.18.<\/p>\n * National Bank\u2019s Matt Kornack trimmed his Nexus Industrial REIT (NXR.UN-T<\/a>) target to $8.50 from $8.75, which is the average, keeping\u00a0 a \u201csector perform\u201d rating.<\/p>\n \u201cNXR\u2019s Q1\/26 results came in a bit lighter than expected, owing to two small tenant vacancies and limited leasing completed in the quarter (although the MTMs were strong on the space that was signed),\u201d said Mr. Kornack. \u201cLooking ahead, the REIT expects to see some additional non-renewals (140,000+ sq. ft.) but is still calling for mid-single digit SPNOI growth for the year. Lease-up of vacant space at existing and recently developed assets should aid overall earnings figures as would the disposition of NXR\u2019s vacant property in Hamilton, which has weighed on results. With regards to fundamentals, management\u2019s tone was mixed and market dependent with Canada still experiencing some localized trade-related macro headwinds.\u201d <\/p>\n * Following better-than-anticipated first-quarter results, National Bank\u2019s Dan Payne raised his Paramount Resources Ltd. (POU-T<\/a>) target to $38 from $36 with a \u201csector perform\u201d rating. Other changes include: Raymond James\u2019 Luke Davis to $36 from $34 with an \u201coutperform\u201d rating and RBC\u2019s Michael Harvey to $35 from $32 with a \u201csector perform\u201d rating The average is $33.51.<\/p>\n \u201cStrength of execution remains its hallmark, as it maintains (and augments) momentum and progress towards meaningful value catalysts in the outlook; POU is poised for a 24-per-cent return profile (vs. peers 19 per cent) on leverage of 0.3 times (in line with peers), while trading at 5.2 times 2027 estimated EV\/DACF (vs. peers 4.1 times),\u201d said Mr. Payne. \u201cThe increase in target price is ascribed to earnings outperformance and tailwinds to forecasts through the outlook.\u201d <\/p>\n