Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
Desjardins analyst Benoit Poirier says he supports the transaction announced last night that will see Aecon Group Inc. (ARE-T<\/a>) purchase Oaktree\u2019s convertible preferred equity investment in Aecon Utilities (AU) for C$320m, restoring its 100% ownership. He raised his price target to C$55 from C$52 but maintained a \u201chold\u201d rating. <\/p>\n \u201cAecon now regains strategic and operational control of the full upside potential of the utilities business. We expect the balance sheet to remain in great shape,\u201d Mr. Poirier said in a note to clients. <\/p>\n \u201cWe now forecast C$1.61 adjusted FD [fully diluted] EPS for FY26 and C$2.01 for FY27, up from C$1.50 and C$1.94, respectively,\u201d he added. <\/p>\n \u201cARE regains strategic and operational control of the full upside potential of the utilities business, which is poised to benefit from a strong industry backdrop. Utilities have historically generated ~9\u201310% EBITDA margins compared with ARE\u2019s ~5% consolidated margins. Additionally, the transaction allows ARE to save on PIK interest that it would have had to pay. The 13x multiple paid sits within the 12\u201316x FY26 range for comparable shorter-cycle maintenance peers and supports revising upward our sum-of-the-parts (SOTP) multiple for AU. Concretely, this results in immediate accretion, and we model leverage to remain at a comfortable place, ending 2026 at 1.7x and 2027 at 1.1,” the analyst said. <\/p>\n Elsewhere, TD analyst Michael Tupholme cut his price target to C$61 from C$62, explaining that the cost of purchasing the preferred shares was above his estimates for carrying value. Stifel analyst Ian Gillies upgraded the stock to a \u201cbuy\u201d from \u201chold\u201d and hiked his target to $54 from $46. And Raymond James analyst Frederic Bastien cut his price target to C$52 from C$54 and maintained a \u201cmarket perform\u201d rating. <\/p>\n For more on the announcement, and analyst reaction to it, see our small-cap stocks to watch report<\/a>. <\/p>\n TD Cowen analyst John Shao hiked his price target on BlackBerry Ltd. (BB-N<\/a>) to US$8 from US$5 to reflect the strength seen at the start of the company\u2019s fiscal 2027. Shares of the company spiked nearly 20% on Thursday.<\/p>\n \u201cFollowing the material FQ1 beat, we have raised our estimates to reflect commentary around a healthy outlook for both SC and QNX,\u201d Mr. Shao said in a note to clients. \u201cWe sensed rising optimism on larger SC deals in the pipeline, and expanding licence revenue supports acceleration within QNX. On profitability, as the majority of investment in S&M for QNX was rolled out this quarter, we model a modest increase in opex and evident operating leverage ahead. Our new expectations land above the higher end of the guide as we believe management are continuing to exercise conservatism on the outlook.\u201d<\/p>\n \u201cOur SC multiple is now 9.5x-10.0x our C2027 EBITDA estimate (from 9.0x) and QNX is 40.0x-40.5x (from 32.0x). We see the discount to larger and mature SC peers at 32.3x C2027 EBITDA as being justified, while the increased QNX multiple reflects improved execution and large Alloy Kore deals in the pipeline to potentially move the needle,\u201d he added. <\/p>\n Despite the healthy hike to his price target, he is maintaining a \u201chold\u201d rating. <\/p>\n \u201cWhile we see BlackBerry as well positioned to benefit from Physical AI should the opportunity materialize, the stock has risen materially over the past two months (~100%). We believe the rally has been supported in part by improved execution and a corresponding valuation re-rating, but more importantly reflects elevated expectations around Physical AI as an early-stage theme. Given these expectations, we anticipate continued near-term volatility. As such, we view the current risk-reward as balanced,\u201d he said.<\/p>\n Elsewhere, Raymond James analyst Steven Li raised his price target to US$9.50 from US$4.75 and maintained a \u201cmarket perform\u201d rating.<\/p>\n Read more from the Globe\u2019s Sean Silcoff: BlackBerry sheds dubious label as shares soar on rosy results and outlook<\/a><\/p>\n National Bank analyst Cameron Doerksen raised his price targets on both of Canada\u2019s major railways as he increased his valuation multiples to reflect multiple expansion among their North American peers. <\/p>\n Canadian National Railway Co.\u2019s (CNR-T<\/a>) target went to C$173 from $164, while Canadian Pacific Kansas City Ltd.\u2019s (CP-T<\/a>) went to C$132 from C$125. CN is rated \u201csector perform\u201d and CPKC \u201coutperform.\u201d<\/p>\n \u201cShares of both CN and CPKC have performed well so far in 2026 (CNR up ~26% and CPKC up ~22% versus S&P TSX up ~10%) and in our view valuations have become less compelling,\u201c Mr. Doerksen said in a note to clients.<\/p>\n Overall, the analyst said he continues to have a \u201cmarginal\u201d preference for CPKC over CN.<\/p>\n \u201cWe expect Q2 results for both CN and CPKC to be largely in line with current street expectations, and we expect both railroads to reiterate full-year guidance,\u201d he said. <\/p>\n \u201cCN sports a lower valuation while CPKC enjoys a superior earnings growth profile for 2026 and 2027. In addition, in our view, with its higher exposure to bulk volumes and lower exposure to Canada-U.S. cross-border trade, CPKC shares arguably face lower sentiment headwinds around USMCA uncertainty than does CN. On our updated forecast, CN shares trade at 22.1x 2026 P\/E (19.7x 2027) while CPKC trades at 24.6x 2026 (21.5x 2027) versus the U.S. peer group at 23.9x 2026 and 21.4x 2027 on average,\u201d Mr. Doerksen said.<\/p>\n Analysts at Barclays also raised their price targets on the Canadian rails. CN Rail\u2019s target went to C$155 from C$135, while CPKC\u2019s went to C$145 from C$135. <\/p>\n Aritzia Inc.\u2019s (ATZ-T<\/a>) fiscal 2027 appears to be off to a strong start, said TD Cowen analyst Brian Morrison.<\/p>\n \u201cWe forecast Q1\/F27 revenue (~$926mm) at the high end of management\u2019s $900mm-$925mm guidance, driven by brand momentum, a resonating Spring\/Summer assortment, mobile app accelerating eCommerce growth, and heightened investment in y\/y digital marketing. Our checks support our view of strong revenue growth that should drive margin increments toward the high end of its Q1\/F27 gross margin guidance (~275bps y\/y inclusive of tariff headwinds) and SG&A leverage of ~75bps y\/y,\u201d Mr. Morrison said in a note to clients. <\/p>\n \u201cBased upon Aritzia\u2019s F2027 guidance, we imply that mid-point EPS is ~ $4.50-$4.60, relative to current consensus of $4.63. This is based upon revenue of ~$4.5bln\/ EBITDA margin of ~19.0%. We believe buyside expectations are geared toward the high-end of management\u2019s guidance that we imply is ~$4.80-$4.85. Aritzia is unlikely to make material revisions to annual guidance after the seasonally weak Q1, but we believe visibility toward the high-end may be required to maintain share price momentum,\u201d he added. <\/p>\n Mr. Morrison maintained a \u201cbuy\u201d rating and C$183 price target, and summed up his views optimistically: \u201cFrom an operating perspective, there is not much not to like about Aritzia, and the market has rewarded the share price appropriately. The brand is resonating, its financial targets appear achievable, there remains runway for growth in the US, e-commerce, and internationally, and its balance sheet is pristine. At the current valuation, we believe Aritzia needs to beat Q1\/F27 consensus and have consensus raised to maintain valuation\/share price momentum. Heading into the quarter, we believe they are on track to do so.\u201d<\/p>\n Elsewhere, UBS raised its price target as it also looked ahead to Aritzia\u2019s fiscal first quarter. It went to C$204 from C$189, with a \u201cbuy\u201d rating reiterated. <\/p>\n RBC Capital Markets analyst Pammi Bir raised his price target on Primaris Real Estate Investment Trust (PMZ-UN-T<\/a>) to C$23 from C$21 after taking a tour of one of the company\u2019s properties. He continues to rate the REIT \u201coutperform\u201d.<\/p>\n \u201cPMZ hosted a tour of Oshawa Centre (OC), a property acquired in Jan-2025. Overall, we came away with a stronger appreciation of the value creation opportunity from robust CRU [commercial retail unit] leasing velocity, the repositioning of former anchor boxes, and potential monetization of excess land. In short, the property fits squarely within PMZ\u2019s focus on acquiring regionally dominant malls with NOI [net operating income] upside. At a 7.8% implied cap rate, we continue to see attractive growth at a very reasonable price,\u201d the analyst said. <\/p>\n Canaccord Genuity analyst Yuri Lynk raised his price target on Badger Infrastructure Solutions Ltd. (BDGI-T<\/a>) to C$112 from C$90 after independent channel checks indicated a tightening market for hydrovac services in the U.S. <\/p>\n \u201cWe continue to view Badger as one of the most compelling organic growth stories within our coverage universe as hydrovac excavation remains under-penetrated in the U.S., while the trend towards \u2018safe digging\u2019 only strengthens. Our refreshed financial model sees 16% EPS growth in 2026, 24% in 2027, and 21% in 2028, all while generating pre-tax ROIC [Return on Invested Capital] north of 20% and self-funding the growth capex required to achieve our estimates. Valuation in the context of this financial profile is undemanding, in our view, and we would be adding to positions at current levels,\u201d he said in a note.<\/p>\n Mr. Lynk is maintaining a \u201cbuy\u201d rating. <\/p>\n