Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
TD Cowen analyst Vince Valentini thinks a recent drop in shares of BCE Inc. (BCE-T<\/a>) is \u201coverdone\u201d and \u201cnot justified\u201d leading him to upgrade his recommendation to \u201cbuy\u201d from \u201chold\u201d on Thursday.<\/p>\n \u201cBCE shares have declined 13 per cent since early June, a move we believe has been driven largely by headline risk around potential SpaceX\/Starlink disruption, an issue we flagged in our April report,\u201d he said. \u201cWe expect BCE\u2019s Q2 results on August 6 to be a non-event (no changes expected in 2026 guidance, and some one-time item headwinds that can be easily explained.\u201d<\/p>\n In a client note released before the bell, Mr. Valentini said BCE\u2019s long-term fundamentals and dividend are intact, and he expects incremental data centre contract announcements over the next few months.<\/p>\n \u201cWe acknowledge that Starlink could capture some incremental rural internet subscribers (primarily legacy DSL customers) over the next few years, and we estimate Starlink has already reached roughly 500K rural homes in Canada. BCE has a larger base of homes passed (both urban and rural) than its peers, but we believe any wireline broadband share loss to Starlink would be gradual and manageable. Recent U.S. research on Starlink\/SpaceX potentially entering the wireless market may be adding to broader investor concerns, but we remind readers that a comparable wireless entry strategy is unlikely in Canada given foreign ownership rules, spectrum constraints, and the structure of the mandated MVNO framework. <\/p>\n \u201cIn our view, this makes Canadian telecom stocks, including BCE, a relative haven from the uncertainty around potential U.S. wireless disruption. Impact: Neutral to our estimates and long-term outlook.\u201d<\/p>\n Mr. Valentini promoted \u201cfive attractive elements of the BCE investment thesis: 1) recent data centre wins; 2) potential SOTP [sum-of-the-parts] upside; 3) meaningful valuation multiple compression; 4) an attractive dividend yield supported by a healthy payout ratio; and 5) BCE owns most of its extensive telecom infrastructure.\u201d <\/p>\n \u201cWe also note the improving industry pricing dynamics in Canadian telecom (good for BCE as well as its peers), with wireless promotions being much more disciplined in Q2 versus Q1, and with wireline\/internet price increases from both Bell and its cable competitors across ON\/QC seeming to have gained traction in the past few months.\u201d<\/p>\n Seeing \u201ccurrent levels as an attractive entry point,\u201d he maintained a $37 target for BCE shares. The average on the Street is $38.38, according to LSEG data.<\/p>\n Elsewhere, when BCE reports its second-quarter results on Aug. 6, National Bank Financial analyst Adam Shine is expecting \u201cgrowth to step down compared to 1Q given tougher comparables.\u201d<\/p>\n Mr. Shine is currently projected consolidated revenues to rise just 0.9 per cent year-over-year to $6.138-billion, which is below the Street\u2019s expectation of $6.237-billion. He sees adjusted earnings per share falling 1.4 per cent to 62 cents versus the consensus of 67 cents.<\/p>\n \u201cEx-Ziply, we see Revs falling 3 per cent and Adj. EBITDA down 3.5 per cent,\u201d he added. \u201c2Q25 saw Wireline Product revs up $100-million due to finance lease accounting for Mission Flats (MF) AI DC, Wireless Service revs up $30-million given G7 meeting, and Wireline Service revs up $17-million from Smart Home (SH) business sold last October. Better adjusting for latter, we reduced our forecast for total revs by $154-million and Adj. EBITDA down $73-million.\u201d<\/p>\n Mr. Shine trimmed his forecast for the quarter, leading him to reduce his target for BCE shares by $1 to $38, keeping an \u201coutperform\u201d rating. The average target on the Street is $38.38.<\/p>\n “Besides forecast revisions, we lowered Ziply multiple in NAV negative 1 times amid lighter traction so far in 2026 and elevating U.S. competitive intensity,” he said.<\/p>\n Separately, Mr. Shine thinks Telus Corp.\u2019s (T-T<\/a>) second-quarter results, which are due to be release on July 31, will likely be \u201csoft [but] trumped\u201d by a \u201cnecessitated\u201d reset to its dividend policy.<\/p>\n While acknowledging the telcom giant began a \u201cnew chapter\u201d on July 1 with an \u201coverdue\u201d CEO change as Victor Dodig replaced Darren Entwistle, who was at the helm for 26 years, he said the question of the sustainability of its dividend will linger.<\/p>\n \u201cVictor Dodig\u2019s entitled to 100-day plan, but he and Board have 30 days to reset dividend policy and offer insights on monetization related to Health, Agriculture & real estate,\u201d he said. \u201cWe also believe Public Mobile price aggression needs to be rethought. Too many plates have been spinning for too long. They need not crash, but it\u2019s time for better execution. Mr. Dodig is taking over Telus as its stock hit a 52-week low on June 30 (down 35 per cent from its 2025 high). Our forecast now assumes 40-per-cent cut to dividend and elimination of DRIP discount.\u201d<\/p>\n Outgoing Telus CEO presents sunny view of his tenure, despite stock price challenges<\/a><\/p>\n Like his changes to his forecast for rival BCE, Mr. Shine cut his expectations for Telus. He now sees total revenue falling 1.5 per cent to $5.006-billion, which is under the consensus of $5.081-billion. He has adjusted earnings per share sliding 15.7 per cent to 19 cents, which is 2 cents less than the Street\u2019s expectation.<\/p>\n Keeping his \u201coutperform\u201d rating, Mr. Shine lowered his target for Telus shares to $19 from $20. The average is $19.91.<\/p>\n “Besides forecast changes (including dividend cut), we reduced Health multiple by 3 times to 10 times given lighter growth & reset peer valuation ranges and Digital multiple by 1 time amid 1H performance decline,” he said.<\/p>\n Stifel analyst Daryl Young thinks Bombardier Inc. (BBD-B-T<\/a>) stock now sits \u201cat a transition point, with the company having just completed a remarkable five-year turn-around plan and commensurate valuation re-rate.\u201d<\/p>\n \u201cHowever, we think the industry backdrop will remain stronger-for-longer, with potential for 15-per-cent earnings growth out to 2030, supporting an upside scenario to $550.00 per share. <\/p>\n \u201dMoreover, Bombardier is at the sweet-spot in its capex\/aircraft development cycle, providing significant FCF and capital allocation optionality. Drivers of our thesis include: (1) structurally improved market dynamics with record multi-year OEM backlogs, (2) 150 basis points of margin expansion potential from mix, operating leverage, and easing supply chain challenges, (3) greater mix of recurring\/resilient services revenues, and (4) a generational opportunity in defence spending. Moreover, Bombardier screens as a HALO [heavy assets, low obsolescence] stock.”<\/p>\n In a client report titled Going the Distance, Fast, Mr. Young initiated coverage of the Montreal-based business jet manufacturer with a \u201cbuy\u201d recommendation, touting the impact of its \u201cgrowing service and defence offering\u201d alongside a \u201crobust industry backdrop with multi-year backlogs.\u201d<\/p>\n \u201cThe COVID-19 pandemic has triggered a step-change for private aviation, spawning a new cohort of flyers through record wealth creation and the proliferation of the fleet\/charter business model (now represents more than 50 per cent of industry flying). 2025 was a new high-water mark for private aviation with flying hours more than 20 per cent above pre-pandemic levels,\u201d he said \u201cHowever, supply-side constraints have kept OEM production in check, while memories of the 2008-2009 Great Financial Crisis have also led to a more rational approach to capacity and backlog management. All-in, the market remains healthy with robust pricing\/margins and multiple-years of production visibility (Bombardier has a record $20-billion firm backlog plus greater than $12-billion in option orders, supporting a production ramp to more than 180 aircraft annually).\u201d<\/p>\n \u201cServices bring growth and stability: Bombardier has been aggressively growing its aftermarket service offering, capturing 50-per-cent market share of its in-service fleet of 5,200 aircraft in 2024 and well on its way to achieving its aspirational 70-per-cent goal (similar to Gulfstream\u2019s 70 per cent or more). Moreover, service demand is seeing structural tailwinds from: 1) high utilization fleet operators (fly 3-5 times more) which favour OEM service packages, 2) a growing mix of large\/medium-sized aircraft that are biased to OEM service, and 3) longer-term upside from surging defence demand (AEW&C aircraft have very high utilization rates and related service needs). Bombardier continues to expand its global service footprint including construction of a $70-$80-million facility expansion in Singapore and the tuck-in acquisition of Velocity Maintenance Solutions in the U.S. to expand its MRO and mobile response capabilities. Service brings more than 20-per-cent EBITDA margins and more resilient\/recurring revenues through the cycle with minimal capital requirements.\u201d<\/p>\n Mr. Young also said 2025 marked Bombardier\u2019s inflection to sustainable FCF generation ($1.1-billion reported), \u201creflecting the culmination of its manufacturing transformation and significant debt reduction.\u201d <\/p>\n \u201cLooking forward, Bombardier is in the sweet spot of its product development cycle, harvesting its investments in the Global 7000\/7500 platform and no new clean-sheet aircraft planned before 2030,\u201d he noted. \u201cAdditionally, the manufacturing and service facility expansions underway are not demanding, leading to a FCF conversion rate of more than 60 per cent (based on EBITDA) and more than $6.0-billion of cumulative cash generation by 2030. <\/p>\n \u201cWe expect a portion of it to be used to build out its service network (including acquisitions) but we think a dividend and\/or share repurchase program are imminent.\u201d<\/p>\n Seeing it \u201cpoised to benefit from the generational shift in defence spending, with its aircraft proving uniquely suited for NATO nations,\u201d Mr. Young set a target of $390 for Bombardier shares. The average target on the Street is $321.72.<\/p>\n \u201cAt 14.4 times EBITDA (2027 estimates), Bombardier has seen a strong valuation re-rate but we think the combination of more than 15-per-cent EPS growth out to 2030 and an increasing mix of service\/defence revenue justify the valuation,\u201d he said \u201cMoreover, capital deployment could become an increasing part of the near-term story.\u201d <\/p>\n While applauding Aritzia Inc.\u2019s (ATZ-T<\/a>) success in executing its expansion strategy, Ventum Capital Markets analyst George Doumet thinks its shares \u201calready discount a significant portion of [its] long-term growth opportunity.\u201d<\/p>\n Accordingly, he initiated coverage of the Vancouver-based clothing retailer with a \u201cneutral\u201d recommendation on Thursday.<\/p>\n “Since its IPO, Aritzia has navigated shareholder overhangs, built a powerful U.S. growth engine, capitalized on the post-COVID demand surge, worked through an inventory correction, and reaccelerated U.S.-based growth against a more challenging consumer backdrop,\u201c said Mr. Doumet. \u201dWhile investor sentiment (and valuation) have fluctuated over time, the Company\u2019s\u00a0Everyday Luxury\u00a0strategy has remained remarkably consistent. The result: EPS has compounded at roughly\u00a025 per cent annually over the past decade, with the shares trading today at\u00a033 times NTM [next 12-month] P\/E, broadly in line with IPO levels.<\/p>\n \u201cSouth of the border: North of expectations. The current leg of the story remains centred on U.S. expansion, where Aritzia operates just 76 boutiques despite the market already representing more than 60 per cent of revenue. Supported by U.S. productivity, same-store sales have beaten expectations over the last seven quarters, driven by growing brand awareness and a proven Tier-1 real estate strategy. Beyond the U.S., we view international expansion as longer-term upside, with a disciplined and surgical flagship-led approach offering a capital-light path to further brand and digital growth.\u201d<\/p>\n In a client report released before the bell titled Quality Doesn\u2019t Come Cheap, Mr. Doumet said Aritzia will enter its next Investor Day with \u201cconsiderable credibility.\u201d <\/p>\n \u201cThe 2022 \u201cPowering Stronger\u201d plan has largely been delivered ahead of schedule, with revenue surpassing its $3.5\u20133.8-billion F2027 target a full year early and EBITDA margins approaching the original 19-per-cent objective,\u201c he said. \u201dLooking ahead, we expect the next five-year plan to follow the same playbook: continued U.S. expansion, digital growth, modest margin expansion toward 20 per cent, and increased capital returns from a debt-free balance sheet. Together, these levers support a credible path to grow revenue and EPS at CAGRs [compound annual growth rates] of 17 per cent and 25 per cent, respectively, by F2031.”<\/p>\n While Mr. Doumet continues to expect \u201cstrong\u201d earnings growth, projecting earnings per share to jump 40 per cent in fiscal 2027, he did warn of the risk of a valuation multiple compression as same-store sales growth \u201cnormalizes.\u201d The Street is projecting 2027 and 2028 gains of 17 per cent and 8 per cent, versus 30 per cent currently.<\/p>\n \u201c\u201cThe key debate is whether same-store sales growth experiences a soft or hard landing,\u201d he explained. \u201cWe view Q3\/F27 as the first meaningful test, with materially tougher comparisons. A soft landing (SSSG in the low double-digit range exiting Q4\/F27) likely supports the current premium valuation, while a hard landing (mid-single digits) would likely lead to multiple compression (similar to recent Groupe Dynamite (GRGD-TSX, BUY, $95.00 PT) setup). Either way, we see a long-term algorithm of 25-per-cent EPS growth adequately supported by a 30 times-plus PE NTM [price-to-earnings next 12-month] multiple.\u201d<\/p>\n Mr. Doumet set a target of $180 for Aritzia shares, exceeding the current average on the Street of $177.25.<\/p>\n \u201cOn a growth-adjusted basis, Aritzia does not screen cheap against specialty-retail peers,\u201d he concluded. \u201cIts expected EPS CAGR over the next two years sits well above the peer average, but the premium arguably reflects that very trajectory, and we do not expect EPS growth to accelerate beyond our forecast horizon. Assuming EPS growth in the mid 20-per-cent range, consistent with what we view as a reasonable target for the upcoming investor day, yields EPS of $8.50\u201310.50 by F2031. Discounted back, that implies an effective forward multiple of 23\u201328 times, broadly in line with today\u2019s ~28x, and a free-cash-flow yield of just 2\u20133 per cent. Put differently, we think the market is already pricing in much of a successful five-year plan.”<\/p>\n Elsewhere, in a report previewing the release of its first-quarter 2027 results on July 9, RBC\u2019s Irene Nattel kept an \u201coutperform\u201d rating and $193 target, expecting results to reach the high end of the retailer\u2019s guidance and emphasizing its \u201csector-leading momentum.\u201d<\/p>\n \u201cForecasts essentially unchanged, supported by channel checks including peer performance and sustained alt data strength through the period, management commentary on the Q4 call around \u2018exceptional momentum\u2019 continuing into Q1, and strong execution of Spring\/Summer assortments and strategic initiatives notably boutique expansions, digital investments, and continued uptake of the mobile app,\u201d said Ms. Nattel.<\/p>\n In a separate report released Thursday titled Built for the Runway, Priced for the Rack, Mr. Doumet initiated coverage of Groupe Dynamite Inc. (GRGD-T<\/a>) with a \u201cbuy\u201d rating, touting \u201ca sexy risk\/reward with no stretch needed.\u201d<\/p>\n \u201cWe see a credible path for GRGD to compound EPS and free cash flow per share at 22 per cent and 23 per cent, respectively, over the next five years,\u201d he said. \u201cEven under a more conservative scenario where traffic is flat and growth is driven primarily by more moderated AUR [average unit retail] increases and store optimization, earnings\/cash flow still compound at attractive 16-per-cent\/18-per-cent rates. Yet at 15.0 times forward earnings, GRGD trades near the peer group average despite its significantly superior growth, margins, returns, and cash generation. We believe the market underestimates both the durability of the growth algorithm and the length of runway that remains ahead.<\/p>\n \u201cBuybacks never go out of style. GRGD\u2019s strong free cash flow generation and debt-free balance sheet provide a powerful growth lever. We estimate the Company could repurchase roughly 24 per cent of its shares outstanding by F2031. Following the recent share price pullback, we expect GRGD to accelerate its buyback activity.\u201d<\/p>\n Mr. Doumet said the Montreal-based company, which designs and distributes women\u2019s apparel under the brands Dynamite and Garage, has become a favourite for investors based on a story of \u201cpremiumization, productivity growth, and digital expansion.\u201d<\/p>\n \u201cWe see a path to sustained AUR-led growth as brand equity strengthens, accompanied by a highly agile supply chain that drives lower markdowns and structurally superior margins,\u201d he added. \u201cFurthermore, GRGD is also benefitting from a growing e-commerce channel that we believe can increase from 18 per cent of sales today to 25 per cent over the medium term.<\/p>\n \u201c… with a long runway ahead.\u00a0We believe GRGD remains in the early innings of its store growth opportunity. With 307 stores today and a target of 350 by F2028, management\u2019s expansion plans appear achievable, particularly given Garage\u2019s U.S. footprint of136 stores, which offers a significant runway for future growth. Recent successful UK openings further validate the concept\u2019s portability. Finally, given where the shares trade today, we view international expansion as \u201cfree optionality\u201d rather than a core assumption in our estimates.”<\/p>\n While noting a recent deceleration in same-store sales from the high twenties into the high single-digits range (which he expects to be the baseline going forward) has led a compression in its trading multiple, Mr. Doumet thinks recent results \u201chave not caused any negative earnings revisions, but instead eclipsed what we believe remains one of the more compelling longer-term earnings growth stories in specialty retail.\u201d<\/p>\n \u201cLooking ahead, AUR should remain a robust growth driver and markdown rates should remain low,\u201d he added. \u201cAs a result, we believe the market is placing disproportionate weight on near-term comp trends while overlooking GRGD\u2019s ability to compound growth over the medium to longer term.\u201d<\/p>\n The analyst set a target of $95 per share. The average is $84.90.<\/p>\n In other analyst actions: <\/p>\n * Resuming coverage following the close of its $800-million acquisition of PC Financial<\/a>, CIBC\u2019s Paul Holden hiked his EQB Inc. (EQB-T<\/a>) target to a high on the Street of $151, up from $116, with an \u201coutperformer\u201d rating. <\/p>\n \u201cThe near-term earnings outlook is challenged due to Canadian consumer credit pressure, well known and expected. We think the stock should be bought at current levels based on our EPS growth outlook through F2028 (21-per-cent CAGR from F2025), which includes upside from lower loan losses and from growing deposits with PC Financial customers,\u201d said Mr. Holden.<\/p>\n * Ventum Capital Markets\u2019 Robin Kozar initiated coverage of Vancouver-based First Mining Gold Corp. (FF-T<\/a>) with a \u201cbuy\u201d rating and $1.40 target. The average is $1.42.<\/p>\n \u201cFirst Mining offers exposure to two large undeveloped gold projects in Canada. We believe a positive federal Environmental Assessment (EA) decision for the Springpole project is imminent and will be the catalyst that converts a near-decade-long valuation gap into a near-term re-rating opportunity. Beyond Springpole, we view Duparquet as an underappreciated gold project in Quebec. Trading at just 0.2 times P\/NAV and with a list of catalysts on the horizon, we see a pathway to upside share price momentum,\u201d said Mr. Kozar.<\/p>\n * RBC\u2019s Nelson Ng reduced his target for U.S.-listed shares of Methanex Corp. (MEOH-Q<\/a>, MX-T<\/a>) to US$65 from US$70 with a \u201csector perform\u201d rating. The average on the Street is $72.71.<\/p>\n \u201cWith Iran tensions easing and ships cautiously resuming passage thought the Straight of Hormuz, we believe methanol prices (and EBITDA) have peaked in Q2\/26 and will gradually normalize through H2\/26 and into early 2027. Methanex\u2019s posted prices are mixed for July and Q3\/26, and our expectation for the start of share buybacks in H2\/26 can provide some share price support. We are lowering our PT to $65 (from $70) to reflect our view that Methanex\u2019s realized methanol price has peaked in Q2\/26,\u201d said Mr. Ng.<\/p>\n * RBC\u2019s Alistair Rankin upgraded Perth, Australia-based Paladin Energy Ltd. (PDN-ASX, PDN-T<\/a>) to \u201coutperform\u201d from \u201csector perform\u201d with a AUD$13.50 target, up from AUD$11. The average target for TSX-listed shares is $12.37 (Canadian).<\/p>\n \u201cPatterson Lake South (PLS) is shaping up to be one of the most significant uranium developments globally, and we have lifted our valuation driven by both its probability of development and its ultimate scale. With Indigenous opposition risk materially lower than perceived, MBAs secured with key First Nations, and Atlas pointing to a meaningfully larger resource, we upgrade Paladin … and see substantial further upside potential,\u201d he said.<\/p>\n * Following a tour of Primaris REIT\u2019s (PMZ.UN-T<\/a>) Oshawa Centre property as well as recent transaction activity and an operations update, National Bank\u2019s Matt Kornack increased his target for its units to $24 from $21.50 with an \u201coutperform\u201d rating. The average is $23.75.<\/p>\n \u201cThe update confirmed our already positive bias on leasing dynamics and expectations on HBC space. We are taking our target price higher, now in line with our NAV (where we have increased our normalized occupancy to reflect more leasing certainty),\u201d said Mr. Kornack. <\/p>\n * Raymond James\u2019 Steven Li views Quarterhill Inc.\u2019s (QTRH-T<\/a>) US$80-million acquisition<\/a> of all of the assets of the tolling solutions business of Conduent Business Services \u201cvery positively\u201d and raised his target for its shares to $3 from $1.80 with an \u201coutperform\u201d rating. The average is <\/p>\n \u201cThis acquisition brings greater scale, enhanced backlog visibility and meaningful A-EBITDA contribution after anticipated day-one synergies,\u201d he said.<\/p>\n