Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
Ahead of the release of Bombardier Inc.\u2019s (BBD.B-T<\/a>) second-quarter financial results on July 30, National Bank Financial analyst Cameron Doerksen thinks market conditions remain strong, but the business jet manufacturer\u2019s valuation is \u201clooking elevated.\u201d<\/p>\n \u201cAlthough end markets have remained highly positive for Bombardier and a weaker CAD has also likely boosted the stock (CAD share price but USD earnings), we are frankly surprised at how strong the stock has been,\u201d he said. \u201cWe continue to be bullish on growth for Bombardier supported by strong biz jet market fundamentals and growing momentum in Defense, but in our view, valuation is still looking elevated.<\/p>\n \u201cBombardier shares trading at a large premium to the peer group average. The direct aircraft OEM peer group is trading at an average of 13.3 times current year and 11.8 times next year EV\/EBITDA versus Bombardier currently trading at 16.3 times and 15.0 times, respectively, based on consensus estimates. While Bombardier is benefiting from strong end market momentum and valuation is perhaps being boosted by the scarcity of defence-exposed stocks in Canada, the magnitude of the premium the stock is enjoying relative to the peer group is large.\u201d<\/p>\n In a client report released before the bell, Mr. Doerksen emphasized Bombardier\u2019s stock has been \u201cmassively outperforming\u201d peers over the past year, rising 48 per cent in 2026 and 125 per cent over the last 12 months versus gains for the TSX of 11 per cent and 30 per cent, respectively. The Dow Jones Aerospace & Defense Index is up 29 per cent over the past year.<\/p>\n Those gains come amid \u201cpositive\u201d end markets for business jets and sustained defence \u201cmomentum.\u201d<\/p>\n \u201cHigher business jet utilization is typically a leading indicator for new jet demand as well as aftermarket activity,\u201d he said. \u201cAccording to business aviation data provider WingX, global business jet departures so far this year (through the end of June) are up 3.7 per cent compared to the same period last year.<\/p>\n \u201cA key driver for Bombardier\u2019s share price momentum has been success for the company\u2019s Defense segment where revenue surpassed $1.0-billion last year and looks to be well on the way to surpassing management\u2019s targeted $1.5-billion. We highlight recent firm contract awards, contracts for which a Bombardier jet platform has been selected as preferred bidder, and other prospective new contracts that have appeared in recent press reports. Bombardier\u2019s partnership with Saab on the GlobalEye platform is particularly exciting as more countries express interest.\u201d<\/p>\n Maintaining his \u201csector outperform\u201d rating due to valuation concerns, Mr. Doerksen hiked his target for Bombardier shares to $349 from $296. The average on the Street is $332.33, according to LSEG data.<\/p>\n \u201cWe previously valued the stock by applying a 12.5 times EV\/EBITDA multiple to our 2027 forecast, but to better reflect the strong outlook for the company and the share price momentum, we are increasing our target multiple to 14.0 times,\u201d he explained. \u201cOur forecast changes are minor, but the higher multiple and the weaker CAD (CDN$ share price but USD earnings), results in a new target … We see limited upside for the stock in the near term and would look for a better entry point on a pullback to build a position in the stock.\u201d<\/p>\n Calling it \u201ca high-quality but still under the radar supply chain software name with a multi-year growth runway ahead,\u201d TD Cowen analyst John Shao initiated coverage of Tecsys Inc. (TCS-T<\/a>) with a \u201cbuy\u201d rating.<\/p>\n \u201cTecsys enjoys a strong reputation and word of mouth within the healthcare supply chain market, and we expect this to benefit its healthy growth profile driven by market share gains and ARPU [average revenue per user] growth,\u201d he said.<\/p>\n Mr. Shao said the Montreal-based supply chain management software provider is \u201csteadily building the foundation to become a larger and more influential supply chain and logistics software company in Canada.\u201d He sees it \u201cfollowing the same path\u201d as larger peers Descartes Systems Group Inc. (DSG-T<\/a>) and Kinaxis Inc. (KXS-T<\/a>).<\/p>\n \u201cTecsys offers competitive products in healthcare supply chain where rising market\/wallet share gains can support up to 23-per-cent ARR CAGR [annual recurring revenue compound annual growth rate],\u201d he said. \u201cOur channel checks support the observed market positioning. We see multiple drivers for consistent gross margin\/EBITDA margin expansion, ranging from new Cloud infrastructure and improved negotiating power with key suppliers, to economies of scale. As the margin profile improves, we expect the valuation multiple to catch up with supply chain peers trading at a premium.<\/p>\n \u201cMarket is mispricing Tecsys\u2019 SaaS business. With five revenue segments at various growth and margin profiles, we believe this complexity discounts the SaaS business, which has historically delivered a 33-per-cent 5-year CAGR. Incrementally, profitability is on track to converge towards SaaS-like gross margins of 75 per cent from 64 per cent today. Our SOTP [sum-of-the-parts] valuation implies 27-per-cent upside potential, supporting our target price.\u201d<\/p>\n Also touting Tecsys\u2019 \u201cdefensible takeout profile with precedent transactions across both healthcare and Canadian Tech implying a 4-5 times NTM [next 12-month] revenue takeout multiple,\u201d Mr. Shao set a target of $39 per share but sees \u201cup to 90-per-cent upside potential beyond.\u201d The average on the Street is $38.63.<\/p>\n \u201cTecsys is trading at 2.2 times forward consolidated EV\/Sales, which is below its SCM peers at 6.4 times and historical average of 2.6 times,\u201d he said. \u201cWe see this discount as largely due to the dilution effect of the noncore, legacy segments, impacting core SaaS\u2019 multiple. As a result, we value TCS using a SOTP, assigning a 5.0 times forward EV\/Sales multiple to its core SaaS business which translates to a consol. EV\/Sales multiple of 2.5 times. <\/p>\n \u201cIn takeout scenarios, we see meaningfully higher implied valuations, driven by Tecsys\u2019 scarcity value as a scaling, end-to-end sector leader, with improving ARR durability, and a clear path to typical SaaS margins, all of which would be strong attributes in the eyes of potential acquirers, in our view.\u201d<\/p>\n In a report written before Tuesday\u2019s new wave of U.S. strikes against Iran<\/a> titled In Like A Lion, Out Like a Lamb: A Quarter Defined by WTI Volatility, National Bank Financial\u2019s energy equity team, led by analysts Dan Payne and Travis Wood, said their \u201ccommodity assumptions remain reasonable in the US$70-75 per barrel range\u201d heading into second-quarter earnings season for Canada\u2019s energy sector.<\/p>\n \u201cWith a quicker than expected ramp in vessel flow in and out of the Strait, we reduced our Q3 price to capture this, but flag the issue of physical supply ramping to meet what appears to be a mounting overhang of empty tankers,\u201d they added. \u201cWith global inventory of oil and products continuing to trend at the bottom of the 5-year range, we remain constructive on the fundamental backdrop for oil prices, confused by extreme prices of refined products.\u201d<\/p>\n For equities, the analysts continue to see \u201coperational and financial strength\u201d across their coverage universe, which they say is \u201cunderpinned by valuations that have compressed meaningfully, reflecting a 30-per-cent discount to January value with pristine balance sheets and FCF wedges continuing to support buybacks.\u201d <\/p>\n \u201cWhile momentum for the gas-names lags, the benefit of liquids exposure should help generate incremental cash flows this quarter, while the trend of WCSB consolidation (in particular within the Montney) is likely to continue (especially in the face of current valuations),\u201d they said.<\/p>\n While the analysts made modest adjustments to their forecasts, lowering second-quarter cash flow per share and production estimates by 5 per cent and 1 per cent, respectively, they continue to see enticing opportunities throughout the sector.<\/p>\n \u201cThe commodity-price volatility of recent months has been driven largely by geopolitical headlines and temporary spot oversupply rather than a structural deterioration in underlying industry fundamentals,\u201d they noted. \u201cTo illustrate the disconnect, we compare 2027 EV\/DACF multiples based on commodity strips prior to the U.S.\/Iran conflict and at current strip prices following the subsequent crude oil selloff and equity weakness. Despite stronger balance sheets and substantial free cash flow generation through Q1 and estimates for Q2, our coverage is trading at an average discount of almost 1.5 times on 2027 multiples, with virtually every company under our coverage trading at a lower valuation multiple today than prior to the conflict. We note TVE is the lone exception; however, we view this movement more as a function of the stock closing its valuation gap versus peers, driven by improved fundamentals following the recent divestiture of Charlie Lake assets and repositioning as pure-play Clearwater discussed previously.<\/p>\n \u201cIn our view, valuations have compressed meaningfully, with the sector now trading at an 30-per-cent discount to January levels despite pristine balance sheets and FCF generation that continues to support buybacks. We believe this creates an increasingly compelling setup for investors, as business quality has continued to improve through stronger financial positions, disciplined capital allocation, sustainable shareholder returns, and attractive dividend yields.\u201d<\/p>\n With their forecast tweaks, the analysts made these target changes:<\/p>\n Greenfire Resources Ltd. (GFR-T<\/a>, \u201coutperform\u201d) to $12 from $13. The average is $9.83.Imperial Oil Ltd. (IMO-T<\/a>, \u201csector perform\u201d) to $214 from $212. Average: $141.58.InPlay Oil Corp. (IPO-T<\/a>, \u201coutperform\u201d) to $22.50 from $27.50. Average: $28.20.Ovintiv Inc. (OVV-N<\/a>\/OVV-T<\/a>, \u201coutperform\u201d) to US$83 from US$82. Average: US$70.80.Peyto Exploration & Development Corp. (PEY-T<\/a>, \u201coutperform\u201d) to $30 from $29. Average: $27.Strathcona Resources Ltd. (SCR-T<\/a>, \u201coutperform\u201d) to $66 from $68. Average: $52.Tenaz Energy Corp. (TNZ-T<\/a>, \u201coutperform\u201d) to $91 from $90. Average: $80Whitecap Resources Inc. (WCP-T<\/a>, \u201coutperform\u201d) to $26 from $25. Average: $19.13.<\/p>\n \u201cOur updated target prices imply a total return of 60 per cent, with our Outperform and Sector Perform names returning 64 per cent and 48 per cent on average, respectively. We have made no rating change,\u201c they noted.<\/p>\n CIBC World Markets analyst Krista Friesen said the first half of 2026 has \u201cbeen a story of the haves and have-nots.\u201d <\/p>\n \u201cInvestors have crowded into perceived AI winners while steadily exiting businesses viewed as vulnerable to AI disruption, creating one of the widest valuation gaps we have seen in years,\u201d he said. \u201cThe engineering companies have found themselves on the wrong side of that trade despite our belief that AI will not fundamentally alter their long-term growth trajectory.\u201d<\/p>\n Previewing earnings season for the industrial sector, Ms. Friesen said she continues to \u201cdisagree with the market\u2019s classification of the group as \u2018AI losers,\u2019 however she emphasized \u201dit is increasingly difficult to point to a near-term catalyst that will force a reversal in sentiment.” <\/p>\n \u201cFor now, valuation is doing the heavy lifting,\u201d he said. \u201cWe maintain Outperformer ratings on all three Engineering names. ATRL remains our preferred idea given its idiosyncratic nuclear catalysts, but with WSP and STN trading below 10-times consensus 2027 EBITDA estimates, both are entering what we would characterize as a \u2018hold your nose and jump in\u2019 range for long-term investors.<\/p>\n \u201cThat is not to say we are calling for a reversal among the stocks that have benefited from the AI trade. In many cases, we believe those who at first glance may be determined AI \u201cwinners\u201d are benefiting from a number of other tailwinds. Within Construction, for example, BDT is benefiting from factors that extend well beyond data centres. We believe the company is increasingly viewed as a beneficiary of Canada\u2019s push to rebuild industrial capacity, expand defence infrastructure, and accelerate development in strategic regions such as the Arctic and Ring of Fire. These themes have gained momentum alongside the federal government\u2019s broader Build Canada agenda and, in our view, support a structurally higher earnings outlook than investors were underwriting just a few years ago.”<\/p>\n She took a similar video of heavy equipment stocks.<\/p>\n \u201cWhile FTT shares have already appreciated 30 per cent year-to-date, we believe investors continue to underestimate the potential upside associated with Alberta\u2019s emerging role as a data centre hub, said Ms. Friesen. \u201dShould FTT establish itself as a meaningful provider of prime power solutions to the sector, we see additional upside. In that sense, while the first half has undoubtedly rewarded perceived AI winners, we would argue that several of the beneficiaries have catalysts that stand on their own merits.<\/p>\n \u201cWith this note, we have lowered out price targets for WSP and STN to reflect a degree of uncertainty created by AI, raised our price targets for BDGI and BDT given the increasing opportunity tied to industrial development, raised our price target on TIH to reflect the strength in its power systems backlog, and reduced our price target for TVK reflecting uncertainty related to governance.\u201d<\/p>\n Ms. Friesen made these target changes:<\/p>\n Badger Infrastructure Solutions Ltd. (BDGI-T<\/a>, \u201coutperformer\u201d) to $104 from US$85. The average is $92.99.Bird Construction Inc. (BDT-T<\/a>, \u201coutperformer\u201d) to $71 from $65. Average: $65.Stantec Inc. (STN-T<\/a>, \u201coutperformer\u201d) to $137 from $160. Average: $146.25.Toromont Industries Ltd. (TIH-T<\/a>, \u201cneutral\u201d) to $240 from $215. Average: $233.50.TerraVest Industries Inc. (TVK-T<\/a>, \u201cneutral\u201d) to $130 from $160. Average: $175.50.WSP Global Inc. (WSP-T<\/a>, \u201coutperformer\u201d) to $266 from $318. Average: $308.25.<\/p>\n When Aritzia Inc. (ATZ-T<\/a>) releases its latest financial results on Thursday after the bell, Desjardins Securities analyst Chris Li is expecting “another outstanding quarter with robust comp sales, supported by excellent execution (strong product assortment, inventory, enhanced marketing, increasing brand awareness, outsized e-com growth etc).” <\/p>\n \u201cTo the extent ATZ continues to benefit from operational momentum and the K-shaped economy, we believe there is upside to FY27 guidance later this year,\u201d he added. This, along with the investor day in October providing longer-term growth plans, should support ATZ\u2019s premium valuation (approximately 30 times forward P\/E).”<\/p>\n For the first quarter of the Vancouver-based clothing retailer\u2019s 2027 fiscal year, Mr. Li is forecasting revenue of $925-million, meeting the top of its guidance range and $3-million above the consensus (versus $663-million in 2026). He is projecting adjusted earnings per share of 87 cents, which is a penny below the Street but up 45 cents from the same period a year ago. <\/p>\n \u201cOur estimates are largely unchanged and in line with consensus and at the high end of management\u2019s guidance,\u201d he said. \u201cThese include 30.5-per-cent comp sales, 39.5-per-cent revenue growth, 250bps gross margin expansion and 80bps SG&A rate reduction. <\/p>\n \u201cWe believe top-line strength continues to be supported by many factors, including a strong product assortment (spring\/summer collection), enhanced inventory position, strategic investments in marketing, growing brand awareness in the U.S., mobile app launch in October 2025 (we estimate strong early adoption with the app accounting for more than 30 per cent of e-comm revenue translating into high-single digit incremental comps), international website and real estate expansion (new and repositioned boutiques). Continued strength in observed Bloomberg ALT-data also corroborates our expectation of strong revenue performance. Gross margin expansion should be driven by lower markdowns, IMU improvement and leverage on store occupancy costs, partly offset by 200 basis points incremental headwinds from tariffs\/elimination of the de minimis. Scaling and smart spending initiatives should drive SG&A rate improvement.\u201d<\/p>\n While he modestly increased his full-year earnings expectation, Mr. Li reaffirmed a \u201cbuy\u201d rating and 12-month target of $175 for Aritzia shares. The average on the Street is $177.25.<\/p>\n \u201cFollowing last quarter\u2019s very strong \u201c\u2018beat and raise\u2019, the stock appreciated as much as 20 per cent before giving back most of the gains,\u201d he noted. \u201cWe believe this likely reflects moderating expectations given ongoing macro uncertainties and lapping tough comps. To the extent ATZ continues to benefit from the K-shaped economy and growth drivers noted above, we believe upward revisions to FY27 guidance are possible but too early after 1Q results. This along with the investor day should support ATZ\u2019s premium valuation.\u201d<\/p>\n Analysts at TD Securities are expecting bullish commentary from North American trucking companies during second-quarter earnings season, \u201cdriven by continued momentum on the supply side due to regulatory enforcement.\u201d <\/p>\n \u201cCarriers are seeing stable demand with early positive reads on peak season,\u201d they explained. \u201cTransport valuations limit material upside surprises in our view, and look for core demand (for both retail and industrial) improvements for next leg of earnings momentum.\u201d<\/p>\n In a client report previewing earnings season, the analysts adjusted estimates for the truckload and logistics group.<\/p>\n \u201cDry van spot rates continue to outpace seasonality, though normalized following Road Check in May,\u201d they said. \u201cSpot rates continue to track well above last year\u2019s levels; the rate strength is almost entirely driven by capacity reductions. We estimate that nominal spot rates still need to be 20 per cent higher to reach parity with 2014 levels on an inflation-adjusted basis. Carriers describe demand as \u2018stable\u2019; the Cass Freight Index shows shipments improving but still negative year-over-year, pointing to a gradual recovery in freight demand. We are beginning to hear early signs of optimism surrounding peak season \u2018this may be the first real peak season since 2021\u2032. An acceleration of imports has suggested that some incremental strength; the Executive Director of the PoLA attributed the growth inventory replenishment, concerns about fuel costs, trade policy uncertainty, and preparing for peak season. A recent channel check with a TL executive stated that they are already having some conversations with shippers around peak season planning. <\/p>\n \u201cWe expect commentary from carriers through earnings to be very bullish on the trucking cycle and capacity reductions. The DOT has not taken their foot off the gas on its enforcement crackdown, and a trucking executive recently said \u2018we are still in batting practice\u2019 when we asked about what inning we are in regarding truckload capacity. While secular tailwinds should continue into 2H, costs (excluding diesel that has declined meaningfully off highs) continue to creep up for carriers that may limit upside to margins; a trucking executive recently said \u2018we got a 15-per-cent rate increase on a contract, but the carrier group raised their cost by 15 per cent\u2019. Driver pay has re-entered the conversation, along with broader inflation trends increasing and insurance headwinds.\u201d<\/p>\n From an investing perspective, the analysts are expecting bullish commentary but \u2018re hard-pressed to find what incremental commentary will take these stocks another significant leg up, given current valuations.”<\/p>\n \u201cFrom a stock view, the truckload group is trading 5.7 turns above its five-year average, with the group average 51 per cent vs the S&P at up 10 per cent. The LTL [less-than-truckload] group is trading at 5.2 turns above its five-year average, with the group average up 53 per cent year-to-date. …. Given the driver year-to-date has been on the supply side, a strengthening consumer demand picture (as we heard through our preview calls we previously discussed) may offer more upside to earnings and give our names another leg up. For the LTL group, WPS trends turning into upside to tonnage trends may offer more upside to earnings.\u201d<\/p>\n Analyst Tim James bumped his target for shares of Montreal-based TFI International Inc. (TFII-N<\/a>, TFII-T<\/a>) to $154 from $153, keeping a \u201cbuy\u201d rating. The average is US$160.11.<\/p>\n In other analyst actions: <\/p>\n * Seeing an attractive entry point due to share underperformance since a seismic event at its Kamoa-Kakula mine in May 2025, Morgan Stanley\u2019s Carlos De Alba upgraded Ivanhoe Mines Ltd. (IVN-T<\/a>) to \u201coverweight\u201d from \u201cequalweight\u201d and raised his price target to $13.20 from $12.00. The average target is $13.79.<\/p>\n * BMO\u2019s Fadi Chamoun raised his Air Canada (AC-T<\/a>) target to $30 from $26 with an \u201coutperform\u201d rating. The average is $26.83.<\/p>\n \u201cDemand trends have generally continued to be robust and have helped weather a period of extreme fuel price volatility. We are raising our estimates for FY26 to $3.4-billion EBITDA from $3.1–billion and expect Q2\/26 EBITDA to come in near the top end of the company\u2019s guidance range of $575-725-million (BMO $710-million). Provided that fuel price volatility continues to moderate, AC could re-instate FY26 guidance and perhaps provide an update on the CEO transition concurrent with the release of Q2\/26 results,\u201d he said.<\/p>\n * In a quarterly preview for U.S. medical technology companies, Citi\u2019s Joanne Wuensch raised her Bausch + Lomb Corp. (BLCO-N<\/a>, BLCO-T<\/a>) target to US$21 from US$19 with a \u201cbuy\u201d rating. The average is US$18.71.<\/p>\n \u201cNow one year past the enVista IOL recall, management continues to play offense, balancing several global new product launches,\u201d she said. \u201cQuarterly revenue deliveries have been largely consistent, with some hiccups here and there, and we are anticipating another top-line and bottom-line beat in the 2Q26. Underlying the consistent Vision Care and Consumer results have been strong consumer trends and a steady cadence of product launches across the franchises, supported by a market growing reliably mid-single-digits. We expect this strength to persist in 2Q26 as management continues to roll out its daily SiHy portfolio worldwide and recently launched products like PreserVision AREDS3 and Blink Triple Care Preservative Free (PF) gain traction.\u201d<\/p>\n On the broader sector, she added: \u201cAs we prepare for 2Q26 we find investors looking forward, not just to the 2Q or 2H but to 2027+, as we move from diagnosing the patient to healing it. Instead of evaluating what has gone wrong with MedTech the focus has shifted to what could go right, particularly at these valuations. Yes, we expect the 2Q26 earnings calls to focus on the usual suspects: patient volumes, hospital capex, macro-economic challenges, as well as idiosyncratic company-specific headwinds, and while we don\u2019t think 2Q26 will assuage these concerns, it could create a holding pattern from which to build. For the quarter, given the skittish trading environment, we prefer higher-quality stocks that may be positioned for a catch-up trade, thus our Top Picks are ABT, DXCM, and SYK, removing EW and ISRG. We are also opening a Positive Catalyst Watch on GEHC and ISRG and a Negative Catalyst Watch on HAE.\u201d<\/p>\n * In a report titled Too Early to Walk Away, Wells Fargo\u2019s Christian Wetherbee raised his targets for Canadian National Railway Co. (CNI-N<\/a>, CNR-T<\/a>) to US$135 from US$110 and Canadian Pacific Kansas City Ltd. (CP-N<\/a>, CP-T<\/a>) to US$100 from US$90 with \u201coverweight\u201d ratings for both. The averages are US$118.18 and US$95.08, respectively.<\/p>\n * ATB Cormark\u2019s Zach Matheson initiated coverage of Vancouver-based Roxmore Resources Inc. (RM-T<\/a>) with an \u201coutperform\u201d rating and $14.50 target.<\/p>\n \u201cRoxmore Resources is Nevada\u2019s newest developer focused on advancing the 100-per-cent owned Converse Project, one of the largest undeveloped gold projects in Nevada not currently owned by a senior producer. After recently delivering a strong PEA in 2026, we see now as an opportune time to look further into RM as it currently sits as one of our most undervalued gold developers. The company remains focused on advancements with numerous key catalysts incoming over the next 12 months, and a PFS pegged for 2027,\u201d said Mr. Matheson.<\/p>\n