Inside the Market\u2019s roundup of some of today\u2019s key analyst actions<\/p>\n
\u201cExpressing faith in North American oil production growth,\u201d National Bank Financial analyst Patrick Kenny upgraded Enbridge Inc. (ENB-T<\/a>) to \u201coutperform\u201d from \u201csector perform\u201d after coming off research restriction following its $3.0-billion equity financing, which will partially fund the concurrent US$2.55-billion acquisition of the crude oil business<\/a> of Tallgrass Energy LP and US$0.6-billion tuck-in<\/a> of Salt Creek Midstream\u2019s crude oil gathering business.<\/p>\n \u201cThe acquisitions further strengthen ENB\u2019s industry-leading North American crude oil super-system, adding highly contracted assets including the 460 mbpd [thousand barrels per day] Pony Express Pipeline (PXP), the 240 mbpd Powder River Gateway, connecting the Bakken, Powder River and Denver-Julesburg basins into Cushing, while extending its Permian wellhead-to-water offering. <\/p>\n \u201cLonger term, we also highlight the optionality for ENB to twin its 310 mbpd Express WCSB egress pipeline system and integrate with an expanded PXP into Cushing and the Gulf Coast via Seaway. Meanwhile, the recent Salt Creek tuck-in adds 420 mbpd of acreage-dedicated Permian gathering capacity with connectivity into ENB\u2019s Gray Oak pipeline and 1.6 mmbpd Ingleside terminal, which currently has 500 mbpd of whitespace.\u201d<\/p>\n In a client note released before the bell, Mr. Kenny said Enbridge\u2019s liquids franchise \u201cremains well positioned to benefit from durable North American crude supply growth, with the company\u2019s transcontinental super-systems currently delivering ~6 mmbpd of crude oil and liquids across the U.S. and Canada.\u201d <\/p>\n \u201cThrough 2035, the company expects gross production to increase by more than 1.0 mmbpd [millions of barrels per day] in the WCSB, 0.9 mmbpd in the Permian Basin and 0.2 mmbpd across the Bakken and Rockies,\u201d he added. <\/p>\n \u201cMeanwhile, the Bakken and Rockies stand to benefit from their long-life supply base combined with growing strategic importance in the Denver-Julesburg Basin (DJB) and Powder River Basin (PRB) equipped with advantaged topography and a supportive regulatory backdrop, while Permian growth is supported by improving drilling technologies and ENB\u2019s vertically integrated connection to its Enbridge Ingleside Energy Center (EIEC) for international exports. Meanwhile, ENB\u2019s Mainline continues to provide a critical conduit for U.S.-bound Western Canadian energy, with the potential to facilitate growth beyond the 1.0 mmbpd base case following resolution of the trilateral MOU and long-term commercial visibility supported by 30 years of negotiated tolling agreements.\u201d<\/p>\n Seeing \u201cmodest\u201d accretion from the deals to his near-term estimates for the Calgary-based company \u201cwhile rightsizing 2028 leverage,\u201d Mr. Kenny raised his target for Enbridge shares by $1 to $82. The average target on the Street is $79.26.<\/p>\n \u201cWe resume coverage … noting further valuation upside related to more than 1.4 mmbpd of WCSB production growth by the first half of next decade, including sanctioning new regional oil sands pipeline expansions, MLO2, and twinning the Express Pipeline,\u201d he concluded. <\/p>\n \u201cCombined with the stock being down more than 15 per cent since mid-July, now trading less than 12.5 times 2027 estimated EV\/EBITDA (long-term average: 13.0 times), and 15 times below our SOTP [sum-of-the-parts] valuation of $77\/sh, we resume coverage with an Outperform rating (was SP prior to Restriction) with a 12-month total return opportunity of 28 per cent.\u201d<\/p>\n Elsewhere, others making rating revisions include: <\/p>\n * TD Cowen\u2019s Aaron MacNeil to \u201cbuy\u201d from \u201chold\u201d with an $81 target, down from $82. <\/p>\n \u201cWe are resuming coverage and upgrading to BUY, with a view that negative investor sentiment toward Enbridge is overly focused on long-term Mainline concerns that are unlikely to materialize. Our review of historical settlements, top-down\/bottom-up fundamental analysis and scenario testing suggest the Mainline is more resilient than sentiment implies,\u201d said Mr. MacNeil.<\/p>\n * BMO\u2019s Ben Pham to \u201coutperform\u201d from \u201cmarket perform\u201d with a $79.50 target, up from $79. <\/p>\n \u201cIn this choppy macro environment, we recommend a focus on quality and visible growth. ENB fits that bill so we are upgrading the shares to Outperform and increasing our target price to $79.50 vs. $79, now offering an attractive 20-per-cent-plus potential total return,\u201d said Mr. Pham.<\/p>\n Analysts making target changes include: <\/p>\n * Raymond James\u2019 Michael Barth to $80 from $79 with a \u201cmarket perform\u201d rating.<\/p>\n \u201cDespite two accretive acquisitions announced in the last few weeks, the combined purchase price represents just 1.5-2.0 per cent of the company\u2019s current enterprise value, so it\u2019s not particularly material to our thesis (the combined DCF\/share accretion is less than 1 per cent on our estimates),\u201d said Mr. Barth. \u201cWe do view the risk\/reward as getting more attractive at the margin since we downgraded ENB in late-July (the stock is since down 12 per cent vs. the group down just 6 per cent), although we remain concerned about risks that could materialize around the Liquids segment as competing Canadian export pipelines progress. If nothing else, the uncertainty around that range of outcomes gives us pause. As such, we reiterate our Market Perform rating.\u201d<\/p>\n * ATB Cormark\u2019s Nate Heywood to $84 from $83 with an \u201coutperform\u201d rating.<\/p>\n TD Cowen analyst Aaron MacNeil thinks the recent 16-per-cent pullback in the price shares of TC Energy Corp. (TRP-T<\/a>) has created \u201can attractive entry point into one of North America\u2019s highest-quality naturalgas midstream companies.\u201d<\/p>\n That led him to raise his rating for its shares to \u201cbuy\u201d from \u201chold\u201d previously, believing the decline \u201cappears tied to three emerging investor concerns that have increased uncertainty around growth and valuation.\u201d<\/p>\n \u201cOpportunity conversion remains the key catalyst, and we view Q3\/26 results as a potential inflection point, given the possibility of project sanctions, NGTL updates, and other backlog additions,\u201d he said.<\/p>\n Mr. MacNeil warned the opposition to data centres represents a \u201cnotable risk to opportunity conversion,\u201d however he thinks \u201cthe broader opportunity profile remains robust.<\/p>\n \u201dAlthough permitting delays and moratoriums may slow project conversion, we believe the breadth of TC\u2019s opportunity set, utility customer exposure, and continued growth in power demand support long-term opportunity realization,” he said\/<\/p>\n \u201cNGTL Growth Remains a Significant Opportunity, but the Economics of Future Expansion Remain the Primary Point of Debate: Although recent reporting has focused on tension between TC, shippers, and policymakers, we believe the key issue is whether a revised framework can provide returns sufficient to attract capital toward roughly 2 Bcf\/d of additional growth opportunities beyond the currently approved Multi-Year Growth Plan (MYGP). We remain optimistic that this outcome can be achieved, potentially as early as Q3\/26 results.\u201d <\/p>\n He also thinks higher interest rates could be a near-term valuation obstacle, but he sees \u201cmuch of this risk as manageable.\u201d<\/p>\n \u201cA large portion of TC\u2019s regulated assets ultimately recover financing costs through tolling frameworks, limiting the long-term impact on underlying cash-flow generation,\u201d said Mr. MacNeil.<\/p>\n \u201cOutsized Recent Weakness Suggest a Portion of These Concerns are Likely Priced-in: Importantly, we believe the recent share-price correction already reflects a meaningful portion of these risks, while TC\u2019s premium-quality asset base, visible growth outlook, and industryleading position remain intact. With the shares now trading closer to historical relative valuation levels following the recent pullback, we believe investors are being adequately compensated for the uncertainty surrounding project conversion, NGTL negotiations, and interest rates, supporting our upgrade to BUY.\u201d<\/p>\n He kept a $102 target for TC Energy shares. The average target is $103.03.<\/p>\n National Bank Financial analyst Doug Taylor sees MDA Space Ltd. (MDA-T<\/a>) \u201cwell positioned to benefit from the ongoing structural increase in space investment,\u201d emphasizing its \u201c55+ years of heritage across satellite systems, robotics and Earth observation.\u201d<\/p>\n In a client note titled Entering the Next Stage of the Space Growth Odyssey, he initiated coverage of with an \u201coutperform\u201d rating, seeing the Brampton, Ont.-based set to enter 2027 \u201cwith a more diversified revenue and growth profile, a robust balance sheet, and a catalyst-rich pipeline of opportunities\u201d following a series of recent transactions.<\/p>\n In justifying his bullish stance and seeing MDA as a \u201ccompelling opportunity\u201d for investors, Mr. Taylor emphasized a trio of factors:<\/p>\n * \u201cMDA pairs deep heritage with increasingly scalable capabilities in a structurally growing space market.\u201d<\/p>\n Analyst: \u201cThe global space economy is expected to grow at a 9-per-cent CAGR [compound annual growth rate] through 2035 to US$1.8 trillion, driven by proliferated LEO communications, rising defence-space spending and renewed exploration investment. Against this backdrop, MDA combines established capabilities across communications payloads, space robotics and SAR with expanded manufacturing capacity capable of accommodating significant scale. <\/p>\n * Its backlog \u201cprovides visibility, while pipeline conversion creates estimate upside.\u201d <\/p>\n Analyst: \u201cMDA enters H2\u201926 with $4.4-billion of backlog pro forma the Lightspeed expansion, supporting the revenue outlook through 2027. Its $40-billion five-year organic pipeline includes $10-billion of downselected customer programs\/follow-on opportunities, with potential catalysts including ESCPP, new or expanded AURORA constellations and SpaceRAN. Pipeline conversion remains the most visible catalyst for upside to our 2028 estimates. <\/p>\n * Recent M&A activity has expanded its exposure to the U.S. defence industry and a recurring-revenue base. <\/p>\n Analyst: \u201cMDA has announced the acquisitions of BCT and CLS for a combined $2.0-billion (including fees). BCT adds an established U.S. manufacturing footprint, access to classified government programs and $5-billion of incremental pipeline, while CLS adds a scaled recurring EO analytics business and global distribution channel to complement its CHORUS launch. We estimate defense exposure rises from 15\u201320 per cent in 2025 to over 20-per-cent pro forma, while recurring revenue should represent over one third of the business in 2027.\u201d<\/p>\n Mr. Taylor is now forecasting 15-per-cent organic growth in 2026 followed by 3 per cent and 8 per cent in 2027 and 2028, respectively, which he calls \u201ca conservative baseline while we await further pipeline conversion.\u201d<\/p>\n \u201cThe pending acquisitions supplement this growth, driving total revenue to $2.7-billion in 2027 (up 46 per cent) and $3.0 billion in 2028 (up 8 per cent),\u201d he added. \u201cWe forecast Adj. EBITDA margins around 19-20 per cent through the period, while FCF should improve materially after 2026 as working-capital pressure normalizes and recent investments mature.\u201d<\/p>\n The analyst set a target of $55 per share. The current average on the Street is $70.54.<\/p>\n \u201cOur $55.00 target applies a 17.5 times NTM+1 EBITDA multiple, a premium to established aerospace and defense peers that we believe is warranted by MDA\u2019s higher growth, pure-play space exposure, growing defence\/recurring mix and scarcity value as a scaled, profitable public space company,\u201d he noted. \u201cOur target implies a 37-per-cent one-year return.\u201d<\/p>\n National Bank Financial analyst Mike Stevens thinks Calian Group Ltd.\u2019s (CGY-T<\/a>) \u201crecent operating momentum and improved execution support the earnings outlook, while its substantial balance sheet capacity and plans to accelerate capital deployment leave M&A as the clearest near-term source of additional upside.\u201d<\/p>\n In a client report released Tuesday titled Powering Defence Readiness, With Bigger Missions Still Ahead, he initiated coverage of the Ottawa-based mission-critical solutions company, which focuses on defence, space, healthcare and other critical infrastructure sectors, with an \u201coutperform\u201d rating, emphasizing its” improved momentum, a cleaner portfolio, favourable growth and low leverage.”<\/p>\n Mr. Stevens said Calian now \u201cspans Canada\u2019s defence-readiness foundations\u201d while its \u201cfour operating engines balance visibility and growth torque.\u201d<\/p>\n \u201cMore than half of Calian\u2019s revenue is generated in Canada, where recent funding packages supporting a materially stronger defence spending cycle add $81.8-billion of incremental investment over five years to an annual defence base above $50-billion,\u201d he explained. \u201cHowever, larger budgets create value only when translated into military capability, which we frame across five readiness foundations drawn from Canada\u2019s defence policy: people, training, equipment, infrastructure and sustainment. Calian\u2019s FY26 contract activity supports that alignment with $1 billion of signings spanning all five foundations, while book-to-bill is tracking above 1.0 times and its largely defence-related backlog stands at $1.6 billion, reinforcing its right-to-win.\u201d <\/p>\n \u201cWe group roughly 85 per cent of pro forma revenue into four operating engines: Healthcare, Training, Space and Nuclear. Healthcare and Training provide capacity-led scale, duration and incumbency, while Space and Nuclear offer exposure to technology adoption, resilient connectivity and infrastructure modernization. The mix balances large service platforms, often underpinned by multi-year defence contracts, with higher growth and higher margins but more variable technology products and projects. Together, the four engines should support a more resilient and balanced growth profile than any single one could provide on its own.\u201d<\/p>\n The analyst also emphasizing \u201cbetter execution can unlock more value\u201d from Calian\u2019s existing platform.<\/p>\n \u201cThrough FY26 to date, revenue increased 17 per cent year-over-year with 11-per-cent organic growth, while Adj. EBITDA rose 41 per cent,\u201d he said. \u201cThe planned Computex divestiture should sharpen the portfolio, with our Defence & Space forecast at nearly 75 per cent of FY27 estimated revenue. Our estimates assume continued margin expansion but no unannounced M&A, leaving capital deployment as the clearest source of near-term upside. We highlight how a $75-million FY27 M&A scenario using conservative assumptions could add $12.5-million to FY28E Adj. EBITDA; applying our 11.0-times target multiple to the higher pro forma earnings base implies $108 per share and a 38-per-cent total return.\u201d<\/p>\n Also believing \u201cbroader program leadership could raise both earnings and valuation,\u201d Mr. Stevens set a target of $100 per share, representing a estimated total return of 27.2 per cent including forecast dividends. The average is $104.60.<\/p>\n \u201cWe increasingly view FY27 as the execution year and FY28 as the realization year,\u201d he added. \u201cWe believe the existing platform does not need to change dramatically, and the market does not need to award Calian a higher valuation multiple for the Company to create meaningful additional value. The formal portfolio review is complete, the agreed Computex divestiture is reflected in our forecasts and continued operating improvement is partly modelled. That leaves capital deployment as the most meaningful near-term unmodelled lever, supported by a more focused portfolio, improving execution, ample balance-sheet capacity and Management\u2019s stated intent to accelerate M&A.\u201d<\/p>\n RBC Dominion Securities analyst James McGarragle thinks Kraken Robotics Inc.\u2019s (PNG-X<\/a>) transformational $615-million acquisition of European peer Covelya Group Ltd. transforms it into \u201ca full-subsystem undersea technology provider, marking a step-change in scale and customer stickiness.\u201d<\/p>\n \u201cCombined with structural defence and commercial tailwinds driving strong growth, we see a compelling path to operating leverage and EBITDA margin expansion through FY28,\u201d he said. \u201cKey is that our conservative earnings forecast and target multiple point to an attractive entry point at current levels, with further upside potential as integration progress materializes.\u201d<\/p>\n On Tuesday, he initiated coverage of Mount Pearl, N.L.-based marine technology company, with an \u201coutperform\u201d rating, seeing the deal, which closed on July 2, adding \u201cmore than scale.\u201d<\/p>\n \u201cWhile Kraken previously supplied one or two components of an underwater vehicle, the combined company now provides the majority of a vehicle\u2019s subsystems, creating substantial switching costs; replacing a multi-subsystem vendor requires costly re-testing and reintegration,\u201d said Mr. McGarragle. \u201cCovelya therefore does not merely add scale at 2.5 times Kraken\u2019s standalone revenue base, but represents a structural shift in customer stickiness, while unlocking meaningful cross-selling opportunities across a combined 700+ customer base.\u201d<\/p>\n The analyst now sees Kraken sitting in a strong position to capitalize on \u201ccompelling defence and commercial tailwinds.\u201d <\/p>\n \u201cNATO and allied navies and offshore energy operators are shifting toward autonomous alternatives to crewed and legacy systems, with the unmanned underwater vehicle market expected to grow at a 25-per-cent CAGR [compound annual growth rate] to US$120-billion by 2035,\u201d said Mr. McGarragle. \u201cWe see Kraken as well positioned to capitalize, forecasting a meaningful step-up in profitability in FY26\/27 due to the Covelya acquisition, and revenue and EBITDA growth of 20 per cent and 27 per cent, respectively, in FY28 \u2014 growth rates we see as sustainable longer-term. <\/p>\n \u201cIntegration execution is the key variable to watch. We value Kraken at 12.0 times EV\/EBITDA applied to FY28E EBITDA, in line with subsea technology peers, and we see valuation upside potential as Kraken executes, given our long-term revenue growth expectations and opportunity for significant operating leverage driven by synergies post-Covelya integration. That said, demand is not the primary source of uncertainty; execution is. Integration execution risk, limited FCF generation history, and the still-maturing unmanned undersea market underpin our Speculative Risk qualifier.\u201d<\/p>\n The analyst set a target of $6 for Kraken shares, which is below the $9.58 average on the Street.<\/p>\n RBC Dominion Securities analyst Harrison Reynolds sees Skeena Resources Ltd. (SKE-T<\/a>) now \u201con the doorstep of the next major Canadian gold-silver mine.\u201d<\/p>\n \u201cSkeena is building one of the highest-grade open-pit precious metals mines globally in BC\u2019s Golden Triangle,\u201d he explained. \u201cInitial production is on track for 2Q27 with construction well advanced. We anticipate multiple expansion as SKE transitions from developer to producer, underpinned by a front-loaded production profile of 450,000 ounces per year gold equivalent in years 1\u20135 with potential for incremental asset value through an updated mine plan in early 2027.\u201d<\/p>\n \u201cScarce asset with strategic optionality backed by a team with dealmaking and mine-building expertise. Eskay Creek will be one of Canada\u2019s largest precious metals mines and one of three operating mines in the Golden Triangle alongside Newmont\u2019s Brucejack and Red Chris. The combination of scale, grade, and jurisdiction carries strategic value, in our view. Eskay Creek\u2019s significant upfront FCF profile provides the opportunity to acquire and build a multi-asset platform, leveraging a management team with a demonstrated track record. Equally, few assets of this quality in comparable jurisdictions sit outside major producer portfolios, making Eskay Creek a natural acquisition target.\u201d<\/p>\n Mr. Reynolds resumed coverage of the Vancouver-based company with an \u201coutperform\u201d rating on Tuesday, noting an updated mine plan by early 2027 \u201crepresents a material near-term catalyst.\u201d<\/p>\n \u201cThe 2023 DFS production profile steps down materially after year 5 (450 koz to 225koz AuEq\/yr),\u201d he said. \u201cThree levers aim to reshape the profile toward sustained elevated output: (i) adding Snip (0.9Moz at 9 g\/t), (ii) steepening pit walls to unlock mineralization beyond current pit shell, and (iii) Albino Lake waste facility (4 kilometres from mill, historic mineralized material at 6 g\/t AuEq). Together, we see potential to support 350\u2013400koz\/yr over 10+ years, outlining a more durable production profile and sustained FCF generation.\u201d<\/p>\n Seeing an \u201cattractive valuation ahead of developer-to-producer graduation,\u201d Mr. Reynolds set a target of $64 for Skeena shares. The average target on the Street is $52.40.<\/p>\n \u201cSKE trades at 0.8 times P\/NAV and 4.1 times 2028E EBITDA (at spot), a premium to developers (0.4 times NAV) but a meaningful discount to mid-cap producers (1.1 times NAV, 6.0 times EV\/EBITDA),\u201d he said. \u201cWe estimate FCF of $1.2-billion\/yr in 2028\u20132030E (22-per-cent yield) at $4,400\/oz spot gold. With construction concluding and first production in sight, we expect multiple expansion as the market re-prices SKE as a producer over the next 6\u201312 months.\u201d<\/p>\n When MTY Food Group Inc. (MTY-T<\/a>) reports its third-quarter financial results next month, National Bank Financial analyst Vishal Shreedhar expects to see \u201ctepid\u201d same-store sales growth with its U.S. operations continuing to struggle.<\/p>\n \u201cWe model tepid overall trends year-over-year, reflecting ongoing soft industry demand in the U.S., partly offset by relatively more resilience in Canada, organic growth initiatives across the business (broad-based digital\/technology enhancements, new marketing approaches, etc.), and the addition of new higher quality stores to the network,\u201d he said. Notwithstanding, we expect MTY\u2019s share price to be largely governed by investor perception regarding the ongoing strategic review.<\/p>\n \u201cOutside the strategic review, investors will focus on (i) traction with sssg (will Canada sssg remain positive beyond June, and indications on when sssg will turn consistently positive, particularly in the U.S.), (ii) organic store network stability (cadence of corporate store closures and its effect on EBITDA), and (iii) outlook commentary and the consumer backdrop given ongoing macroeconomic concerns.\u201d<\/p>\n In July, the Montreal-based company operating restaurants under 80 brands, including Thai Express, Manchu Wok and B\u00e2ton Rouge, said it is closing 68 underperforming stores<\/a> over the next nine months, citing a lack of sales. That move comes after it announced the launch of a strategic review<\/a> late last year to explore strategic options that could lead to the sale of the business.<\/p>\n \u201cThe outcome of the strategic review remains the key near-term driver for the stock,\u201d said Mr. Shreehdar. \u201cWe continue to believe an acquisition price of $44-$60 is reasonable (7.0-8.5 times EBITDA). <\/p>\n \u201cPublic filings indicate MTY did not repurchase any shares during Q3\/F26E. We expect excess cash to be allocated towards debt repayment. NBCCM models net debt to EBITDA of 2.7 times in Q3\/F26E versus 2.8x in Q2\/F26.\u201d<\/p>\n For its third quarter, Mr. Shreedhar is now projecting system sales of $1.429-billion, down from $1.455-billion during the same period a year ago. He sees EBITDA of $68-million, exceeding the consensus expectation by $1-million but down from $74-million in fiscal 2025.<\/p>\n \u201cNBCCM models U.S. sssg of negative 2.0 per cent and Canada sssg of 0.5 per cent,\u201d he added. \u201cOur positive Canada comp reflects improved performance in June with most concepts showing positive sssg, partly offset by a challenging consumer environment. Our expectation for ongoing U.S. softness reflects similar trends to Q2, continued challenges at Papa Murphy\u2019s (16 per cent of F2025 sales; pizza remains highly competitive), as well as tepid trends in third-party data.<\/p>\n \u201cOur review of Bloomberg Second Measure data (ALTD) suggests U.S. sales growth at MTY remained pressured but sequentially improved. In Q3\/F26E, MTY U.S. sales were down 1.3 per cent year-over-year vs. down 1.6 per cent in Q2\/F26. Our review of peer commentary suggests (i) subdued consumer sentiment, while spending remains resilient; pizza category continues to be competitive, (ii) a divergence in traffic trends between banners, and (iii) higher input costs (especially protein and labour).\u201d<\/p>\n Reaffirming his \u201coutperform\u201d rating for MTY shares, Mr. Shreedhar cut his target to $40 from $43 to reflect \u201ca lower multiple for the core business due to tepid operational growth.\u201d The average target is $41.67.<\/p>\n Believing \u201cthe next lumber cycle clashes with structurally reduced supply,\u201d Raymond James analyst Daryl Swetlishoff upgraded a trio of building materials companies on Tuesday, seeing \u201ccompelling upside\u201d in each.<\/p>\n \u201cAfter 4 years of depressed U.S. housing and repair & reno activity, we submit that the supply side has finally done the heavy lifting to improve balance in North American lumber markets,\u201d he explained in a report. \u201cCanadian shipments have fallen to record lows, capacity has (permanently) exited the system and European lumber imports have also fallen sharply. Despite cyclical and seasonal demand headwinds, 2Q26 results approached what we consider mid-cycle profitability ($100 EBITDA\/mfbm) with our refreshed 3Q26 estimates not too far behind. We highlight that mid-cycle EBITDA implies FCF yields of 25 per cent and 15 per cent for Interfor and Canfor (respectively) and we are upgrading both to Strong Buy in this note (West Fraser goes to Outperform).<\/p>\n \u201dYear-to-date Canadian lumber shipments to the US are down 30 per cent from peak COVID (2021) levels while European shipments are running 45 per cent below 2022 levels. Notably, the supply reset has extended well beyond sawmill closures. Since 2023, 15 per cent of North American woodpulp capacity has closed permanently removing critical outlets for sawmill residuals. Coupled with structurally constrained Canadian harvesting, persistent labour shortages and soaring greenfield build costs, we expect a materially reduced supply response vs. prior cycles. As such, while timing of a durable housing recovery remains uncertain, we note the next cycle will collide with a materially diminished production base \u2014 setting the stage for structurally higher lumber prices and significant earnings torque for preferred names.”<\/p>\n His rating revisions are: <\/p>\n Canfor Corp. (CFP-T<\/a>) to \u201cstrong buy\u201d from \u201coutperform\u201d with a $21 target, up from $17. The average is $17.14.Interfor Corp. (IFP-T<\/a>) to \u201cstrong buy\u201d from \u201coutperform\u201d with a $21 target, up from $17. Average: $17.17.West Fraser Timber Co. Ltd. (WFG-N<\/a>, WFG-T<\/a>) to \u201coutperform\u201d from \u201cmarket perform\u201d with a US$85 target, up from US$75. Average: US$82.53.<\/p>\n In other analyst actions:<\/p>\n * Raymond James\u2019 Steven Li upgraded Quebecor Inc. (QBR.B-T<\/a>) to \u201coutperform\u201d from \u201cmarket perform\u201d with a $75 target, rising from $72 and exceeding the $73.83 average on the Street.<\/p>\n \u201cQBR shares have pulled back 7 per cent since its earnings report (TSX: down 1 per cent over the same period). With wireless momentum continuing in the East and \u201cGo West\u201d imminent, we believe there is enough catalysts to drive shares higher to our target price. We are upgrading QBR shares to Outperform,\u201d he said.<\/p>\n \u201c\u2018Go West\u2019 comes next. Densification investments in Western Canada have been ramping for some time even if there have been some delays (e.g. Vancouver leasing for building rooftops have taken longer, etc.) but we are almost there. Based on conversations with management, we expect Freedom to be in Vancouver by Black Friday (already in Calgary & Edmonton) and that will be the first real test potentially of whether QBR can take wireless share outside Ontario at scale. We note the combined population of Vancouver+Calgary+ Edmonton is 6.6 million, which is just slightly less than the GTA\u2019s population of roughly 6.7 to 7.1 million (depends on exact region).\u201d<\/p>\n * In response to a first-quarter miss, driven by weaker-than-anticipated margins, and pointing to \u201clacklustre growth and tariff uncertainty,\u201d Canaccord Genuity\u2019s Robert Young made \u201ca shift to the sidelines\u201d on Evertz Technologies Ltd. (ET-T<\/a>), downgrading its shares to \u201chold\u201d from \u201cbuy\u201d with a $15 target, falling from $18. Others making target revisions include: RBC\u2019s Paul Treiber to $16 from $17 with a \u201csector perform\u201d rating, BMO\u2019s Thanos Moschopoulos to $17 from $18 with an \u201coutperform\u201d rating and Raymond James\u2019 Steven Li to $16.50 from $18 with an \u201coutperform\u201d rating. The average is $17.75.<\/p>\n \u201cEvertz reported a mixed FQ1\/27, with revenue in line with consensus but profitability below expectations on lower gross margins and higher operating expenses. Top-line growth remained modest at 5.5 per cent year-over-year, driven by software & services (up 14 per cent year-over-year to 50 per cent of sales) and international revenue (up 17 per cent YoY), while hardware revenue declined slightly. Backlog increased 9 per cent quarter-over-quarter to $259-million with particularly strong government\/defense order intake in August. That said, the August shipment figure of $30-million is an $11-million drop year-over-year and suggests FQ2 will be weaker than our previous view and that growth will likely turn negative. While conceding uncertainty, management expects the impact from recently increased U.S. tariffs to be manageable and reiterated the long-held 56\u201360 per cent GM target range. Cash generation deteriorated in Q1 with CFO of just $0.8-million as a $20-million raw materials build consumed working capital. We note the unchanged quarterly dividend of 20.5 cents per share (5.5 per cent yield) is temporarily uncovered by internally generated cash. Overall, we remain constructive on Evertz\u2019s backlog, defense opportunity and growing software\/services contribution, but with lackluster growth likely to persist, incremental uncertainty from supply chain and tariffs, and the shares trading above their historical valuation range, we believe the current valuation leaves less room for upside,\u201d said Mr. Young.<\/p>\n * In response to its plan to quadruple the capacity of its artificial intelligence data centre operations in Saskatchewan<\/a>, TD Cowen\u2019s Vince Valentini raised his target for shares of BCE Inc. (BCE-T<\/a>) to $40 from $37, maintaining a \u201cbuy\u201d rating. The average is $36.96.<\/p>\n \u201cAs we expected, the Canada Infrastructure Summit led to some incremental data centre news for BCE. Unfortunately, the new project in Saskatchewan is not at the point where Bell AI Fabric has committed customer contracts and power commitments (unlike prior deals that were locked in before public disclosure),\u201d said Mr. Valentini.<\/p>\n \u201cThe prospects here look very encouraging in our view over the medium term, so we have increased our target price … BCE expects to have the full incremental 900 MW of DC capacity (taking the SK total to 1.2 GW) operational well within 10 years, and the first 150 MW could be quite soon as there are two additional pods (for six total) available at the Sherwood location,\u201d he added. \u201cBCE also expects the ROE on this project to be similar to the 20-per-cent target on previously announced Sherwood phase one.\u201d<\/p>\n