Inside the Market’s roundup of some of today’s key analyst actions
After an examination of its U.S. plans, Desjardins Securities analyst Jerome Dubreuil has changed his view on BCE inc.‘s (BCE-T) $5-billion acquisition of internet provider Ziply Fiber, leading him to upgrade his advice for its shares to a “buy” from “hold” previously.
“We now better appreciate the merits of Ziply,” he said. “We believe Ziply would have generated greater returns in the hands of a U.S. wireless operator for the same price. Tho, that does not mean the deal is de facto bad for BCE. rather, we believe the deal solves BCE’s challenge to (1) deliver sustainable EBITDA growth from core competencies; (2) ensure the acquired business had sufficient scale to move the needle; (3) avoid putting its balance sheet at risk; and (4) keep investment requirements small enough to support a deleveraging plan that appeared credible to investors.”
“Sentiment shift as a catalyst. The market has thus far been skeptical of BCE’s U.S. plan,partly due to the deal’s complexity and high price tag.We anticipate that the closing of the deal will enable management to share more about Ziply, which we expect should help investors better appreciate the deal’s merits. A risk to our call is that BCE may reduce its 2025 FCF guidance when it reports 2Q earnings on August 7 as the initial fibre build outside the InfraCo footprint would require meaningful investment.”
Mr. Dubreuil estimates the Ziply deal will drive a 12-per-cent internal rate of return for BCE over the duration of the endeavour. Though the return is lower than management’s 20-per-cent objective, he thinks “the stock’s strong negative reaction to the Ziply announcement was in large part unwarranted.”
“Competing in FTTH deployment wiht well-capitalized, integrated players means that BCE’s success in the U.S. will have to rely on robust execution and discipline,” he said. “We would rather see BCE being inflexible on its FTTH deployment hurdle ROIC than on its homes-passed objective. The improving Canadian wireless landscape and BCE’s lower valuation relative to its peers vs the historical average also support a long thesis.”
Mr. Dubreuil raised his target for BCE shares by $1 to $40. The average target on the Street is $34.10, according to LSEG data.
“Stabilization in the Canadian telecom surroundings and an expected betterment in sentiment toward the Ziply deal led us to recommend buying BCE shares,” he concluded.
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Seeing further earnings upside after better-than-anticipated second-quarter results, Desjardins Securities analyst Brent Stadler says he continues to like the fortis Inc. (FTS-T) story, believing “its diversification provides exposure to a number of exciting energy themes, including transmission growth, load growth (including data centres) and the broader energy transition.”
“It has a number of near-term catalysts and after its 12th straight quarterly earnings beat, coupled with the TEP [Tucson electric Power] rate case, we believe FTS remains well-positioned for upward estimate revisions.”
After raisGildan Activewear and MDA Space Inc. Receive Positive Analyst Ratings
gildan Activewear:
Desjardins Securities analyst Martin Landry raised his target for Gildan Activewear Inc. (GIL-T) to US$61 from US$56,citing the company’s strong fundamentals and potential for upside. He highlighted Gildan’s key growth drivers as: “(i) printwear momentum; (ii) differentiated product innovation (Soft Cotton, Plasma Print); and (iii) the expansion of Comfort Colors and American apparel with a long runway for growth in Fashion Basics.”
Landry noted Gildan’s vertically integrated, low-cost manufacturing model as a competitive advantage, particularly in a fluid U.S. trade environment and with distributor consolidation in North America. The development of a strategic ringspun hub in Bangladesh, expected to deliver a 25-per-cent cost reduction relative to Central America, will further reinforce its cost leadership. He also pointed to $600-million in excess manufacturing capacity,which could lead to 15-per-cent EPS accretion.
Gildan is currently trading at a forward 12-month P/E of 13.6 times, below its long-term and pre-pandemic averages of 15.5 times and 16.5 times, respectively.
MDA space Inc.:
BMO Nesbitt Burns analyst Thanos Moschopoulos “significantly” raised his financial forecast for MDA Space Inc. (MDA-T) following the announcement of its $1.8-billion contract with EchoStar Corp. to build more than 100 5G satellites. He believes this provides “visibility for sustained growth.”
Moschopoulos anticipates further upside, suggesting EchoStar is likely to exercise its options to double the initial contract size. He also believes the stock’s valuation doesn’t fully reflect MDA’s strong competitive position in LEO, demonstrated by the win, or the potential for its anchor LEO clients to expand their constellations.
The contract reinforces MDA’s competitive position in the low Earth orbit (LEO) satellite market, as EchoStar is the third operator to choose MDA’s Aurora digital payload LEO satellite.The company has an active pipeline of additional constellation opportunities and benefits from economies of scale and industry credibility.”Our forecast of positive food sssg reflects continued solid performance in discount as well as sequentially higher inflation,” said Mr. Shreedhar. “We expect basket to be higher and traffic to be stable. StatsCan data (until June 2025) suggests food store inflation was 3.0 per cent vs. 2.1 per cebt last quarter. Our projection of continued solid growth in pharmacy reflects elevated influenza trends, and organic growth, among othre factors. Health and Personal Care retail sales (StatsCan data until May 2025) in Quebec accelerated to 6.7 per cent year-over-year from 5.5 per cent in Q2/F25. We expect Rx to continue to benefit from higher Rx count, specialty medications and professional services, among other factors.”Our review of peer commentary suggests: (i) An acceleration in the Buy Canadian sentiment, (ii) A continued theme of consumers searching for value (elevated promo penetration, higher sales in discount vs. conventional, higher private label, among others) and (iii) Cautious commentary from retailers regarding inflationary pressure (tariffs, F/X, commodity input costs, etc.).”
Maintaining his “sector perform” recommendation for Metro shares, Mr. Shreedhar raised his target to $111 from $107 to reflect a change in his valuation period. The average target is currently $105.90.
“We believe MRU is a solid company which has delivered solid long-term returns over various economic cycles. However, our coverage presents investments which offer a better comparative investment proposition,” he concluded.
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While reaffirming his bullish view on CAE Inc. (CAE-T), National Bank Financial analyst Cameron Doerksen acknowledged the return on capital employed by its Civil segment has recently “underwhelmed.”
“Our positive view on CAE shares is based on strong end market demand in both the Civil and Defense segments that we expect will drive a multi-year period of revenue and earnings growth,” he said. “In addition, the company’s Defense segment margins inflected positively in F2025, and we expect will continue to trend higher in the coming years supported by higher global defence spending, including an expected surge in activity in Canada.
“However, one investor critique of CAE is that given the favourable end market dynamics and its market positioning as the largest provider of pilot training globally, returns on capital and free cash flow should be higher than what the company has generated in recent years.”
In a report released Tuesday, he examined the underperformance of its Civil training network, noting it generated pre-tax roces in the 12-15-per-cent range prior to the pandemic but has since failed to reach that level.
“Despite end markets having fully recovered and the mix of simulators within the training network more favourable from a margin perspective (more business jet sims), in the last fiscal year, the ROCE was 10.8 per cent,” said Mr. Doerksen. “The primary explanation is that capital deployed in Civil has increased at a much faster pace than underlying profits. Indeed, from the end of F2018 to F2025, total capital within the Civil segment increased 181 per cent, while underlying segment EBIT only increased 79 per cent over that same period.”
Mr. Doerksen suggested several ways the Montreal-based compaTFI International Inc. (TFII-T) saw its stock target maintained at US$108 with a “buy” rating by Scotia Capital’s Konark Gupta, despite lowered earnings expectations through fiscal 2027 due to “sluggish” macroeconomic conditions.The average target is US$113.29. Gupta noted improved service with missed pickups decreasing from 4 per cent to 1 per cent,aiming for 0 per cent,and confidence returning from U.S. customers due to the OBBBA perhaps boosting industrials and housing. TFI plans to continue share repurchases, finding no better investment opportunities.
Other Analyst Actions:
Aecon Group inc. (ARE-T): Desjardins Securities lowered the target to $22 from $24 (“buy” rating). TD Cowen raised it to $23 from $22 (“buy”), and ATB Capital Markets to $28 from $30 (“outperform”). Average: $22.73. Analysts noted a backlog increase but cautioned margin expansion may be limited. Ag Growth International Inc. (AFN-T): Raymond James hiked the target to $52 from $47 (“outperform”), and TD Cowen to $57 from $55 (“buy”). Average: $52.38. The increase was based on strong quarterly results,commercial segment momentum,a large order book,and signs of farm segment recovery.
* AltaGas Ltd. (ALA-T): National Bank raised the target to $45 from $44 (“outperform”). Scotia increased it to $46 from $45 (“sector outperform”), ATB Capital Markets to $43 from $42 (“outperform”), and RBC to $44 from $43 (“outperform”). Average: $42.80.This followed strong second-quarter results.
Analyst Updates: Key Target Revisions for Topicus, NFI Group, and TerraVest Industries
Table of Contents
Recent analyst activity signals shifting perspectives on several Canadian-listed companies. Here’s a breakdown of notable target price adjustments and the reasoning behind them, offering insights for investors.
Topicus: Growth Momentum Fuels Increased optimism
Despite a slightly underwhelming second quarter performance relative to initial expectations, topicus is attracting increased attention from analysts. David Kwan of ‘s firm has raised his price target for the company to $209, up from $198, while maintaining a “buy” rating. This new target exceeds the current analyst consensus of $202.
The impetus for this upgrade stems from Topicus’s extraordinary revenue growth, reaching multi-year highs driven by both organic expansion and strategic acquisitions. According to recent data, the European business software market, where Topicus operates, is projected to grow at a compound annual growth rate (CAGR) of 8.5% through 2028, indicating a favorable market environment. Furthermore, the anticipated full-quarter contribution from the Cipal acquisition, coupled with the nearing completion of Topicus’s second investment in asseco, is expected to accelerate growth further. Analysts believe Topicus’s ability to consistently deploy capital at high rates of return positions it for continued success.
Stifel’s Daryl Young has revised his target for NFI Group Inc.(NFI-T) upwards, increasing it to $23 from $22, and reiterating a “buy” rating. The current average target price stands at $23.67.
the adjustment follows a challenging second quarter for NFI, characterized by one-time charges related to ADL and balance sheet restructuring, resulting in negative free cash flow. Though, Young expresses optimism that management has largely addressed these issues. A key positive indicator is the restoration of the supply chain to pre-pandemic levels, alongside improvements in seat supply – a critical component in bus and coach manufacturing.
While acknowledging potential hurdles during the production ramp-up phase – mirroring the challenges faced by automotive manufacturers increasing output after supply chain disruptions – Young anticipates a return to full production capacity by 2026. NFI’s substantial liquidity of $327 million provides a buffer against potential headwinds, such as tariffs, allowing the company to navigate uncertainties effectively. The analyst emphasizes that the onus is now on NFI to demonstrate successful execution.
TerraVest Industries: Long-Term Potential Outweighs Short-Term Adjustments
National bank’s Zachary Evershed has modestly lowered his target for TerraVest Industries Inc. (TVK-T) by $5, setting it at $200, while maintaining an “outperform” rating. This adjustment follows a revision of projections for the company’s Compressed Gas business. The average analyst target remains at $188.
Despite this slight downward revision, Evershed remains bullish on TerraVest, citing its extensive M&A opportunities, proven integration capabilities, and ability to generate organic growth in traditionally stagnant industries. TerraVest’s success can be likened to Berkshire Hathaway’s strategy of acquiring and optimizing businesses across diverse sectors. The analyst highlights the company’s strong track record and anticipates continued value creation through strategic acquisitions and operational improvements.
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Analyst Upgrades & Downgrades: Tuesday’s Market Movers
Published: August 5, 2025
Understanding Analyst Actions: The Pulse of Market Sentiment
In the dynamic world of stock markets, investor sentiment and future outlook play a pivotal role in shaping stock prices. One of the key indicators that manny investors closely follow are analyst upgrades and downgrades. These actions, taken by financial analysts, represent informed opinions on a company’s future performance, offering valuable insights into potential investment opportunities or risks. A financial analyst is a professional equipped with the expertise too scrutinize, interpret, and translate data into actionable insights, guiding decision-making processes across various industries [[2]]. Essentially, an analyst is a person who analyzes or who is skilled in analysis [[3]]. The field of analysis itself is vast, with publications like *The Royal Society of Chemistry Analyst* showcasing high-quality research offering new insights and innovative measurement solutions to core challenges in analytical and bioanalytical science as 1876 [[1]]. While the Royal Society of Chemistry focuses on scientific analysis, the principles of deep scrutiny and insightful interpretation are shared across disciplines.
on any given trading day, especially Tuesdays, a flurry of analyst actions can significantly influence market movements. Understanding what these upgrades and downgrades signify is crucial for any investor looking to