Analysts adjust ratings and targets for Canadian REITs, airlines and consumer firms after mixed Q3 results
National Bank Financial upgraded Allied Properties REIT to outperform, while several analysts lowered price targets for Allied and other companies following recent earnings and guidance updates.
National Bank Financial analyst Matt Kornack upgraded Toronto-based Allied Properties Real Estate Investment Trust (AP-UN-T) to an “outperform” rating from “sector perform” after the REIT cut its cash distribution by 90 percent and announced an accelerated disposition program. Kornack said the move should aid deleveraging and improve capital allocation, adding that it was a “positive move for the REIT and should have been done sooner.”
Allied’s third-quarter funds from operations fell to 19 cents per unit, down from 46 cents a year earlier, and net operating income declined 5.9 percent. Kornack noted weaker NOI due to lower organic growth but expected improvement over the next two quarters as disposition activity accelerates.
Other analysts revised their outlooks for Allied. Desjardins Securities lowered its target price to $5 and a “hold” rating, citing the distribution cut and potential downward revisions to the 2027 outlook. Raymond James reduced its target to $5 with a “market perform” rating, warning of elevated investment-risk factors such as possible index deletion and credit-rating downgrade. TD Cowen cut its target to $4.75, calling the 20-percent share-price decline “mostly justified” after the distribution cut and ongoing uncertainty around Westbank assets.
In a separate note, Kornack initiated coverage of Mainstreet Equity Corp. (MEQ-T) with an “outperform” rating and a $215 target price, highlighting the REIT’s low-payout structure, value-add acquisition strategy and exposure to Western-Canada rental demand.
Air Canada posted Q3 revenue of $6.984 billion, up 21 percent year-over-year, and adjusted EBITDA of $936 million, beating estimates. However, National Bank analyst Cameron Doerksen lowered his target price to $33 from $37, citing weaker-than-expected 2026 EBITDA guidance driven by higher jet-fuel costs. He maintained an “outperform” rating and noted that fuel-cost recovery is now expected in 2027.
Restaurant Brands International reported earnings that met expectations, prompting Citi analyst Jon Tower to keep a “neutral” rating but reduce his price target to $78, citing limited visibility on new-restaurant growth and brand-repositioning risks.
Other notable analyst actions included upgrades for Aecon Group, AltaGas and TMX Group, and target cuts for Cogeco Communications, Eldorado Gold and Champion Iron, reflecting a mix of sector-specific developments and broader market conditions.