Analysts Adjust Ratings and Targets for Canadian Energy, Finance and Consumer Companies
Several Canadian analysts revised earnings forecasts, price targets and ratings for firms including Capital Power, EQB, Exchange Income, Gildan and others, citing recent earnings beats and macroeconomic pressures.
National Bank Financial analyst Patrick Kenny highlighted Capital Power Corp.'s strong cash-flow profile after the utility posted third-quarter adjusted EBITDA of $553 million, topping his $485 million estimate. He noted the company’s 75 percent contracted EBITDA and long-term contracts with A-rated counterparties, and pointed to contracted capacity additions through 2029. Capital Power raised its full-year guidance for adjusted funds from operations and adjusted EBITDA, while increasing its 2026 sustaining capital budget to $350-$370 million. Kenny trimmed his target price to $83, citing modest near-term estimate revisions, but kept an Outperform rating with a refreshed sum-of-parts valuation.
Raymond James analyst Stephen Boland upgraded EQB Inc. to a market-perform rating after the bank’s sale of Bennington Financial Corp., which he said should reduce credit volatility. He projected a modest earnings impact and highlighted continued uncertainty in the housing market and potential pressure from higher Bank of Canada rates.
Ventum Capital Markets analyst Rob Goff resumed coverage of Exchange Income Corp. with a buy rating, citing strong dividend growth, strategic acquisitions and exposure to defence, northern infrastructure and data-centre demand. He set a $150 target price, above the Street average of $149.
Desjardins Securities analyst Chris Li lowered his target for Gildan Activewear to $90 from $108, maintaining a buy rating, as macro-economic headwinds weigh on demand. He expects FY26 sales of $6 billion, roughly in line with consensus, and anticipates modest margin improvement in 2027.
Scotia analyst John Zamparo cut his target for Gildan to $53, citing softer demand and inflationary pressure on consumers, while maintaining a sector-outperform rating.
RBC Dominion Securities analyst Sabahat Khan kept an outperform stance on Finning International and Toromont Industries, modestly lowering earnings estimates ahead of Q3 reports but reaffirming a supportive demand outlook for infrastructure and power-related markets. She adjusted Toromont's target to $261 and Finning's to $129.
RBC analyst Ryland Conrad lowered Premium Brands Holdings' revenue forecast for 2026 and cut the target price to $110, seeing the recent share-price decline as an accumulation opportunity if the company progresses with its $1 billion-plus non-core asset monetizations.
Other actions included BMO analyst Alexander Pearce reducing Cameco's target to $150, RBC’s Sam Crittenden cutting Champion Iron's target to $4, Raymond James’ Judith Elliott lowering Ero Copper's target to $54, and TD Cowen analysts adjusting targets for Imperial Oil, Pizza Pizza Royalty and other firms.
Overall, analysts cited a mix of company-specific developments and broader macroeconomic factors such as housing market weakness, rising interest rates and commodity price trends in shaping their outlooks.