Analysts Adjust Targets and Ratings for Canadian Retailer, Aviation, and Financial Firms after Q3 Results
Analysts raised price targets for Canadian Tire, CAE, and Cargojet following earnings beats, while downgrades were issued for Capstone Copper and several other companies.
TD Cowen analyst Brian Morrison said Canadian Tire Corp.'s third-quarter earnings of $4.27 per share beat both his own forecast and the Street's expectations, reflecting strong same-store sales growth and higher revenue from Canadian Tire Financial Services. He highlighted a 3.2% retail same-store sales increase and noted that gross margin and SG&A efficiency were improving under the company's "True North" strategy. Morrison kept a "hold" rating but lifted his price target to $230, above the Street average of $211.75.
Other analysts also upgraded Canadian Tire. National Bank’s Vishal Shreedar raised his target to $235, citing resilient consumer spending and higher loyalty sales. Stifel’s Martin Landry and Desjardins Securities’ Chris Li each increased their targets to $235 and $235 respectively, pointing to market-share gains, cost control and a stronger e-commerce platform, while warning of a tougher fourth-quarter outlook.
RBC Dominion Securities analyst James McGarragle said CAE Inc. posted adjusted operating income of $179 million and earnings per share of 33 cents, both above estimates. He attributed the beat to solid performance in the Defense segment and tax-credit benefits, and raised his target to $53 from $47, maintaining an "outperform" rating.
Cargojet Inc. reported revenue of $286.5 million and adjusted EPS of $1.21, surpassing forecasts. TD Cowen’s Tim James kept a "buy" rating, lifted his target to $134 and cited the company's "one fleet, one network" strategy, high contract-pricing share and growth in ACMI and charter services.
In contrast, National Bank’s Shane Nagle downgraded Capstone Copper to "sector perform" and cut his target to $14.50 after the miner lowered its 2026 production guidance and cited operational delays and a trucker strike in Chile.
TD Cowen analyst Mario Mendonca projected EQB Inc.'s adjusted EPS at $2.36 for the quarter, driven by the inclusion of President’s Choice Financial results, and reduced his target to $150 while keeping a "buy" rating.
Other notable actions included upgrades for Ag Growth International, CES Energy Solutions and Apotex, and downgrades for Timbercreek Financial, VerticalScope and several other firms. Analysts cited factors such as earnings beats, margin expansion, strategic initiatives, and macro-economic pressures in forming their revised views.