Analyst Upgrades and Downgrades: Canadian Tire, Champion Iron, Bombardier, South Bow, Hammond Power Solutions, TransAlta, TC Energy, Kneat.com, Exchange Income Corp.
Canadian Tire Corp. (CTC.A-T) has been upgraded by Stifel analyst Martin Landry, who sees the company benefiting from its scale advantage and strong customer awareness. The analyst initiated coverage with a "buy" rating, citing an appealing valuation, a focus on shareholder returns, and a strong competitive moat. The target price is set at $215, with the average target on the Street at $204.69.
Champion Iron Ltd. (CIA-T) and Oceanic Iron Ore Corp. (FEO-X) have been initiated with "outperform" ratings by National Bank Financial analyst Shane Nagle. Champion is seen as a "producer of choice" with significant value-in-use premiums, while Oceanic is described as a "well-positioned developer" with a coastal location and a "no-rail" development concept. The target prices are $5.75 for Champion and $1.70 for Oceanic.
Bombardier Inc. (BBD.B-T) has been upgraded by Desjardins Securities analyst Benoit Poirier, who sees the company generating revenue of US$13.5-billion or more and EBITDA of at least US$2.5-billion in 2030. The analyst raised the target price to $364, keeping a "buy" rating. The average target on the Street is $314.43.
South Bow Corp. (SOBO-T) has been initiated with an "outperform" rating by Raymond James analyst Michael Barth, who calls the Keystone pipeline system an "irreplaceable long-duration asset" with predictable cash flows. The target price is set at $60, with the average target on the Street at $47.11.
Hammond Power Solutions Inc. (HPS.A-T) has been upgraded by National Bank Financial analyst Baltej Sidhu, who sees the company benefiting from strong long-term pricing and cash flow expectations. The target price is raised to $355, maintaining an "outperform" rating. The average target on the Street is $360.60.
TransAlta Corp. (TA-T) has been upgraded by Desjardins Securities analyst Brent Stadler, who sees the acquisition of two natural gas-fired peaking facilities as accretive and increasing the contractedness of its fleet. The target price is raised to $18.50, maintaining a "hold" rating. The average target on the Street is $24.
TC Energy Corp. (TRP-T) has been downgraded to "equalweight" by Morgan Stanley's Robert Kad, citing valuation concerns. The target price is set at $103, with the average target on the Street at $93.61.
Kneat.com Inc. (KSI-T) has been downgraded to "hold" by Stifel's Justin Keywood, who sees the acquisition as a positive for investors. The target price is set at $6.50, with the average target on the Street at $6.56.
Exchange Income Corp. (EIF-T) has been upgraded by CIBC's Krista Friesen, who increased the target price to $141, maintaining an "outperformer" rating. The average target on the Street is $123.33.
