Analysts’ forecast returns and recommendations for all stocks in the S&P/TSX Composite Index

In like a lion, out like a lamb.

That’s the way the first quarter of 2023 is shaping up for the S&P/TSX Composite Index.

At the end of January, the index was up 7 per cent with all 11 sectors posting gains for the month. In fact, Jan. 31 marked the peak for the Index so far this year.

In February, the positive momentum faded with the index sliding 2.6 per cent and eight sectors reporting negative price returns. As of the close on March 21, the index is barely in positive territory with a price return of just 1.4 per cent. However, there are still eight trading days left in the month and, as we have seen in recent weeks, a lot can happen in a few days.

Year-to-date, stocks have been volatile. Of the 235 securities in the S&P/TSX Composite Index, 40 per cent have realized double-digit moves - 60 stocks have rallied more than 10 per cent, while 33 have declined more than 10 per cent. As a result, it’s a good time to revisit analysts’ recommendations and target prices for all stocks in the Index.

This report includes a link to a list of analysts’ target prices, recommendations, forecast returns, and yields for all securities in the index grouped by sector and ranked according to their expected price returns (excluding dividend and distribution income).

The posted target price for each security is an average of all available target prices from analysts. A target price typically reflects an expected share or unit price 12 months from now based on an analyst’s financial modelling, such as a discounted cash flow or sum-of-the-parts model. For the yield provided, Bloomberg calculates this figure by annualizing the most recent announced dividend or distribution value.

It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. When a stock price falls, analysts may maintain their bullish expectations, inflating the forecast return. In addition, an outlier (extreme target price) can skew the average to the upside or downside, particularly when the number of analysts covering a stock is low. Don’t let a huge projected gain lure you into a position – it is critical to look at the company and industry fundamentals.

Click here to download an Excel version of the report.