Wednesday’s upgrades and downgrades

Inside the Market’s roundup of some of today’s key analyst actions

Despite a “weak” finish to 2022, energy equity analysts at National Bank Financial are optimistic about the fortunes for Canada’s energy industry this year, seeing it as “down, but not out” and expecting macro tailwinds to mitigate potential concerns moving forward.

“2022 was unequivocally another solid year for the energy sector as it earned the top-performing sector within the S&P/TSX Composite index for the second consecutive year,” they said.

In a research report released Wednesday, the firm emphasized the sector’s equities have shown resiliency and sees further upside, pointing to current valuations and potential higher cash returns

“2023 outlook: down, but not out,” it said, with “cash returns poised to rise” as many companies are quickly approaching their net debt and leverage targets.

“We expect inventory-driven M&A to gain momentum, driven by the need for operators to pad drilling inventory after multiple years of underinvestment and a lack of transacting,” the analysts added.

After adjusting their financial models and projections for the year ahead, the analysts made a series of target price adjustments to their coverage universe.

Their large-cap changes include:

• Cenovus Energy Inc. (CVE-T, “outperform”) to $39 from $36. The average is $33.28.
• Imperial Oil Ltd. (IMO-T, “sector perform”) to $85 from $80. Average: $79.18.
• Suncor Energy Inc. (SU-T, “sector perform”) to $57 from $54. Average: $53.60.

Other changes include:

• ARC Resources Ltd. (ARX-T, “outperform”) to $21 from $23. Average: $25.04.
• Birchcliff Energy Ltd. (BIR-T, “outperform”) to $12 from $13.50. Average: $14.23.
• Baytex Energy Corp. (BTE-T, “sector perform”) to $7.75 from $9. Average: $8.89.
• Crescent Point Energy Corp. (CPG-T, “outperform”) to $15 from $17. Average: $14.77.
• Enerplus Corp. (ERF-T, “outperform”) to $23 from $21. Average: $24.98.
• Kelt Exploration Ltd. (KEL-T, “outperform”) to $7.50 from $8. Average: $9.52.
• NuVista Energy Ltd. (NVA-T, “sector perform”) to $16 from $15. Average: $16.81.
• Peyto Exploration & Development Corp. (PEY-T, “outperform”) to $18.50 from $17. Average: $17.88.
• PrairieSky Royalty Ltd. (PSK-T, “sector perform”) to $25 from $24. Average: $25.11.
• Tourmaline Oil Corp. (TOU-T, “outperform”) to $90 from $100. Average: $98.42.
• Vermilion Energy Inc. (VET-T, “outperform”) to $29 from $50. Average: $37.29.
• Whitecap Resources Inc. (WCP-T, “outperform”) to $15 from $15.50. Average: $14.80.

For gas, National Bank’s top picks for the year are Advantage Energy Ltd. (AAV-T, “outperform” and $16 target), ARC Resources Ltd. (ARX-T), Birchcliff Energy Ltd. (BIR-T) and Tourmaline Oil Corp. (TOU-T).

For oil, it prefers Cenovus Energy Inc. (CVE-T), Enerplus Corp. (ERF-T) , Headwater Exploration Inc. (HWX-T, “outperform” and $9.50 target) HWX.TO, Tamarack Valley Energy Ltd. (TVE-T ”outperform” and $8 target) and Whitecap Resources Inc. (WCP-T)

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National Bank Financial analyst Maxim Sytchev is “not exactly ecstatic” about the outlook for stocks in his Industrial Products coverage universe in 2023, but he thinks “best-of-breed should perform.”

“Every regime change is characterized by a different market leadership component (we’ve seen the largest “old school” vs. broader economy divergence – Dow Jones vs. S&P 500 in 70 years in 2022) and as we’ve gotten used to FOMO, TINA + et al. over the last 10 years, investors will be gravitating towards the next set of compounders,” he said.

“While it’s easy to fall into the trap of viewing one’s own coverage universe as its proverbial centre, we believe that themes around 1) supply chain relocalizations due to geopolitical tensions, 2) focus on environment / resiliency; 3) growth at reasonable price; and 4) tailwinds of government programs, make our top ideas (ATA, CIGI, STN and WSP) compelling. One word of caution – general inflation trends are hard to suppress when consulting peers are witnessing 4-per-cent-plus wage growth in 2023.

With that view, Mr. Sytchev made a pair of rating changes on Wednesday.

Seeing the opportunity of “picking up a top-notch quality compounder at a fair price,” He upgraded Toromont Industries Ltd. (TIH-T) to “outperform” from “sector perform” previously.

“TIH remains a quality stalwart amid the Canadian industrial coverage and our July downgrade had nothing to do with the company’s operational reliability (down 4 per cent since then vs. up 4 per cent for the TSX),” he said in a note. “With the shares underperforming the market as valuations have come down due to macro uncertainty, we expect 2023 to be the year for TIH to once again outperform, hence why we are upgrading the shares.

“Operationally, TIH has a lot of positive momentum behind it, with construction and commodity markets supportive at the moment and management continuing to execute well as the tight equipment market pushes clients towards high-margin rentals / rebuilds. With changes at the Board level and management expected to be finalized in 2023, we view the catalyst from M&A deployment as more likely (net cash position affords a lot of optionality down the line). With that, we would like to pick up the shares during the current macro wobble, supported by the fact that the current 2024 P/E has dropped to below 20 times, narrowing the premium over the S&P 500 P/E (17.3 times). At the time of our downgrade the premium over S&P 500 was more than 5 times. With the multiple coming down, we view this as an opportune time to pick up a high-quality company at a fair price.”

His target for Toromont shares rose by $1 to $110, below the $117.38 average on the Street.

Conversely, believing a recent share price rally suggests the company has “grown into its fair valuation,” Mr. Sytchev downgraded Stella Jones Inc. (SJ-T) to “sector perform” from “outperform.”

“SJ was the strongest performer in our coverage universe in 2022 with a price return of 21 per cent, compared to a mean of negative15 per cent (negative 9 per cent for the TSX; negative 19 per cent for the S&P500),” he said. “Since our July 13, 2022 note - Deep dive on value + cyclicality; would MBO work? – highlighting the company’s inherent value, shares have rallied 50 per cent. In the same time span, the P/2023EPS multiple expanded to 12.3 times from 9.1 times while EV/2023E EBITDA went to 9.1 times from 7.6 times despite the time value discount factor rolling forward six months.

“While earnings have no doubt been better that expected on strong pole growth, resilient tie demand and prudent cost control, we think the ‘easy money’ has already been made given the recent share price rally. Our outlook on the name remains constructive, especially with increased Infrastructure Investment and Jobs Act (IIJA) dollars flowing through to broadband network expansion and grid modernization projects, but we think the increased growth expectations priced into the stock will ultimately temper forward-looking returns relative to the last few quarters. As such, we are downgrading SJ.”

His target rose by $1 to $54, below the $56.57 average.

Making target adjustments across his coverage universe, Mr. Sytchev picked four preferred stocks for 2023:

• ATS Automation Tooling Systems Inc. (ATS-T, “outperform”) with a $57 target, up from $53. Average: $57.57.
• Colliers International Group Inc. (CIGI-Q/CIGI-T) with a US$130 target, up from US$122. Average: US$132.57.
• Stantec Inc. (STN-T, “outperform”) with a $78 target, up from $74. Average: $76.91.
• WSP Global Inc. (WSP-T, “outperform”) with a $185 target, up from $181. Average: $181.07.

“ATA is structurally levered to reshoring / augmenting tight labour market capacity while heavy life science/food/EV/nuclear skew makes the business more defensive vs. prior cycles. WSP (and STN especially) are major beneficiaries of sustained infra spending momentum, particularly in the U.S. CIGI’s asset management business provides downside protection and is the only large cap under our coverage that (almost fully) discounts a negative 2023 macro event- hence we are buying quality at a reasonable price,” he said.

His target changes were:

• AutoCanada Inc. (ACQ-T, “sector perform”) to $27 from $28. Average: $40.45.
• ABC Technologies Holdings Inc. (ABCT-T, “sector perform”) to $6 from $5. Average: $5.50.
• Stantec Inc. (STN-T, “outperform”) to $78 from $74. Average: $76.91.
• North American Construction Group Ltd. (NOA-T, “outperform”) to $24 from $22. Average: $23.20.
• Ritchie Bros Auctioneers Inc. (RBA-N/RBA-T, “sector perform”) to US$62 from US$65. Average: US$61.86.
• SNC-Lavalin Group Inc. (SNC-T, “outperform”) to $39 from $36. Average: $35.42.
• Stelco Holdings Inc. (STLC-T, “sector perform”) to $49 from $47. Average: $48.23.

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Expecting its acquisition of Yamana Gold Inc.’s (YRI-T) South American asset portfolio to be successfully completed, RBC Dominion Securities analyst Michael Siperco raised his recommendation for Pan American Silver Corp. (PAAS-T, PAAS-Q) to “outperform” from “sector perform” on Wednesday.

In November, Pan American and peer Agnico Eagle Mines Ltd. (AEM-T) swooped in to acquire the Toronto-based miner in a US$4.8-billion deal, outbidding South Africa’s Gold Fields Ltd.

“We continue to see the transaction as significantly accretive on an EBITDA/cash flow basis, mitigating expected production declines and improving the quality of the portfolio,” said Mr. Siperco.

“We expect PAAS shareholders (50 per cent plus 1) to approve the transaction, with the special meeting scheduled for 31 Jan, and the deal to close in 1Q23.”

Also seeing the restart of its Escobal mine in Guatemala and potential divestments of higher cost/shorter life assets providing further near-term upside for Pan American shares, he raised his target to US$22 from US$19, noting it’s trading a discount to its senior/silver peers. The average is US$22.37.

“At a forecast 1.5moz AuEq/114moz AgEq of production in 2024 (or almost 2.0moz including Escobal), PAAS is approaching senior producer levels while trading at a 30-per-cent P/NAV discount to larger peers, and now a smaller discount to silver-focused peers,” he concluded. “Execution on portfolio rationalization, operations, incorporating the Yamana assets, restarting Escobal and advancing the LC Skarn project could lead to a re-rate of the stock over 2023.”

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Entering 2023, Canaccord Genuity analyst Dalton Baretto is “bullish on the prospects for industrial metals in general and copper in particular, although we acknowledge that it could be a bumpy ride.”

In a research report released Wednesday titled Fasten your seatbelts!, he said his optimistic view is based on a quartet of factors: the end of China’s “zero-COVID” policy and the subsequent re-opening of its economy; ongoing Chinese stimulus and support for the property sector; “peaking U.S, Fed hawkishness and the possibility of a pivot, coupled with ongoing declines in the USD” and the impact of ongoing supply disruptions and a “very limited” surplus inventory.

“We view the possibility of a widespread global recession as a non-trivial probability; that said, from a commodity consumption perspective, we do not believe this is overly material as we do not expect China to be part of this recession,” said Mr. Baretto. “Perhaps perversely, a global recession could result in the Chinese government actually ramping up stimulus to offset a drop in export orders, which could be a net positive for commodities. Over the medium and long term, we believe the ongoing polarization of the global economy coupled with the de-dollarization of the commodity trade by both major producers and buyers will ultimately be inflationary and support commodity prices in USD terms.”

The analyst warned the first quarter could “see macro pressure on the base metals, followed by positive performance from Q2 onward as the Chinese reopening accelerates, stimulus measures take hold, and the Fed stops tightening.”

“We prefer equities with strong catalysts and leverage to copper,” he added.

Mr. Baretto lowered his recommendation for Champion Iron Ltd. (CIA-T) to “hold” from “buy” with a target of $7.50, up from $5.50 and above the $6.98 average on the Street.

“We are downgrading CIA ... given the significant rally in the company’s share price and our belief that the iron ore price has run ahead of near-term fundamentals,” he said. “While the stock continues to trade at reasonable multiples and the company has significant value creation opportunities, we do not believe these will be reflected in the share price in the near term.”

The analyst also selected four top picks for the sector entering earnings seasons, raising his targets for each.

They are:

* Capstone Copper Corp. (CS-T) with a “buy” rating and $8 target, up from $6. Average: $6.27.

“CS, where we believe the completion of the MVDP project by year-end will result in a significant multiple re-rating (currently trades at just 3.0 times 2024 estimated EBITDA),” he said.

* Hudbay Minerals Inc. (HBM-T) with a “buy” rating and $11 target, up from $9.50. Average: $9.47.

“HBM, where a focus on cash flow generation (31-per-cent FCF yield for 2023), a more cautious approach to Copper World, and a very attractive valuation following 2022′s underperformance sets the stage for a rebound in 2023. We note HBM’s significant gold exposure as well – we are as constructive on precious metals as we are on the industrial commodities in 2023,” he said.

* Ivanhoe Mines Ltd. (IVN-T) with a “buy” rating and a $14 target, up from $12. Average: $14.33.

“IVN, where the ongoing ramp-up of Kamoa-Kakula coupled with an expanded Phase 3 plan, drill results from the Western Forelands and a potential consolidation of the company by its large Chinese shareholders should be meaningful tailwinds for the share price,” he said.

* Filo Mining Corp. (FIL-T) with a “speculative buy” rating and $36 target, up from $25. Average: $27.05.

“FIL, where new drill results and a maiden resource for the high-grade sulphide core coupled with ongoing strategic movements by the Lundin family toward the longerterm future of the district should support the share price in 2023,” he said.

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Meanwhile, RBC Dominion Securities analyst Sam Crittenden warns of the potential for negative estimate revisions when North American base metal miners release their fourth-quarter results and 2023 guidance later this month.

“The miners are rallying to start 2023 due to optimism around China’s re-opening and slowing FED rate hikes; however, fundamentals in the physical market don’t appear to have changed much,” he said. “Low inventories, supply disruptions and potential for stimulus in China are pushing copper prices higher; although we expect moderating demand and rising supply to keep a lid on prices and we estimate $3.75 per pound for 2023 (consensus is $3.52 per pound). We see risks over the next month as 2023 guidance is released with potential for lower production and higher costs relative to current estimates; although if copper keeps rallying alongside China re-opening maybe that won’t matter. To re-cap 2022, copper was down 15 per cent while the North American base metals were up 1 per cent.”

After making minor adjustments to his earnings per share and EBITDA projections for the fourth quarter, Mr. Crittenden said guidance releases are “likely to underwhelm” investors.

“Guidance updates from the global diversified miners in early December saw production below estimates with higher costs, and we expect this trend to carry over to the North American base metal miners in the coming weeks,” he said. “Higher costs shouldn’t be surprising but consensus C1 estimates still see a 9-per-cent decline in 2023 vs. 2022. We could also see lower production due to lingering productivity issues and lost sustaining capital spending during the pandemic.”

He named four “preferred names” heading into earnings season, noting: “We believe Teck Resources benefits from elevated coal prices in the near term while the QB2 ramp up can grow copper production by 60 per cent by 2024, Ivanhoe’s Kamoa-Kakula copper mine continues to demonstrate its world-class potential, Capstone can unlock value as they execute on near term growth, while Champion Iron has strong growth potential as phase 2 ramps up.”

His recommendations and targets for those stocks are:

* Capstone Copper Corp. (CS-T) with an “outperform” rating and $6 target. Average: $6.27.

Analyst: “We expect a neutral reaction to Captone’s Q4 and guidance release assuming the budget and timeline for the Mantoverde expansion is maintained. The focus for 2023 is around ramping up production at Mantos Blancos with the sulphide circuit completed in 2022, and completing the sulphide expansion at Mantoverde by the end of 2023 which sets up strong growth into 2024 for Capstone. Chilean tax reform remains a key consideration for Capstone with Chile representing 70 per cent of our NAV estimate. An updated feasibility study for Santo Domingo, incorporating synergies with Mantoverde, is expected in H2/2023 which should highlight future growth potential.”

* Champion Iron Ltd. (CIA-T) with an “outperform” rating and $7 target. Average: $6.98.

Analyst: “We expect a neutral reaction from Champion shares to FQ3 results that we expect to be up slightly quarter-over-quarter on higher volumes as Phase 2 production and sales ramp up, partially offset by elevated operating and shipping costs. We expect operating costs to remain elevated through the ramp which is typical of mine start-ups. We estimate EPS of $0.07 vs. consensus of $0.10 and EBITDA of $88-million vs. consensus of $103-million. While our estimates are slightly below consensus we expect the focus to continue to be on the ramp up of production and sales as well as progress on the off-site work programs associated with the Phase 2 project, and specifically the upgrades at the port. We will look for any updates on the company’s portfolio of growth projects and potential timeline on a decision to move forward. We could see the company provide details of the DR feed plant technical study with results. "

* Ivanhoe Mines Ltd. (IVN-T) with an “outperform” rating and $12 target. Average: $14.33.

Analyst: “We expect a neutral reaction to Q4 financial results with production and 2023 production guidance pre-released. There could be some cost pressure reflected in C1 cost guidance, although Ivanhoe benefits from relatively stable local power and labour costs. Ivanhoe plans to release an updated mine plan for Kamoa-Kakula the week of January 30th and we expect some production to be brought forward due to a larger Phase 3 and 4 vs. the prior 2020 study; however, costs and capex could be higher as an offset. Other catalysts in 2023 include drilling from the Western Forelands property to the west of KamoaKakula, followed by first production at Platreef and Kipushi in 2024.”

* Teck Resources Ltd. (TECK.B-T) with an “outperform” rating and $60 target. Average: $55.57.

Analyst: “We could see some weakness around Teck’s coal sales for Q4 as harsh weather in B.C. in late December could put sales at the low end or below Teck’s 5.0-5.4Mt guidance range for Q4 (CP carload data suggests coal sales of 4.8Mt but there may have been some inventory buffer at the ports). Teck provided some direction for 2023 production guidance with Q3 results although there could be still be some negative estimate revisions around costs and capex. The focus for 2023 is on the ramp up of QB2 and executing on coal sales guidance.”

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In other analyst actions:

* Raymond James analyst Rahul Sarugaser initiated coverage of Toronto-based Arch Biopartners Inc. (ARCH-X) with a “market perform” rating and $3.50 target, below the $6 average.

“Arch Biopartners is a clinical-stage biotechnology company developing novel drugs for the treatment of organ inflammation by inhibiting the DPEP-1 pathway: a novel mechanism of action vs. inflammation first described by ARCH scientists, published in Cell (2019), and further elucidated in the context of kidney inflammation in Science Advances (2022),” he said. “During CY23, ARCH is poised to enter its second Phase II clinical trial with its lead candidate, LSALT peptide (or Metablok)—a demonstrated DPEP-1 inhibitor discovered and developed by ARCH—addressing cardiac surgery-associated acute kidney injury (AKI).”

* Mr. Sarugaser trimmed his Organigram Holdings Inc. (OGI-T) target by $1 to $2 with an “outperform” rating ahead of the release of its first-quarter results on Thursday to align with its peers. The average is $2.14.

“We see OGI as one of Canada’s best-run cannabis businesses, with increasingly impressive ownership of Canadian market share and escalating international activity. While changes to U.S. cannabis legislation remains at a stand-still, we view OGI as one of the best quality (and best-priced) names in the entire cannabis complex,” he said.

* Stifel’s Justin Keywood increased his ATS Corp. (ATS-T) target to $75 from $66, keeping a “buy” rating. The average is $57.57.

“ATS has secured US$458-million (C$624-million) of new EV bookings within the past three quarters, related to battery pack automation, including a US$81-million (C$111-million) win announced last week,” he said. “The wins help provide visibility to solid results through 2024, including organic growth and supplementing already tailwinds for an automation business that is mostly in resilient segments at 80 per cent of sales. We also see prospects for ATS to resume M&A after a bit of a pause in 2022, where there is a strong track record with ROIC almost doubling since 2018. The prospects of a U.S. stock listing could also help widen the investor base and bridge the gap in valuation, where ATS is trading at only 11.5 times C2023 EBITDA, 30 per cent below peers. ATS’ share price has appreciated 250 per cent since the current CEO started in March 2017, but we continue to see additional upside, and ATS remains our top pick.”

* Updating his forecast to account for realized uranium prices in the fourth quarter, Raymond James’ Brian MacArthur trimmed his target for Cameco Corp. (CCO-T) to $44 from $43 with an “outperform” rating. The average is $44.40.

“We believe Cameco provides investors with lower-risk exposure to the uranium market given its diversification of uranium sources,” he said. “These sources are supported by a portfolio of long-term contracts that provide some downside protection in periods of depressed spot uranium prices, while maintaining optionality to higher uranium prices. In addition, the company has multiple operations curtailed that can be brought back should uranium prices increase. Although the 2021 tax court decision applies only to the 2003, 2005, and 2006 tax years, we view it as a positive for CCO given we believe it will be relevant in determining the outcome for other years and reduces risk related to the CRA dispute.”

* Barclays’ Brandon Oglenski raised his target for Canadian National Railway Co. (CNR-T) to $170 from $160 with an “equalweight rating, while JP Morgan’s Brian Ossenbeck moved his target to $167 from $165 with a “neutral” recommendation. The average is $161.43.

* Mr. Oglenski also bumped his target for Canadian Pacific Railway Ltd. (CP-N, CP-T) to $115 from $110 with an “overweight” rating, while Credit Suisse’s Ariel Rosa cut his target to US$83 from US$88 with a “neutral” rating. The average is $114.08.

“4Q rail volumes came in a bit below targets, as economic activity and challenging weather took a toll,” said Mr. Rosa. “This makes us incrementally cautious on 4Q, particularly on Canadian rails. For 2023, we expect improving service, better network fluidity, and inflation-plus pricing to support modest margin improvement. Street targets for both volume and pricing seem conservative in our view, presenting opportunity to surprise to the upside if we avoid a steep recession (our base case). Rails once again out-performed the S&P500 in 2022 (their 9th year in the past 11). Nevertheless, U.S. rails were still down double-digits. We note that consecutive years of negative returns for the rails are rare. We expect modest gains in 2023 – likely ahead of the S&P500 - aided by low expectations, particularly for U.S. rails. The CP-KCS merger will be the key story to watch in ‘23 (expected to close in Feb.). While we expect it to progress smoothly, integration presents downside risk to CP given its elevated valuation.”

* National Bank’s Adam Shine reduced his Cogeco Communications Inc. (CCA-T) target to $88 from $96 with a “sector perform” rating. The average is $90.70.

* Scotia Capital’s Eric Winmill increased his target for shares of Filo Mining Corp. (FIL-T) to $27 from $24.50 with a “sector outperform” rating. The average is $27.05.

* Jefferies’ Christopher LaFemina raised his targets for First Quantum Minerals Ltd. (FM-T, “outperform”) to $37 from $32 and Teck Resources Ltd. (TECK.B-T, “outperform”) to $65 from $60. The averages are $30.86 and $55.57, respectively.

* Barclays’ John Aiken increased his targets for Great-West Lifeco Inc. (GWO-T) to $35 from $32 with an “equalweight” rating and Sun Life Financial Inc. (SLF-T) to $68 from $63 with an “overweight” rating. The averages are $32.89 and $67.04, respectively.

“The macro environment will likely be a positive for reported earnings, but the anticipated pressure on client balances and pandemic restrictions in China may limit much of the underlying growth potential,” said Mr. Aiken.

* Trimming his fourth-quarter financial expectations for Guru Organic Energy Corp. (GURU-T) ahead of a late January release, Stifel’s Martin Landry cut his target for its shares to $2.85 from $5 based on lower valuation multiples, reiterating a “hold” rating. The average on the Street is $5.71.

“We have revised our estimates lower to reflect recent trends and now expect revenues to reach $6.7 million ($7.7 previously), down 21 per cent year-over-year and slightly lower than consensus at $7.2 million,” he said. “In Q4FY22 GURU has a difficult comparable as last year the company benefited from a channel fill when PepsiCo placed its first order as the official distributor of GURU. This dynamic is not recurring this year making for a difficult comparable. We expect an EBITDA loss of $7.7 million ($7.1 previously), vs. consensus of -$7.2 million, compared to an EBITDA loss of $5.7 million last year as GURU continues to invest heavily in marketing to build brand awareness. Our forecasts for FY23 and FY24 remain unchanged.”

* Morgan Stanley’s Vincent Andrews trimmed his Nutrien Ltd. (NTR-N, NTR-T) target to US$91 from US$100 with an “equal-weight” rating, while UBS’ Joshua Spector cut his target to US$103 from US$110. The average is US$100.71.

“The 2023 card deck has been shuffled, but the quality of the Chemicals sector’s hand has only improved modestly,” Mr. Andrews said. “Our preliminary 2023 outlook from early October 2022 opined that 4Q22 would likely represent the trough for most Chemical markets. While 4Q results & 1Q outlooks will likely be a bit bumpy, we stand by our view that things are unlikely to get worse from here, though having a high conviction view on a materially positive inflection in 2H23 still seems early for us, whereas viewing the outlook as more of a reset to a post-COVID/inflation/central bank ‘new normal’ may be a safer assumption for now.”

* National Bank Financial’s Cameron Doerksen raised his TFI International Inc. (TFII-T) to $162 from $145 with an “outperform” rating. The average is $142.37.

* Bernstein’s Nadine Sarwat lowered her target for Tilray Brands Inc. (TLRY-Q, TLRY-T) to $4.40 from $5.30 with a “market perform” rating. The average is US$4.17.

* BMO’s Étienne Ricard raised his TMX Group Ltd. (X-T) target to $153 from $149, keeping a “market perform” rating, while Deutsche Bank’s Brian Bedell cut his target to $145 from $147 with a “hold” rating. The average is $154.43.