Analyst Upgrades and Downgrades for Thursday

The financial landscape is shifting as analysts provide upgrades and downgrades to several companies. Key insights from their latest reports detail expectations and projections for growth across various sectors.

Analyst Upgrades and Downgrades for Thursday

Engineering and Construction Sector Outlook

• Jonathan Goldman from Scotia Capital expresses concern over Canadian engineering and construction shares, citing downside risks.
• Goldman estimates that the operating environment remains “little changed” with slower project efforts in the U.S. due to uncertainty.
• He forecasts that while demand is solid, growth will not significantly improve until the second half of 2026.

WSP Global Inc. (WSP-T)

• Goldman has reaffirmed WSP Global Inc. as a top pick, increasing the target price to $320, up from $318.
• The firm’s average target on the street stands at $334.82.
• Goldman notes that shares have risen 11% since the acquisition of TRC, helping WSP secure a dominant organic growth profile.

Stantec Inc. (STN-T) Updates

• Stantec’s target price has been lifted by Goldman to $162, up $1, despite facing tough comparisons in upcoming quarters.
• Goldman projects 2026 revenue at $7.1 billion, with a need for $400 million from mergers and acquisitions to meet targets.

AtkinsRéalis Group Inc. (ATRL-T)

• Goldman adjusted ATRL’s target slightly down to $112 from $113, projecting significant growth for its nuclear business.
• Anticipated contracts in 2026 could almost double the nuclear backlog, depending on regulatory outcomes.

SSR Mining Inc. (SSRM-T)

• Analyst Steven Green upgraded SSR Mining from “hold” to “buy,” citing attractive valuations amid rising gold prices.
• The new target is set at $43, up from $33, highlighting production growth projections of 30% in 2026.

Teck Resources Ltd. (TECK.B-T) & Hudbay Minerals Inc. (HBM-T)

• Craig Hutchison from TD Cowen shifted Teck’s rating from “buy” to “hold,” projecting a range-bound scenario until the merger completion with Anglo American PLC.
• Hutchison raised Hudbay’s target to $43 from $17 after the sale of a copper mine stake, aligning with favorable market conditions.

Canadian Technology Sector Analysis

• Richard Tse from National Bank anticipates a steady earnings season for Canadian technology firms with minimal surprises.
• Emerging AI trends continue to influence market performance, particularly affecting software valuations.

Key Takeaways

Analysts remain cautious yet optimistic about various sectors, balancing risks and growth expectations. Investor awareness of M&A activities, market recovery, and operational efficiency is expected to influence stock performance in the coming quarters.