Analyst Updates: Monday’s Key Upgrades and Downgrades
Recent analyst updates reveal a cautious outlook for several sectors, particularly within the Canadian technology and commodities markets. Analysts are examining fourth-quarter estimates and adjusting stock targets based on changing market dynamics.
Technology Sector Forecasts
RBC Dominion Securities’ analyst Paul Treiber predicts relatively stable financial results for Canadian technology companies in the fourth quarter of 2025. However, he cautions that positive results are unlikely to alter the prevailing negative sentiment in the software sector.
Key Points from Treiber’s Analysis
- The macro environment appears stable.
- Canadian software stocks are experiencing compressing valuation multiples due to AI disruption concerns.
- Treiber has lowered price targets for seven software stocks amidst persistent negative sentiment.
Among companies identified as well-positioned for Q4 results are:
- Celestica: Price target adjusted to $400 from $490.
- Shopify: Target revised to $200 from $240.
- Kinaxis: Downgraded target to $200 from $235.
Commodity Market Insights
Desjardins Securities analyst Bryce Adams notes improving conditions in the commodities market, particularly for copper and uranium. He anticipates that producers will benefit from increased demand optimism and potential supply constraints in 2026.
Copper and Uranium Price Dynamics
- Copper prices surged in late 2025, reaching approximately $5.67 per pound.
- Uranium prices have recovered, averaging $78.50 per pound in December and $83.17 per pound in January.
Revisions in Target Prices
Several stocks have received target price adjustments based on expected performance in Q4 2025:
| Company | New Target Price | Previous Target Price |
|---|---|---|
| First Quantum Minerals Ltd. (FM) | $40 | $34 |
| Cameco Corp. (CCO) | $185 | $160 |
| Teck Resources Ltd. (TECK.B) | $74 | $65 |
| Lundin Mining Corp. (LUN) | $35 | $30 |
| Hudbay Minerals Inc. (HBM) | $36 | $30 |
Outlook for Retail and Financial Services
According to National Bank Financial analyst Vishal Shreedhar, Canadian Tire Corp. (CTC.A) is projected to experience solid earnings growth driven by margin expansion and a favorable revenue outlook. Expected earnings per share for Q4 2025 are $3.72.
Additionally, RBC Dominion Securities analyst Bart Dziarski highlights a mixed outlook for diversified financial companies, reaffirming some top investment ideas while also adjusting target prices for several entities.
As earnings season progresses, analysts will continue to monitor company performances and broader market conditions, making further adjustments to expectations and targets across sectors.
