Analyst Upgrades and Downgrades Announced for Wednesday

Rowan Ashford

Published: February 4, 2026 8:10 AM ET

Analyst Upgrades and Downgrades Announced for Wednesday

As the fourth-quarter 2025 earnings season approaches for Canadian diversified financial companies, National Bank Financial analyst Jaeme Gloyn anticipates an “uneven and uncertain macroeconomic backdrop.” However, he assesses a low probability of recession risks occurring. Gloyn emphasizes that companies demonstrating strong strategic execution will achieve the most upside by 2026.

Analyst Upgrades and Downgrades for Wednesday

In a client note, Gloyn made revisions to his estimates and target prices for various companies he covers, notably highlighting the property and casualty insurance sector’s strength. He identified two stocks as prime investment opportunities:

IGM Financial Inc. (IGM-T) – Rated “outperform” with a target price increased to $82 from $68, exceeding the average street target of $67.50. Gloyn projects IGM will outperform consensus due to consistent inflows in core businesses and increasing capital returns, including a 5% NCIB for 2026.
Trisura Group Ltd. (TSU-T) – Also rated “outperform,” with a target raised to $59 from $57, while the average street target is $54.50. TSU is expected to deliver double-digit top-line growth and maintain a strong ROE with a solid balance sheet.

Mr. Gloyn listed a trio of “core holdings” investors should consider:

Fairfax Financial Holdings Ltd. (FFH-T) – “Outperform” rating with an unchanged target of $3,200.
Element Fleet Management Corp. (EFN-T) – Target raised to $50 from $48, with positive growth projections.
Brookfield Corp. (BN-N/BN-T) – Target increased to US$58 from US$56.

In a notable downgrade, Gloyn changed his rating on ECN Capital Corp. (ECN-T) to “tender” from “outperform,” lowering the target to $3.10 from $5, matching the street average, as its acquisition is expected to proceed.

Insights from the Heavy Equipment Sector

TD Cowen analyst Cherilyn Radbourne expressed caution regarding Canadian heavy equipment dealers as they approach the earnings report. Nevertheless, she noted positive indicators from Caterpillar Inc. (CAT-N), which expects record sales for Q4/25 and a growing backlog of US$51 billion, indicating strong demand ahead.

Positive feedback for stock revisions in this sector includes:

Finning International Inc. (FTT-T) – Target increased from $88 to $100.
Toromont Industries Ltd. (TIH-T) – Increased target to $195 from $180.
Wajax Corp. (WJX-T) – Target raised to $28 from $25.

Precious Metals Market Outlook

Analysts from National Bank Financial have raised their commodity price forecasts for gold and silver in light of ongoing favorable market conditions. The new projections are:

Gold target: US$5,200 per ounce (up from US$4,500).
Silver target: US$100 per ounce (up from US$60).

Several companies saw increased target prices owing to this favorable sentiment.

Changes in Analyst Ratings

In additional analyst actions, notable changes included:

Raymond James lowered Enerflex Ltd. (EFX-T) to “outperform” from “strong buy” following a substantial stock increase.
Desjardins Securities lowered Superior Plus Corp.’s (SPB-T) target to $8.75 from $9, highlighting weather-related impacts and operational adjustments.
TD Cowen’s Tim James noted a minimal impact from Transat AT Inc.’s (TRZ-T) labor dispute and adjusted projections for their first-quarter results.

Overall, the analyst landscape for Canadian stocks remains dynamic, with strategic adjustments reflecting current market conditions and expectations moving into 2026.