Analyst Upgrades and Downgrades for Tuesday
Financial markets are abuzz with significant analyst upgrades and downgrades. Key companies like Shopify, Thomson Reuters, and others are drawing attention ahead of their quarterly reports. This overview captures vital actions from analysts, providing insights into market expectations and trends.
Analyst Upgrades for Tuesday
Shopify Inc. Receives Upgrades
ATB Cormark Capital Markets analyst Martin Toner upgraded Shopify Inc. (SHOP-T) to “outperform” from “sector perform” as it approaches the fourth-quarter 2025 financial results set to be released soon. Toner described Shopify as a “capital-light AI winner” that is well-placed amid various challenges in the SaaS sector.
The upgrade stems from several factors:
- Structural Operating Leverage: Shopify is expected to maintain high free cash flow margins despite contraction in other areas.
- Agentic Commerce Potential: Though growth data is still emerging, there is strong optimism regarding Shopify’s growth trajectory.
- Positive Industry Indicators: META’s strong revenue growth hints at similar potential for Shopify.
- Investment Appeal: Currently, Shopify offers significant growth potential in the e-commerce space, with forecasts of over 25% growth.
Toner set a target price of $250 for Shopify shares, while the average target across the market sits at $238.92.
Thomson Reuters Corporation Upgraded
MoffettNathanson analyst Michael Morton also upgraded Shopify to “buy” from “neutral.” He raised the price target from $122 to $150, citing an attractive entry point for investors.
Meanwhile, RBC Dominion Securities analyst Drew McReynolds upgraded Thomson Reuters Corp. (TRI-Q, TRI-T) to “outperform” from “sector perform” after a recent market pullback. He views the current market conditions as offering attractive upside potential for Thomson Reuters.
In his report, McReynolds emphasized that:
- The company’s growth potential remains strong despite current valuations.
- Continued enhancements in market position could yield higher returns moving forward.
McReynolds maintained an ambitious target price of $126 for Thomson Reuters, contrasting with a current street average of $138.70.
Other Notable Moves
Allied Gold Corp. Downgraded
In a separate move, Ingrid Rico from Stifel downgraded Allied Gold Corp. (AAUC-T) to “hold” from “buy” with a price target reflecting the firm’s acquisition offer. The shift comes after Allied agreed to be taken over by Zijin Gold International Co. in a deal valued at $5.5 billion, which left little room for a higher offer.
Gold Price Forecasts Rise
Stifel analysts significantly raised their gold price outlook. Predictions for 2026 now sit at $4,925 per ounce, a 23% increase. This optimistic forecast centers on existing market conditions that favor gold amid various structural changes in finance.
Their adjustments have led to a 20% hike in target prices across their coverage universe, with expected returns averaging 44%.
Conclusion
The recent upgrades and downgrades reflect a complex but optimistic view of various sectors, particularly technology and precious metals. Analysts are closely monitoring these developments, as they signal investor sentiment and potential market shifts in the coming months.
