Analyst Rating Updates: Monday’s Upgrades and Downgrades
In today’s market analysis, various analysts have updated their ratings on several companies based on their recent performance and expected future outcomes. This roundup covers significant upgrades and downgrades, highlighting key sectors and expected trends.
Quebecor Inc. (QBR.B-T): Upgraded to Outperform
Adam Shine from National Bank Financial has raised his rating for Quebecor Inc. to “outperform” from “sector perform.” This comes after he increased his revenue forecast for the telecom company ahead of its upcoming first-quarter results on May 14. Shine predicts the Cable segment may return to revenue growth, which hasn’t occurred since Q3 2023.
His revenue projection stands at $1.388 billion, surpassing the consensus estimate of $1.362 billion. Shine’s EBITDA forecast is $577 million, while his adjusted earnings per share (EPS) estimate is 88 cents.
- Projections: 4.6% revenue growth in Telecom.
- Increased share target: $59 from $57.
- Estimated total return: 12.8%.
Saputo Inc. (SAP-T): Downgraded to Sector Perform
Vishal Shreedhar of National Bank Financial has downgraded Saputo Inc. from “outperform” to “sector perform.” This decision comes after an impressive share price increase of 85.9% since the start of 2025, significantly outperforming its consumer staples index.
Despite the downgrade, Shreedhar notes that the Montreal-based company still has opportunities for growth and profitability improvements.
- Target price reaffirmed: $46.
- Average target on the Street: $48.25.
Cascades Inc. (CAS-T): Lowered EBITDA Guidance
Jonathan Goldman from Scotia Capital expressed that Cascades’ recent EBITDA guidance cut is unsurprising amid challenging macroeconomic conditions. The company’s shares dropped 3.4% following a negative guidance update, which decreased the EBITDA expectation to $115 million to $120 million, down from a previous range of $130 million to $142 million.
- Factors contributing to the issue: Weather disruptions and increased transportation costs.
- Short-term forecast: Higher oil prices could further impact demand.
Cargojet Inc. (CJT-T): Target Price Adjustment
RBC analyst Walter Spracklin adjusted the target price for Cargojet Inc. to $140 while maintaining an “outperform” rating. This change reflects anticipated lower discretionary spending in the market. However, he sees Cargojet well-positioned for benefits as eCommerce volume rises.
Overall Market Trends and Investor Sentiment
The current evaluations reveal a mixed sentiment across the market, with several companies noted for their potential despite recent challenges. Analysts emphasize maintaining a cautious outlook while preparing for possible volatility driven by macroeconomic trends.
- Improved performance is expected as companies adapt to changing consumer trends.
- Continued scrutiny on earnings and strategic initiatives is anticipated during the earnings season.
