Why Amazon.com Inc. gained more than its Magnificent Seven brethren and how earnings season is unfolding for some of the TSX’s major stocks. Plus, why shares of Cameco Corp. appear unstoppable. And why this Canadian fashion retailer’s price target just got a nearly 20 per cent hike.
The Financial Post explores those stories and more in The Week in Stocks.

Stock of the week: Amazon.com Inc.

Most of the Magnificent Seven big tech names reported earnings this week:

Meta Platforms Inc.

(NYSE:META), Alphabet Inc. (NYSE:GOOG),

Microsoft Corp.

(NYSE:MSFT),

Apple Inc.

(NYSE:AAPL) and

Amazon.com Inc.

(NYSE:AMZN). But, it was Amazon that really caught investors’ attention, with its shares up the most — nearly nine per cent on the week — compared with the other four after its cloud unit posted the strongest growth rate in almost three years. Price targets were widely increased by analysts who follow the stock, according to Bloomberg. Of the 93 analysts who track the stock, 80 rated it a buy with an average price target of US$288. Shares were trading Friday at about US$245. The Mag 7, which also includes Tesla Inc. and Nvidia Corp., account for more than one third of the S&P 500’s market cap, according to David Rosenberg of Rosenberg Research and Associates Inc. Rosenberg, in a note, aimed to dampen some of the tech-stock euphoria, warning that the “bull market is in bifurcation,” as the S&P 500 sits at the same level as six weeks ago, excluding the tech sector.

Keeping score

An eye on earnings and price targets for big TSX names

Many big names on the S&P/TSX composite index reported earnings this week. Here’s a sample of some the key companies followed by analysts, and what happened to their share price targets.

CIBC Capital markets raised its price target for Tim Hortons parent

Restaurant Brands International Inc.

(TSX:QSR) to $111.86 from $108 as analysts Mark Petrie and Chantel Pearce think the shares are undervalued compared with peers. Shares of RBI are currently trading at the $93 level. Same store sales at both Tim’s and in the international segment rose 4.2 per cent and 6.4 per cent, respectively, year over year.

CIBC also significantly hiked its price target for

Celestica Inc.

(TSX:CLS) to $557 from $442 on third quarter results and guidance there were progressively stronger with third quarter earnings per share (EPS) beating estimates by sever per cent and fourth quarter EPS guidance rising 15 per cent. Shares are currently trading at the $487 level. “Our view is this guidance is still ‘conservative’ given the improved visibility into GOOGL, META, AMZN, and Open AI’s capex spending plans,” Todd Coupland and Dylan Ridout said in a note. Celestica builds artificial intelligence infrastructure and has emerged as a big winner in the AI boom.

Cenovus Energy Inc.

(TSX:CVO), reported earnings as it continues to work to seal its deal for MEG Energy Resources Inc. (TSX:MEG). Cenovus reported a strong quarter, Scotiabank Capital Markets analyst Kevin Fisk said in a note, as cash flow per share beat estimates and Cenovus said it was nearing completion of some major projects. Fisk maintained his price target of $29. Shares are currently trading at the $24 level.

Canadian National Railway Co.

posted a “modest” earnings per share beat that was mostly cost-driven “in an ongoing weak macro (environment),” TD Cowen analyst Cherilyn Radbourne said in a note. CN also repurchased about $1 billion worth of shares. TD maintained its price target of $165. Shares are currently trading around $134.

Cameco on a tear

Cameco Corp.

(TSX:CCO)  earned several price target hikes on news of a US$80 billion nuclear reactor deal between the U.S. government and Westinghouse Electric Co., which Cameco jointly owns with Brookfield Asset Management LP. Price hikes flowed in from Scotiabank Capital Markets, National Bank of Canada Financial Markets, Goldman Sachs Group Inc. and Raymond James. Scotiabank raised its price target to $150 from $130, while National Bank hiked its target to $140 from $130. Shares of Cameco are trading at the $150 level. National Bank analyst Mohamed Sidibe said the deal allows for eight reactors to be built where previously only four had been anticipated.

More large cap U.S. stocks available as CDRs

Bank of Montreal has jumped into the Canadian Depositary Receipt (CDR) game. These securities allow Canadian investors to buy shares of a foreign company in Canadian dollars on a Canadian stock exchange. BMO is initially offering five large-cap U.S. listed names including Advanced Micro Devices Inc. (NYSE:AMD), Alphabet Inc., Amazon.com Inc., Nvidia Corp. (NYSE:NVDA) and Tesla Inc. (NYSE:TSLA). Eventually, BMO will expand its offering to 15 names to include other big U.S. players such as Meta Platforms Inc., Walt Disney Co. (NYSE:DIS), Netflix Inc. (NYSE:NFLX) and Berkshire Hathaway Corp. (NYSE:BRK/B). “We’re looking at where we think investors will have interest,” David Hudson, managing director and head of structured solutions at BMO Global Asset Management, said. The bank previously launched a series of CDRs in Europe and Asia. BMO isn’t the first big bank to offer CDRs. CIBC started offering them back in 2021. The CDRs currently available through BMO were initially priced at $10 per share and will get investors a fraction of the shares currently on offer. “When you think of the underlying shares, some of them are trading at multiples of that in the U.S. currency,” Hudson said. There is a fee to manage hedging of 0.6 per cent per year.

  • How you channel your FOMO can determine whether you gain or lose in the stock market
  • How to make a graceful exit from certain exposures in the stock market

Price target upgrades and downgrades

  • BMO Capital Markets upgraded its share price to $76 from $64 for fashion retailer Groupe Dynamite Inc. (TSX:GRGD) after September web traffic showed sales rose 16 per cent year over year on massive growth in new U.S. customers of 81 per cent from last year. Shares are trading at the $69 level.
  • Scotiabank Capital Markets hiked its price target for Onex Corp. (TSX:ONEX) to $175 from $153 “on a series of transactions that we believe represent a major step in the transformation of its business model and enhancement of it value creation levers,” analyst Phil Hardie said in a note. Onex is currently trading at $122.
  • National Bank of Canada Capital Markets hiked its price target for Capital Power Corp. (TSX:CPX) to $73 from $66 on earnings that beat EBITDA estimates and news of the development of a 250 megawatt data centre and other similar projects in the United States. Capital is currently trading at the $70 level.
  • How you channel your FOMO can determine whether you gain or lose in the stock market
  • How to make a graceful exit from certain exposures in the stock market

Every week, the Financial Post breaks down the most interesting developments in the week’s world of investing, from top performers to surprising analyst calls and stocks to have on your radar.

Are you an investor looking for stock ideas and market insight? Sign up for the weekly FP Investor Newsletter here to get the best of the Financial Post’s investing news, analysis and expert commentary straight to your inbox.