What David Rosenberg is eyeing in Europe, why analysts hiked their price targets for the Big Banks and more from The Week in Stocks.

Stock of the week: Air Canada

Shares of Air Canada soared nearly 15 per cent earlier in the week, finishing as the top gainer on the S&P/TSX composite index after the carrier agreed to sell a 25 per cent stake in its Aeroplan loyalty program for $2.5 billion to a consortium of investors including Blackstone Inc. , Caisse de depot et placement du Quebec , PSP Investments and British Columbia Investment Management Corp. ATB Cormark Capital Markets analyst Chris Murray called the deal a “positive surprise,” adding it increased ATB Cormark’s “conviction that (Air Canada) remains undervalued.” Murray hiked his price target for the airline to $45 from $32 — the highest call on the Street — on the thesis that the Aeroplan sale will allow Air Canada to speed up debt repayment and buybacks. Shares closed Friday at $29.64. BMO Capital Markets analyst Fadi Chamoun maintained an outperform rating on Air Canada and held his price target at $37, saying in a note that where the shares go next depends on management’s “ability to successfully execute its fleet expansion strategy and deliver against its longer-term earnings and cash flow objectives.” Air Canada’s 12-month price target is $33.69 based on the calls of 13 analysts, according to Bloomberg.

Keeping score

Rosenberg eyes European utilities and industrials despite geopolitical shifts

David Rosenberg, president of Rosenberg Research & Associates Inc., has his eye on European industrials as he looks to rebalance his investment model for the continent. “European companies have reported solid profit growth,” Rosenberg said in a report on Aug. 13, adding this results in an upgrade to growth expectations for the Stoxx Europe 600 index for 2026. For the fiscal year, analysts are calling for 10 to 12 per cent profit growth in Europe. “The resilience of corporate profits amid all the geopolitical shifts and policy volatility is a remarkable characteristic of the current market cycle, in which each short-lived correction has become an opportunity to buy the dip and carry stock indexes to new highs,” Rosenberg said. European stocks also offer an added advantage of diversification away from artificial intelligence and the risks that have dogged that trade on U.S. markets and in Asia. The model continues to favour utilities. Industrials were added to the buy list, joining long/buy ratings for electrical equipment and tech-related exposure. Insurance, software, oil and gas and personal and household goods landed on the short side of the model’s ledger. Long additions include the MSCI EUR Info Tech index (MXEUOIT), STXE 600 Industrial Goods and Services (SXNP), MSCI Europe Electrical Equipment (MXEUOEL), STXE 600 Utilities (SX6P), STXE 600 Technology (SX8P) and STXE 600 Food & Beverage (SX3P).

Raymond James analysts hike price targets for Canada’s Big Banks

The S&P/TSX composite index is up nearly 16 per cent year to date and Canadian financials have played their part, gaining nearly 25 per cent during that period as five of the six Big Banks placed among the top 10 gainers year to date in the S&P/TSX financials index. In anticipation of earnings from Canada’s Big Six , which start third quarter reporting the week of Aug. 24, Raymond James analysts led by Stephen Boland have updated their estimates. At the same time, they’ll be looking for commentary from executives on plans to put to work excess capital of approximately $74 billion, Canadian retail credit trends and the outlook for Canadian commercial loan growth. Bank of Montreal (BMO:TSX) is the analysts’ top pick for its greater exposure to commercial lending and Raymond James raised the target price to $268 from $233.50. Shares closed Friday at $257.88. They also hiked their price target for Toronto-Dominion Bank (TD:TSX) to $180 from $155, calling for spending on anti-money laundering provisions to slow in the second half of the year and for TD’s U.S. banking division to report consecutive loan growth for the first time since the first quarter of 2025. Shares closed Friday at $172.61. Bank of Nova Scotia (BNS:TSX) looks like good value to Raymond James given its shares continue to trade at a discount to peers, they said. The team hiked its price target to $137 from $121. Shares closed Friday at $126.98. They also hiked price targets for: Royal Bank of Canada (RY:TSX) to $306 from $270.50 and shares closed Friday at $300.70; Canadian Imperial Bank of Commerce (CM:TSX) to $173.50 from $155.50 and shares closed Friday at $X171.76; National Bank of Canada (NA:TSX) to $226.50 from $203 and shares closed Friday at $231.29.

Price target hikes

  • TD Cowen analyst Sean Stueart hiked his 12-month price target for CCL Industries Inc. (CCL/B:TSX) to $115 from $110 after second quarter EBITDA came in 100 basis points above the five-year average. Shares closed Friday at $96.50.
  • BMO Capital Markets analyst John Gibson hiked his price target for Bird Construction Inc. (BDT:TSX) to $85 from $75 after revenue jumped 23 per cent in the second quarter, rising to over $1 billion for the first time in the company’s history. Shares closed Friday at $73.14.
  • Raymond James analyst Michael Freeman hiked his price target for HLS Therapeutics Inc. (HLS:TSX) to $8 from $7 on the belief that the company has transitioned from a turnaround story to a “compelling growth and cash generation story.” Shares closed Friday at $3.90.
  • TD Cowen analyst Tim James hiked his price target for Cargojet Inc. (CJT:TSX) to $127 from $118 on higher than forecast free cash flow and lower than expected net debt. Shares closed Friday at $89.26.
  • National Bank of Canada analyst Dan Payne hiked his price target for Tidewater Renewables Ltd. (LCFS:TSX) to $22.75 from $13.25 after the energy and infrastructure company “crushed” earning with revenue and EBITDA coming in well ahead of expectations. Shares closed Friday at $20.69.
  • CIBC Capital Markets analyst Ty Collin hiked his price target for Linamar Corp. (LNR:TSX) to $120 from $115 as he rolled “modestly” increased forecasts into 2027. Shares closed Friday at $105.87.
  • Scotia Capital Markets analyst Mike Rizvanovic hiked his price target for Sagicor Financial Co. Ltd. (SFC:TSX) to $13 from $12 on a “good overall quarter” for the lifeco. Shares closed Friday at $8.63.
  • This TSX stock soared 28% this week with one analyst seeing ‘durable, profitable growth’
  • This TSX stock rose 15% this week and analysts see more upside, with the highest price target implying nearly 70%

The Week in Stocks is taking a short summer break and will be back Fri. Sept. 4.

• Email: gmvsuhanic@postmedia.com