Which stocks could be winners from LNG Canada’s green-lit expansion, what companies made RBC’s Top 30 list for the fourth quarter and more from The Week in Stocks.

Stock of the week: First Quantum Minerals Ltd.

Shares of First Quantum Minerals Ltd. (FM:TSX) whipsawed this week, falling 31 per cent on Wednesday before recovering to close 15 per cent in the red on news of a Panamanian commission’s recommendations regarding the company’s giant copper mine in the country, Cobre Panama. Investors latched onto references to an “orderly closure” but several analysts said the focus should be more on the recommendation that the company reopen Cobre Panama under a framework that would self-finance the site’s future closure and rehabilitation. Shares have since regained just over three per cent as of Sept. 30, with many analysts reiterating their 12-month price targets for First Quantum shares on the belief that the findings were not as damaging to the company as initially believed. “We continue to think a reasonable deal can be reached that benefits both Panama and First Quantum, although uncertainty remains around a number of variables including ownership, taxes, royalties and the closure plan and timing,” Sam Crittenden, an analyst at RBC Capital Markets, said in a note on Sept. 30. Crittenden has a price target of $52 and an outperform/speculative risk rating on the stock. Shares closed Friday at $39.35. TD Cowen analyst Craig Hutchison joined other analysts this week in saying the key recommendation is a negotiated restart for the giant copper mine. Hutchison maintained his price target of $47. First Quantum has a price target of $48.96 based on the calls of 24 analysts, according to Bloomberg.

Keeping score

Possible winners from LNG Canada expansion

It was a big week for the energy sector after LNG Canada , a consortium of global energy companies, green lit phase 2 of the west coast facility that ships fuel to Asia. The decision “represents a significant milestone for the Canadian natural gas sector, and signals growing confidence in Canada’s energy investment environment,” Scotia Capital Markets analysts led by Robert Hope said in a note on Sept. 29. The team highlighted several companies that it said could benefit from the shift in sentiment. “Key beneficiaries” included Advantage Energy Ltd. (AAV:TSX), Birchcliff Energy Ltd., (BIR:TSX), Peyto Exploration and Development Corp. (PEY:TSX) and Paramount Resources Ltd. (POU:TSX). In tandem with the LNG Canada announcement, the expansion of the Coastal GasLink pipeline , which supplies LNG Canada, was given the go-ahead. “We believe the expansion phase can generate meaningfully stronger returns than the initial build, which was materially impacted by cost overruns,” the Scotia team said, which potentially supports shares of TC Energy Corp. (TRP:TSX). TC Energy owns a 35 per cent stake in Coastal GasLink. Hope and his team also predict rising gas production will spill over into areas such as transportation and storage, extraction and fractionation. “As a result, we view continued LNG development as a positive catalyst for AltaGas Ltd. (ALA:TSX), Keyera Corp. (KEY:TSX), and Pembina Pipeline Corp. (PPL:TSX) given their extensive natural gas and natural gas liquids infrastructure footprints,” they said.

Pacific Link oil pipeline still has ways to go but these stocks could benefit, analysts say

Though the proposed oil pipeline from Alberta to the West Coast — now called Pacific Link — still faces hurdles despite its designation as a project of national interest, according to CIBC Capital Markets analysts, companies associated with it may benefit, they said in a note on Oct. 1. As a project of national interest, the pipeline is now on an accelerated regulatory track moving it closer to construction. Among the next set of hurdles are the requirement for Indigenous consultation and “we continue to view successful Indigenous participation and economic partnership as essential for project advancement and one of the largest sources of schedule uncertainty,” Robert Catelliler, a CIBC analyst, said. Other hurdles include the economics of the pipeline and costs associated with the Pathways carbon capture and storage requirements. Inflation and rising interest rates could also balloon the overall cost of the project, estimated at $35 billion to $45 billion, by another $5.5 billion to $6.5 billion based on rates of 6.5 per cent, CIBC said. Pembina Pipeline Corp. (PPL:TSX) has the most direct exposure to the project with a 10 per cent interest, though that remains subject to a final investment decision. More broadly, CIBC said Keyera and AltaGas are best positioned to benefit from increased oilsands production, while Gibson Energy Inc. (GEI:TSX) could win on infrastructure growth. Other names that should experience an “indirect tailwind” include TC Energy and Rockpoint Gas Storage Inc. (RGSI:TSX), John Mould, a TD Cowen analyst, said in a note on Oct. 1. On the negative side, the project could compete with Enbridge Inc. (ENB:TSX) and South Bow Corp. (SOBO:TSX) projects, although Mould said he thinks that theme is “overblown.”

RBC’s Top 30 list gains some names, loses others, for the last quarter of 2026

RBC Capital Markets has updated it Top 30 list of best ideas, as markets head into the final stretch of 2026. For the fourth quarter, RBC analysts dropped names including Airbnb Inc. (ABNB:Nasdaq), beverage giant Diageo PLC (DGE:LN) and pharmaceutical company Merck & Co. Inc. (MRK:NYSE), though they maintained outperform ratings for companies, except Merck. New names on the list included Alphabet Inc. (GOOG:Nasdaq), American Healthcare REIT Inc., (AHR:TSX), Eli Lilly & Co. (LLY:TSX), MSCI Inc. (MSCI:Nasdaq) and Siemens Energy AG (ENR:GR). There were some Canadian names among the keepers including AltaGas Ltd. (ALA:TSX), Apotex Health Corp. (APTX:TSX), Canadian National Railway Co. (CNR:TSX), Constellation Software Inc. (CSU:TSX) and Loblaw Cos. Ltd. (L:TSX). Third-quarter performance for the top 30 list was muted, posting a return of 1.1 per cent in local currency compared with 2.2 per cent for the S&P 500 index and 0.4 per cent for the S&P/TSX composite index . Since inception, the list is up 13.5 per cent annualized versus 15.3 per cent for the S&P 500 and 14.7 per cent for the TSX.

Price target hikes and starts

  • Scotia Capital Markets analyst Kevin Fisk hiked his price target for Ovintiv Inc. (OVV:NYSE) to US$75 from US$70 ($106.79 from $99.39 for OVV:TSX) with the oil company ranking as a top pick. Shares closed Friday at US$60.34.
  • RBC Capital Markets analyst Andrew Wong initiated coverage of IsoEnergy Ltd. (ISO):TSX) with a rating outperform-speculative risk and a price target of $25 on the uranium company’s varied exposure to a tightening market. Shares closed Friday at $13.15.
  • Raymond James analyst Michael Barth hiked his price target for Enerflex Ltd. (EFX:TSX) to $49 from $48 after it announced a 450 megawatt power project. Shares closed Friday at $35.02.
  • Scotia Capital Markets initiated coverage on Tamarack Valley Energy Ltd. (TVE:TSX) with a price target of $17 on expected significant growth in production and free cash flow. Shares closed Friday at $13.38.
  • This TSX top gainer rose 13% this week as it looks to ride Meta’s wave
  • Ottawa’s ‘mega deduction’ tax write-off could boost these TSX stocks, analysts say

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.

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