Why analysts are hiking their price targets for Alimentation Couche-Tard, which companies are favourites as Big Banks head for earnings next week, why Dollarama is a “cornerstone holding” and how investors can play AI’s rising cybersecurity risks. The Financial Post explores those stories and more in The Week in Stocks.

Stock of the week: Alimentation Couche-Tard Inc.

Global convenience store operator Alimentation Couch-Tard Inc. (TSX:ADT) enjoyed an upbeat week on the markets as shares rose just over eight per per cent on well-received earnings, leading several analysts to hike their price targets for the Laval,Que.-based company. Of the 18 analysts who track the stock, eight hiked their price targets from a low range of $80 to a high range of $90, according to Bloomberg data. Shares traded Friday around the $76.50 level. RBC Capital Market’s Irene Nattel, who stood pat on her target price of $91, said in a note, “We remain constructive on this Global Top 30 name based on track record of disciplined capital allocation and ability to manage through challenging times.” For the year, Couche-Tard is down just under four per cent after its attempt to take over 7-Eleven owner Seven & i Holdings Co. failed, roiling the stock.

Keeping score

 

Scotia analysts ‘most optimistic’ about this Big Bank

It’s been a rip-roaring year for Canada’s banks as investors knocked share growth out of the park, boosting the S&P/TSX composite index’s bank index 32 per cent per cent year to date compared with 27 per cent for the index as a whole. The Big Six report earnings starting Dec. 2 and analysts updated their share price targets in expectation. “We expect another solid quarter from the large Canadian banks to end a very strong,” Mike Rizvanovic and Felix Fang at Scotia Capital Markets said in a note. The pair expect the banks’ capital markets units to churn out more gains, repurchase a “healthy” amount of shares and continue building excess cash. Provisions for credit losses (PCLs) will still be on the radar, particularly in the commercial area for Royal Bank of Canada (TSX:RY) and Bank of Montreal (TSX:BMO), they said. Of the Big Six banks, the Scotia pair said they are “most optimistic” about Canadian Imperial Bank of Commerce (TSX:CM). They have a price target for the bank of $123, which they hiked on Nov. 24. Shares traded Friday at the $120 level. They also hiked their price target for National Bank of Canada (TSX:NA) to $166 based on expected gains from the purchase of Canadian Western Bank. Shares traded Friday at the $169 level. 

For more price target upgrades on the Big Banks, take a look at

The Week in Stocks for Nov. 21

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Here’s why TD sees Dollarama as a key portfolio holding

Dollarama Inc. (TSX:DOL) earnings aren’t due until Dec. 11 but that didn’t stop TD Cowen from getting a jump-start on the results, with analysts expecting the company to increase its guidance for fiscal year 2026 on strength in Canada and Latin America and rising same-store sales among cost-wary consumers. TD is warning that the fourth quarter of 2026 could come in more muted on higher costs. Analysts Brian Morrison and Andrew Lopez will also be looking out for updates on the Mexico and Australia expansions. “We maintain Dollarama should be a cornerstone long-term portfolio holding,” they said. TD has a price target on Dollarama of $210. It was trading Friday near $200.

The investing opportunities in AI cyber dangers

Artificial intelligence has unleashed a whole new set of cybersecurity risks and created opportunity for investors, according to a JPMorgan Chase & Co. report. Stocks that could benefit from U.S. federal spending include Celebrite DI Ltd. (Nasdaq:CLBT), Tenable Holdings Inc. (Nasdaq:TENB), Crowdstrike Holdings Inc. (Nasdaq:CRWD) and Zscaler Inc. (Nasdaq:ZS). In the areas of M&A and consolidation JPMorgan said it likes Crowdstrike, Palo Alto Networks Inc. (Nasdaq:PANW) and Zscaler (Nasdaq:ZS). SailPoint Inc. (Nasdaq:SAIL) is the top pick as an identity security play, the report said. Beazley PLC (LN:BZ) is “the best positioned name to play the cyber insurance theme as the company could deliver strong returns even as the market slows down.” In the area of quantum innovation, IT and networking equity analysts recommend monitoring quantum-focused firms such as International Business Machines Corp. (NYSE:IBM), Cisco Systems Inc. (NYSE:CSCO) and Hewlett Packard Enterprises Co. (NYSE:HPE).

TD names some top picks for 2026

With a new year just around the corner, analysts at TD Cowen are starting to name drop top picks for 2026. For analysts, Rogers Communications Inc. (TSX:RCI/B) ticks the box on three points: the telco is more exposed to wireless than its competitors; its sports holdings aren’t fully priced in and capital expenditures are expected to fall, freeing up cash flow. TD has a price target for Rogers of $64. Shares traded Friday just under the $55 level. Cascades Inc. (TSX:CAS) also topped the list, with analysts citing a tightening North American cardboard and strong tissue market. TD has a price target of $14 for Cascades. Shares traded Friday at $12.55. Gildan Activewear Inc. (TSX:GIL) is close to closing its deal for Hanesbrands Inc., bolstering TD’s view that shares are suffering from a “punitive valuation.” TD has a price target of $103.44. Shares traded Friday near the $80 level.

Price target hikes

  • CIBC Capital Markets hiked BRP Inc.’s (TSX:DOO) price target to $115 from $110 on the idea that demand for its recreational vehicles will stabilize. BRP traded Friday at the $97 level.
  • Analysts Erin Kyle and Filip Stevanovic at CIBC Capital Markets analyst hiked their price target for Altus Group Ltd. (TSX:AIF) to $62 from $54 after the company indicated it would shed “non-core” operations and return capital to shareholders. Altus traded Friday just over $55.
  • TD Cowen analysts hiked their price target for Saputo Inc. (TSX:SAP) to $49 from $44 with TD’s Michael Van Aelst arguing in a note that “better growth lies ahead.” Saputo was trading Friday at just under $40.
  • CIBC hiked its price target for Teck Resources Ltd. (TSX:TECK/B) to $61 from $57 on a “revised valuation model” that incorporates its proposed combination with Anglo-American. Teck traded Friday at just under $60.
  • BMO Capital Markets hiked its price target for Eldorado Gold Corp. (TSX:ELD) to $53 from $50. Analyst Brian Quast said the stock is “undervalued” compared with peers. Eldorado closed Friday at 43.85.
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• Email: gmvsuhanic@postmedia.com