Market Update (Canada)
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Canadian Stock Market Update
The TSX closed higher on Monday, June 16th, as gains in financial and consumer discretionary stocks outweighed losses in the energy sector. Investors rotated into bank stocks and retailers amid optimism over potential consumer resilience and hopes that interest rates may have peaked. However, traders remain cautious ahead of news on a Canadian trade agreement with the U.S., which could have broad implications for supply chains and exports. Economic indicators continue to show signs of weakness ahead, heightening uncertainty in the near term.
Canada-UK Trade and Defense Collaboration
Canada and the United Kingdom have taken a significant step toward strengthening bilateral ties by announcing the formation of a joint trade working group. According to a joint statement issued on Sunday, the group will deliver its recommendations to both countries’ prime ministers within the next six months. In addition to trade, the two nations also committed to expanding defense collaboration, signaling a renewed effort to deepen economic and strategic cooperation post-Brexit. This move could pave the way for a more formalized trade agreement and enhance Canada’s global trade footprint.
Canadian Housing Market
The Canada Mortgage and Housing Corporation (CMHC) reported that the annual pace of housing starts declined slightly in May, down 0.2% compared to April. The slowdown reflects ongoing challenges in the real estate market, including elevated interest rates, construction costs, and supply chain pressures. Despite this, housing demand remains underpinned by population growth and immigration, suggesting the softness may be temporary unless broader economic conditions deteriorate further.
Cybersecurity Incident – WestJet
WestJet Airlines is actively investigating a cybersecurity incident that has affected its mobile app and certain internal systems. The airline confirmed the breach on Friday but did not disclose the number of users impacted. While core flight operations have not been reported as compromised, the incident underscores ongoing cybersecurity risks in the transportation sector. WestJet is working with external experts and regulatory bodies to assess the breach and prevent future incidents.
Target and Ratings Updates:
Today, a total of 24 analyst rating updates were issued on Canadian-listed companies, reflecting a broad cross-section of sectors including mining, energy, technology, retail, industrials, and healthcare. These updates come from leading investment banks and research firms such as CIBC, Scotiabank, TD Securities, BMO Capital, and Morgan Stanley:
Bombardier Inc. (BBD-B:CA) CIBC maintained an Outperform rating, and a target price of $115.00.
Cameco Corp. (CCO:CA) received a target increase by Scotiabank, setting a new target price of $95.00 from $93.00.
Dundee Precious Metals (DPM:CA) saw multiple upgrades: TD Securities raised its target price to $23.00 and maintained a Buy rating. CIBC World Markets also raised its target to $23.00, while Scotiabank increased its target to $23.00.
Empire Company Ltd. (EMP-A:CA) had its rating maintained at Hold by TD Securities, with a target price of $48.00.
ERO Copper Corp. (ERO:CA) received a target increase by Scotiabank, setting a new target price of $26.00 from $24.00.
Eupraxia Pharmaceuticals (EPRX:CA) was assigned a Speculative Buy rating by Canaccord Genuity, with a $9.00 target.
First Quantum Minerals Ltd. (FM:CA) had its target price increased by Scotiabank to $24.00 from $22.50.
Hudbay Minerals Inc. (HBM:CA) saw its target price raised by Scotiabank to $15.50 from $14.00.
Ivanhoe Mines Ltd. (IVN:CA) received a target price downgrade by Citigroup, lowering the target to $20.00.
Lundin Mining Corp. (LUN:CA) had its target price raised by Scotiabank to $14.50.
Magna International Inc. (MG:CA) had its target price increased by Banc of America to $61.00 from $58.00.
Major Drilling Group International Inc. (MDI:CA) maintained a Buy rating by TD Securities with a target of $13.00.
Mattr Corp. (MATR:CA) was assigned a Buy rating by Canaccord Genuity, though no target was given.
Meg Energy Corp. (MEG:CA) maintained a Neutral rating by CIBC with a target of $28.00.
Nutrien Ltd. (NTR:CA) had its rating maintained at Hold by Morningstar, with a target price of $95.00.
Quest Diagnostics Inc. (DSGX:CA) maintained an Underperform rating by Morningstar, with a target price of $215.00.
Roots Corp. (ROOT:CA) saw multiple upgrades: TD Securities raised its target price to $3.75 while maintaining a Buy rating.
Russel Metals (RUS:CA) received a target update from BMO Capital, maintaining a Hold rating with a target price of $47.00.
Shopify (SHOP:CA) had its target price updated by D.A. Davidson to $170.00, maintaining a Buy rating.
Teck Resources (TECK-B:CA) had its target price updated by Morgan Stanley to $57.00, maintaining a Buy rating.
TELUS International (TIXT:CA) saw a target update from BMO Capital, maintaining a Hold rating with a target price of $3.00.
Transat A.T. Inc. (TRZ:CA) had its target price raised by TD Securities to $5.50 and $4.75, maintaining a Buy rating on both occasions.
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