Trending Canadian Stocks
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August 12, 2026
Canadian stocks are entering the second half of the trading week with a increasingly valuation-sensitive backdrop. Today’s market action is being shaped by a combination of strong analyst revisions, company-specific catalysts and continued strength in the financial sector. Five themes stand out for investors in today’s market activity: Cargojet, Canadian banks, Montage Gold, Air Canada and CNQ.
1. Cargojet (CJT:CA)
Cargojet is arguably the most compelling individual stock story from today’s analyst activity. Multiple Canadian investment firms have raised their 12 month target prices on the stock. Desjardins Securities lifted its target to C$135 from C$126 and retained a Buy rating, while Scotiabank raised its target to C$125 from C$120 and maintained a Outperform rating. National Bank also increased its target to C$112 from C$109 with an Outperform rating.
From an equity-analysis perspective, the significance is less about any single target increase, and more about the breadth of analyst conviction. When several analysts have simultaneously raised estimates or targets, it indicates that the underlying earnings assumptions are being recalibrated rather than simply reflecting a change in valuation multiples.
Cargojet also has structural characteristics that support the investment case, including its leading position in Canada’s domestic overnight air-cargo market and contracted recurring revenue. The company has also received an investment-grade BBB (low) issuer rating from Morningstar DBRS.
The key risk is that expectations are now rising alongside the share price, with valuations proned to be stretched. Investors should therefore focus on operating margins, freight volumes, aircraft utilization, contract economics and free cash flow rather than simply focusing on today’s target increases.
2. Canadian banks (TD:CA) (BNS:CA) (CM:CA) (RY:CA) (NA:CA) (BMO:CA)
The second major theme is the strength of Canadian financials stocks Today’s analyst actions show a broad pattern of higher target prices across the major banks, with positive ratings remaining prevalent. BMO, Scotiabank, CIBC, National Bank, RBC and TD all featured positive target revisions ifrom numerous analysts today.
This is consistent with the broader market structure, as Canadian financial stocks now represent approximately 37% of the TSX, their highest weighting in eight years, while the Big Six banks have produced consecutive quarters of double-digit earnings growth. The sector is trading at elevated valuation levels, with forward earnings multiples around 15 times versus roughly 12 times for U.S. banks.
That creates an important distinction between fundamental momentum and valuation risk. Strong earnings growth supports higher intrinsic values, but a stock can still generate disappointing returns if the valuation multiple contracts faster than earnings grow.
For investors, the most important variables are therefore net interest margins, credit quality, loan growth, capital-market revenue, provisions for credit losses and return on equity. With bank valuations already elevated, incremental upside will increasingly need to come from earnings growth and capital returns rather than multiple expansion.
3. Montage Gold (MAU:CA)
Montage Gold represents the higher-risk, higher-beta component of today’s stock story across the TSX. The company received several positive target revisions today, including ATB Cormark with a target at $22 per share, Stifel Nicolaus at $21 and Scotiabank at $20, in which all of the analysts have increased their valuations on the stock, based on the company’s outlook.
The investment thesis is fundamentally different from that of the banks or Cargojet, as MAU’s valuation is heavily influenced by the economics of the developing gold project, the current gold-price , construction and financing assumptions, and the company’s ability to execute on its development strategy.
The analytical advantage of a gold developer is operating leverage to the commodity price: if gold prices remain strong, project economics can improve disproportionately. The downside is equally important, as in the development-stage companies face permitting, construction, financing, dilution, cost inflation and execution risks that established producers or royalty companies do not face to the same degree.
4. Air Canada (AC:CA)
Air Canada is one of this week’s most interesting turnaround and event-driven stories. The stock jumped after the airline announced a deal involving a minority investment in its Aeroplan loyalty program. The transaction is expected to provide approximately C$2.5 billion of capital, with proceeds supporting debt repayment and share repurchases; Fitch also revised its outlook to positive.
BMO Capital Markets subsequently raised its target to $37 from $30 and maintained an Outperform rating.
Air Canada’s stock thesis is finally improving, even though the underlying operating environment remains challenging. Air Canada expects a strong fall travel season, particularly from corporate travel, but higher fuel and labour costs remain significant headwinds. The company reduced its 2026 core-profit outlook to C$2.9 billion–C$3.2 billion, below its previous range.
This creates a classic catalyst-versus-fundamentals situation. The Aeroplan transaction improves liquidity, reduces leverage and creates capital-allocation flexibility, but the sustainability of the equity rerating ultimately depends on whether passenger demand, pricing and cost control can offset fuel and labour inflation. Today however, investors are pushing the stock higher as they believe this move helps deleverage the company’s risk.
5. Canadian Natural Resources (CNQ:CA)
Canadian Natural Resources today shows analysts maintaining a bullish thesis on the stock, with the company’s energy and cash-flow outlook, supported by record Q2 2026 production of approximately 1.68 million BOE/d, strong adjusted earnings and increased 2026 production guidance. JPMorgan raised their price target to C$75 from C$67, signaling greater confidence in CNQ’s earnings power and production outlook. The company’s enormous production base, long-life reserves and diversified asset portfolio provide a strong foundation for consistent cash generation across different commodity-price environments. Rising production volumes should also provide operating leverage and support stronger free cash flow if crude prices remain favourable. The company’s ability to generate substantial cash flow allows it to invest in future production, while continuing to return capital to shareholders through dividends and share repurchases.
The primary risk for the company, remains the exposure to oil and natural gas prices, as weaker commodity prices could pressure earnings and free cash flow. Higher operating expenses, capital requirements and broader volatility in global energy markets are additional considerations for investors, behind a backdrop of inflationary pressures. However, CNQ’s scale, financial strength and production growth provide greater resilience than many smaller energy producers, while its strong operating position gives it the potential to benefit from sustained energy demand. With analyst sentiment improving and production reaching record levels, the company appears well positioned for continued earnings and cash-flow growth.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.