NFI Group Inc. (NFI:CA) Top Canadian Stock Pick With 60 Percent Upside Forcasted

NFI Group Inc. (NFI:CA): Scotiabank Upgraded Target Price to $22

NFI Group Inc. (NFI:CA) (NFYEF)

NFI Group. is a Winnipeg-based manufacturer of buses and motorcoaches operates globally under brands such as New Flyer, Alexander Dennis, and Motor Coach Industries. The company is a leader in zero-emission transit solutions, producing electric and hydrogen-fuel-cell buses, supported by a stable aftermarket parts and service business.

Stock Forecast

NFI Group currently has short-term technical weakness that places the stock with a technical “Strong Sell”, however longer-term fundamentals and analyst sentiment show a far more optimistic outlook. The company’s shares currently trade well below consensus analyst targets, with an average 12-month price target of C$22.50, implying a significant upside potential of approximately 62%.

Analysts remain broadly bullish, maintaining a Strong Buy rating driven by the company’s leadership in the electric and zero-emission bus market, with improving order backlog, and ongoing recovery in supply chain conditions. Demand for public transit electrification continues to expand globally, and NFI is strategically positioned to benefit from government incentives and fleet renewal programs.

While short-term momentum indicators point to weakness, reflecting recent volatility and investor caution following broader market softness, analysts view the stock in a potential accumulation phase rather than a sign of structural decline. Improving profitability metrics, stronger cash flows, and execution on its operational turnaround plan could serve as major catalysts for sending the stock higher.

NFI Group presents a compelling value and growth opportunity within Canada’s clean transportation sector. Investors with a medium- to long-term horizon may find the current price levels attractive given the high implied upside and strong analyst confidence.

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