Key Market Analyst Upgrades and Downgrades

As the trading week wraps up, analysts are making significant moves that could affect investment strategies. Let’s dive into some noteworthy changes.

Capital Power's Major Contract Boosts Share Outlook

Patrick Kenny at National Bank Financial has given a strong endorsement to Capital Power Corp. (CPX-T), highlighting a groundbreaking new contract that will see the company validate its U.S. recontracting abilities. This long-term deal extends the Midland Cogeneration Venture agreement to 2040, promising a staggering 85% increase in EBITDA—translating to an anticipated US$100 million boost annually.

Kenny notes that this contract not only fortifies Capital Power's positioning in the market but also reinforces a bullish narrative for its natural gas generation fleet. Consequently, he raised his target price for Capital Power shares from $63 to $66, maintaining an ‘outperform’ rating.

Further Target Adjustments by Analysts

Other analysts chimed in with their projections for Capital Power: - Robert Hope of Scotia raised his target to $70 from $67, reflecting the positive economic shift. - Brent Stadler of Desjardins increased his price target from $75 to $80, calling this contract a "material catalyst" for growth. - Nate Heywood from ATB Capital adjusted his target to $68 from $60, emphasizing demand for U.S. gas generation as a driver for long-term growth.

Healthcare Opportunities on the Horizon

Stifel's Justin Keywood pointed out the burgeoning potential in Canadian healthcare infrastructure. He’s upgraded CareRx Corp. (CRRX-T) to ‘buy’, appreciating the company’s positioning in a market ripe for expansion as Ontario launches a vast plan for new long-term care beds. His newfound optimism pushes his target price from $2.25 to $4.00.

Evertz Technologies Initiates Coverage with Caution

On the tech front, Paul Treiber at RBC Dominion has initiated coverage on Evertz Technologies Ltd. (ET-T) with a cautious ‘sector perform’ rating, setting a target of $12 per share. He observes promising returns on investment but flags concerns over its slow growth in the shifting digital media landscape.

Gildan Activewear and the Quest for Value

Meanwhile, Stifel’s Martin Landry believes Gildan Activewear Inc. (GIL-T) has an appealing valuation, particularly following its recent acquisition of HanesBrands. With a target price maintained at US$75, he notes that the market has yet to fully appreciate the long-term earnings potential this deal could unlock.

Reassessing Canadian Apartment Properties