
Analyst Updates: Key Upgrades and Downgrades You Can't Miss!
2025-05-20
Author: Sophie
Market Insights: Analyst Upgrades and Downgrades
In the rapidly shifting landscape of the market, today's analyst actions are creating significant ripples. Here's what you need to know!
Westshore Terminals Gets an Upgrade!
Following the surprising approval of the Grassy Mountain coal project, RBC Dominion Securities analyst Walter Spracklin has elevated Westshore Terminals Investment Corp. (WTE-T) from a 'Sector Perform' to an 'Outperform' rating. The approval signals a potential green light for a project initially halted due to environmental concerns.
Despite acknowledging the ongoing uncertainties, Spracklin believes the current stock price does not reflect this upside potential, especially given Westshore's strong free cash flow and zero debt.
Grassy Mountain's Promising Future
The Grassy Mountain project, which targets metallurgical (met) coal, is seen as a game-changer with a more favorable outlook than thermal coal. Spracklin projects that if the project moves forward, Westshore shares could see a dramatic re-rating.
His new price target for Westshore has surged to $30 from $23, aligned with the market average, indicating significant confidence in the company's trajectory.
Lithium Americas Faces a Downgrade
In contrast, National Bank Financial's Mohamed Sidibé downgraded Lithium Americas Corp. (LAC-T) from 'Outperform' to 'Sector Perform' following their recent announcement of a $100 million equity program. This move raised concerns about potential dilution and the financial outlook of the Thacker Pass project.
While the project remains strategically important, Sidibé is calling for greater clarity on funding and costs, having lowered his price target from $6.50 to $5.50.
Extendicare's Steady Portrait in Long-Term Care
Despite some disappointing first-quarter results, RBC analyst Pammi Bir sees potential in Extendicare Inc. (EXE-T). He believes the Canadian long-term care provider is strategically positioned to grow, especially after its recent acquisition.
With estimates of mid-to-high single-digit growth through 2026, Bir raised his target from $13.50 to $15, underlining confidence in the company’s improving operational performance.
InterRent REIT Shines Amid Market Challenges
Desjardins' Kyle Stanley has a positive outlook on InterRent Real Estate Investment Trust (IIP.UN-T), noting its focus on capital allocation is yielding results. Following a solid first quarter, he has raised his target from $11.50 to $14, reflecting engagement in proactive leasing and a steady occupancy rate.
The Metals Company Eyes a Bright Future in Deep-Sea Mining
H.C. Wainwright's Heiko Ihle is bullish on TMC the Metals Company Inc. (TMC-Q), giving it a 'Buy' rating due to its pioneering role in deep-sea mining. Recent governmental support points toward a robust future, with a price target set at $5.50. TMC is on the brink of significant regulatory milestones that could unlock its commercial operations.
Other Notable Analyst Adjustments
Jefferies upgraded Air Canada (AC-T) from 'Underperform' to 'Hold,' lifting the target to $18, while Bird Construction's target rose to $31 under a 'Buy' rating. Conversely, Exro Technologies (EXRO-T) suffered a target cut to 16 cents due to weak results.
In a market that's perpetually on the move, staying updated on these analyst adjustments can provide crucial insights into potential investment opportunities!