Stock Market Insights: Analyst Upgrades and Downgrades

In the latest market analysis, Desjardins Securities analyst Benoit Poirier suggests Bombardier Inc. (BBD.B-T) is poised for a recovery, despite facing recent setbacks. Despite a drop of 9.4% in share price on Thursday, Bombardier reports an optimistic outlook, anticipating increased demand for private jets, improved profits, and revenue growth this year.

Poirier believes that the U.S. administration's recent concessions and compliance with USMCA will bolster Bombardier's business jet demand. "We foresee a book-to-bill ratio of at least 0.9 for the year," he stated, interpreting this as a good sign, as Gulfstream similarly views this ratio as achievable.

Bombardier unveiled its latest earnings, reporting a net income of $44 million and adjusted EBITDA of $248 million, reflecting a 19% revenue surge to $1.5 billion compared to last year.

Management Confident Yet Cautious

However, management has implemented a moratorium on stock buybacks for this year to prioritize debt repayment—targeting a reduction of $600 million by year-end to meet a leverage target of 2.0-2.5 times.

Despite lowering full-year earnings expectations through 2027, Poirier maintains a 'buy' rating, adjusting his target for Bombardier shares to $140, down from $142.

Other Analysts Weigh In on Bombardier

Further adjustments came from other analysts, including RBC's James McGarragle, who raised his target for Bombardier to $108, noting a positive demand outlook post-CUSMA compliance. BMO’s Fadi Chamoun adjusted his estimate to $130, emphasizing Bombardier’s consistent performance.

Canadian National Railway Faces Uncertainty

In rail transport, Canadian National Railway Co. (CNR-T) has shown better-than-expected results but remains under scrutiny. Analyst Chris Murray from ATB Capital Markets is cautious about its near-term outlook amid uncertainties in international freight. While Q1 results reflect a revenue increase of 3.6% year-over-year, he anticipates weaker intermodal volumes due to recent tariff impacts.

Thomson Reuters: A Steady Performer

Meanwhile, Thomson Reuters Corp. (TRI-N, TRI-T) is maintaining momentum with solid Q1 results, exceeding expectations amid market turbulence. Analyst Drew McReynolds believes increased organic revenue growth and resilient earnings position Thomson Reuters as a robust investment.

Aritzia's Growth and Tariff Challenges

Aritzia Inc. (ATZ-T) showcased impressive growth with a 31% revenue increase in its latest quarter, yet analysts are wary of the looming tariff battle's impact on future EBIT margins. Analyst Martin Landry emphasizes a cautious outlook, despite expectations for progressive sales growth.

Tariffs Weigh on Spin Master Corp.

Finally, Spin Master Corp. (TOY-T) faces uncertain prospects amid the global tariff battle, with analysts highlighting that its share price remains at a five-year low. Citing better-than-expected Q1 results, Stifel's Martin Landry notes that tariff implications have led to the withdrawal of revenue and margin guidance, resulting in a reevaluation of the company's future performance.

In conclusion, while some companies like Bombardier and Thomson Reuters display potential for recovery and growth, others are experiencing significant challenges driven by external factors such as tariffs and market volatility. Investors must navigate these dynamics carefully.