Why David Rosenberg isn't ready to call a market bottom, which TSX gold stock beat earnings-per-share estimates and more from The Week in Stocks.
Stock of the week: Allied Gold Corp.
Allied Gold Corp. (AAUC:TSX) closed out the week third among the top-10 highest percentage price increase performers on the S&P/TSX composite index . It gained 23 per cent after the miner updated its earnings outlook, eliminating uncertainty regarding production expectations, Mohamed Sidibe, an analyst at National Bank of Canada Capital Markets, said in a note on Nov. 5. Sidibe hiked his price target for Allied Gold to $40 from $37 and upgraded his rating to outperform from sector perform. Shares closed Friday at $32.54. For the third quarter, Allied said it beat estimates on earnings per share and realized gold price, while results were inline with estimates on gold sales and production. But, costs per ounce came in higher than expected. Production started at Allied's Kurmuk mine in Ethiopia and the company announced a "potential" dividend and share buyback program starting in 2027, Sidibe said. Allied has a 12-month price target of $44.77, based on the calls of six analysts.
Keeping score
Analysts peg these stocks as possible Budget 2026 winners
Ottawa's Budget 2026 , released Nov. 5, reinforced support for the federal government's new Defence Industrial Strategy, as well as a couple of stocks in Stifel Canada's "champions" portfolio, said Stifel analyst Greg MacDonald in a note on Nov. 5. Drone manufacturer Volatus Aerospace Inc. (FLT:TSX) is on track to benefit from the announcement of $2.3 billion over five years to purchase drones and drone systems for the Canadian Armed Forces, MacDonald said. Stifel has a $1 price target on Volatus. Shares closed Friday at 43.5 cents. The consensus price target for Volatus is 96 cents based on calls of seven analysts, according to Bloomberg. Ottawa's "dedicated funding for drone building" is a "clear positive" for Volatus, MacDonald said, adding that it has qualified to bid for every type of work under the new federal Drone Defence Initiative. The budget also earmarked $2.7 billion from previously announced funding for space, which could benefit Maritime Launch Services Inc., MacDonald said, adding that Maritime could be in line to benefit as Canadian manufacturers look to produce bigger rockets to help launch satellites into space. Canada has already funded smaller rockets and the launch pads they use, but MacDonald said the expectation is the Ottawa will also fund larger vehicles and their accompanying infrastructure. Stifel has a price target of 95 cents on Maritime. Shares closed Friday at 44.5 cents. Maritime has a price target of $1.39 based on the calls of four analysts, according to Bloomberg. Other potential defence initiative winners on Stifel's radar include Calian Group Ltd. (CGY:TSX), MDA Space Ltd. (MDA:TSX) and Telesat Canada (TSAT:TSX). Stifel said in its disclosure that it expects to receive banking service compensation from Volatus and Marimtime Launch Services. TD Cowen analyst Cheryl Zhang hiked her price target for North West Company Inc. (NWC:TSX) to $65 from $63 on budget proposals to raise grocery subsidies, spend $1.6 billion on Northern infrastructure and more than $50 billion on First Nations funding over five to 10 years. Shares closed Friday at $59.46.
Why it's too soon to declare a market bottom, per David Rosenberg
The stock market pullback on Nov. 5 — the S&P 500 index, down 4.4 per cent, the Nasdaq, minus 5.5 per cent — had some investors calling for a bottom as stocks rose Nov. 6. But David Rosenberg, president of Rosenberg Research & Associates Ltd., said it's too early to make that declaration. "I desperately want to believe we are getting to a capitulation buying point," Rosenberg said in a note on Nov. 6, but warned the catalysts just aren't there. In other major market routs that reversed course, catalysts included the U.S. Federal Reserve cutting rates in 2018, fiscal stimulus and Fed rates at zero per cent in 2020 and the spread of Open AI's ChatGPT, which ignited the AI investing boom. Today, even U.S. President Donald Trump can't rely on the TACO trade (Trump Always Chickens Out) to send markets soaring like he did when he retreated from the Liberation Day tariff, Rosenberg said. He added that the Fed won't come to the rescue of markets and currently the AI space is exhibiting excess capacity and overly optimistic expectations for return on investment. "The impact of the technology on productivity and society lingers, as was the case with the Internet, but investors who stay at the dance too long get most of their capital wiped out," Rosenberg said.
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Price target hikes and holds
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Raymond James analyst Michael Barth hiked his price target for Pembina Pipelines Corp. (PPL:TSX) to $76 from $75 on the view that the shares represent "good value" after a recent pullback of almost seven per cent. Shares closed Friday at $68.22.
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TD Cowen analyst Vince Valentini maintained his price target of $16 for Telus Corp. (T:TSX) on an "impressive" reduction in operating expenses. Shares closed Friday at $12.79.
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RBC Dominion Securities analyst Bart Dziarski hikes his price target for Great-West Lifeco. Inc. (GWO:TSX) to $94 from $91, partly on expected increased share buybacks in 2027. Shares closed Friday at $90.17.
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National Bank of Canada analyst Shane Nagle maintained his price target of $220 for Wheaton Precious Metals Corp. (WPM:TSX) on the miner's "high-quality, low-cost, long-life asset portfolio." Shares closed Friday at $193.01.
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CIBC Capital Markets analyst Krista Friesen hiked her price for Aecon Group Inc. (ARE:TSX) to $65 from $52 on its transformation into a "larger, more diversified infrastructure contractor." Shares closed Friday at $52.95.
Every week, the Financial Post breaks down the most interesting developments in the week's world of investing, from top performers to surprising analyst calls and stocks to have on your radar.
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