Analysts at RBC Capital Markets and Desjardins raised their price targets on Calian Group Ltd. (CGY.TO) to $90 from $78, and to $90 from $83, respectively.
RBC analyst Paul Treiber maintained an Outperform rating on shares of the Canadian diverse products and services company following its quarterly results.
The stock rose $14.24, or 20.9%, to $82.24 on the Toronto Stock Exchange.
"Calian reported a solid quarter, with revenue, adj. EBITDA, and adj. EPS all above RBC/consensus," Treiber said in a note to clients.
"Organic growth strengthened and bookings were strong, primarily due to increasing demand from defence customers, along with a recovery in US commercial," the analyst said.
We believe acquisitions in the defence segment are potential catalysts for the stock," Treiber said.
Desjardins analyst Benoit Poirier maintained a Buy rating on Calian.
"This quarter marked an important inflection in CGY's defence business after months of newsflow and questions we are now actually starting to see tangible execution/bookings from increased budgets/ spending in both Canada and Europe," Poirier said in a note to clients.
"...With the stock now trading at a premium to its five-year average, potential acquisitions will become even more accretive," the analyst said.