CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target to CAD150 from CAD133, based on a P/E of 21.9x our 2027 EPS view vs. the peer average of 20.2x. We increase our 2026 EPS by $0.10 to $4.45 and 2027's by $0.30 to $5.02. We think Q1 results provide the tangible evidence needed to move off the sidelines, directly mitigating the competitive AI risks that underpinned our previous cautious stance. Management's fiduciary-grade AI framework offers a more compelling defense of its moat, and this narrative is now supported by accelerating top-line momentum, with the core Legal segment (ex-Govt) growing 11%. While execution risk on the H2 2026 margin expansion target and subdued government segment growth remain primary concerns, these are well-cushioned by the company's fortress balance sheet (0.8x net leverage) and substantial capital capacity ($9B+ through 2028). With the market having priced in significant erosion (shares down 28% YTD), we believe the disconnect provides better downside protection and supports a more favorable risk-reward profile.