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FINWIRES

TSX up 6 Points at Midday, But With Most Sectors Lower

-- The Toronto Stock Exchange is up 6 points at midday, with most sectors lower.

The biggest decliners are healthcare (-5.0%) likely on some profit taking, and info tech, down 3.5%.

Industrials and utilities, up 2.2% and 1.4% respectively, are the best performers.

The U.S. Department of Justice has officially reclassified cannabis as less dangerous, moving licensed medical marijuana from Schedule I - which includes the most restricted drugs such as heroin and ecstasy - to Schedule III, the same category as some prescription medicines.

Reuters reports that cannabis firms will no longer be subject to Section 280E, a provision of the U.S. federal tax that prevents businesses dealing in Schedule I- and II-controlled substances from claiming tax credits and deductions for business expenses.

For its part, Tilray Brands (TLRY.TO), down 5.3%, says it is "positioned" for expansion in the U.S. as federal policy opens the door to rescheduling of cannabis from Schedule I to Schedule III.

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Research Alert: CFRA Keeps Buy Opinion On Shares Of The Hartford Insurance Group, Inc.

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Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Baker Hughes

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $14 to $82, reflecting a combination of our sum-of-the-parts (SOTP) and DCF models. For our SOTP model, we presume the oilfield services business (about 50% of BKR's franchise) to be valued at about 10x projected 2027 EBITDA (in line with major peers) and its industrial energy technology business (the other 50%) valued at 14x projected 2027 EBITDA (in line with the peer median). This blended approach, yielding a 12x multiple, implies a value of $73 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 5% per year, terminal growth of 2.5%, discounted at a WACC of 6.3%, yields intrinsic value of $91 per share. We cut our 2026 EPS estimate by $0.47 to $2.48, but we raise 2027's by $0.07 to $3.24. We acknowledge that the oilfield services business is likely to struggle in 2026 owing to the U.S.-Iran conflict, but the IET business appears quite robust and likely to be a source of both accelerating revenue growth and margins.

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Research

Research Alert: CFRA Maintains Hold Opinion In Shares Of Wab

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