Research Alert: CFRA Upgrades View To Hold From Sell On Shares Of Toromont Industries Ltd.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our rating to Hold from Sell due to strong revenue growth and margin performance in Q1 without mining contributing. We lift our target to CAD224 from CAD166 based on averaging 16.0x our 2027 EV/EBITDA and a 26.0x P/E on our 2027 EPS. We raised our multiples due to fundamental resilience in top-line growth and Q1 margin strength without mining participating. We also view the commodity pricing environment to be longer lasting than initially, which should benefit TIH. While we expect mining orders to materialize, current valuations appear to have them priced in. Shares have been resilient in a turbulent period and trade at decade highs on an absolute basis. Yet, the seemingly long-term alteration of geopolitics has brought commodities into the spotlight, as well as Canada's sovereignty, as U.S. relations sour. Both should benefit TIH, and the recently announced Canada Strong Fund is an example of this sentiment. We lower our FY 26 EPS to CAD6.57 from CAD6.88 and raise FY 27 to CAD8.13 from CAD7.22.