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CIBC in its Q1 Canadian Telecom Earnings Recap Says Quebecor Remains its "Top Pick" Post Quarter

CIBC Capital Markets provided its first-quarter Canadian Telecom Earnings Recap in a note dated May 15 and said its "top pick" following first-quarter remains Quebecor (QBR-A.TO, QBR-B.TO).Among the Canadian telecoms, Q1 revenue and adj. EBITDA came "roughly in line" with consensus, said CIBC. Core telecom margins were up an average of 30 basis points in Q1 and CIBC continues to expect a focus on efficiency in a lower-growth telecom environment.In wireless, average revenue per user (ARPU) declines continue to moderate with wireless service revenue growth of 22 bps at the Big 3, but up 9% at Quebecor, driven by subscriber and APRU growth, stated CIBC.In internet, CIBC noted Telus (T.TO) and BCE (BCE.TO) took the "highest share of net adds", with all companies in its coverage continuing to focus on out-of-footprint expansion via TPIA and/or FW.Competitive pricing escalated through Q1, with flanker brands reducing low-tier prices to ~$25 late in the quarter, said CIBC and added that average Q1 ARPU was down 92 bps Y/Y, an improvement from a 121 bps decline in Q4.Quebecor recorded its second consecutive quarter of ARPU growth (+1.4%), the only Canadian telecom to see ARPU growth after multiyear industry declines, noted CIBC.It further noted that immigration remains a headwind, with industry mobile net additions down 26% Y/Y in the quarter."Q1 equipment revenue dropped 3% across the Big 3, which we view as a healthy barometer of a moderating device subsidy environment, consistent with lower subsidy rates observed in our channel checks," said CIBC. "We observe pricing stabilizing post-Q1, with flagship and flanker pricing up 5% and 3% Y/Y, respectively. Rogers (42%) took the highest share of industry wireless net additions in Q1, followed by Quebecor (37%), TELUS (15%) and BCE (6%)."Telus (44%) and BCE (29%) took the highest share of internet net additions this quarter, noted CIBC, driven by a combination of increased penetration in footprint as well as out-of-footprint expansion in the east (Telus) and in the west (BCE).Quebecor reported its third consecutive quarter of internet revenue growth (+3.2%), added CIBC."All companies within our coverage are exploring out-of-footprint expansion to some degree," said CIBC. "We expect out-of-footprint expansion via TPIA to be a growth opportunity, but to come at a lower margin vs. the owner economics in footprint."Deleveraging remains a focus for the sector, noted CIBC, with average leverage of 3.4x at the end of Q1."BCE and TELUS reiterated their deleveraging targets (3.5x and 3.0x by the end of 2027, respectively), said CIBC. "Rogers reduced its F2026 capex guidance by ~24% at the midpoint, with the savings flowing to FCF."CIBC expects Rogers to use the additional FCF to accelerate deleveraging. Quebecor continues to have the lowest leverage among the telecoms at 2.86x, added CIBC.Price: $49.23, Change: $+0.65, Percent Change: +1.34%

Research Alert: CFRA Initiates Coverage On Northland Power Inc. On Growth Trajectory

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We initiate Northland at Buy (4-STARS), which reflects our bullish view on the company amid the dramatic need for energy and NPI's largely alternative production across the globe. With plans to double its 3.5 GW capacity to 7.0 GW by 2030, the earnings growth potential is substantial. Our target price of CAD26 is derived from a 7.8x forward EBITDA multiple applied to the FY 27 estimate. The growth story comes at the cost of a dividend cut, capital recycling, and significant project risk. However, projects are currently on track to meet their latest deadlines, and the Q1 2026 fundamental performance and guidance strengthened management's case that no further bearish revisions are needed to execute its plans. Shares trade at a historical discount versus peers and the company's own historical averages, as the market waits to see whether the Hai Long and Baltic projects can generate cash flows on time. Our FY 26 adjusted EPS estimate is CAD1.24, and our FY 27 estimate is CAD1.41.

$NPI

Oil & Energy52d ago

Trump Says Gulf Allies Push Iran Talks as US Seeks Nuclear Deal

US President Donald Trump on Tuesday said Middle Eastern allies are pushing for continued negotiations with Iran as the US seeks to block Tehran's nuclear ambitions.Trump made the remarks while interacting with reporters during a visit to the ballroom construction site."We have to make sure that Iran doesn't get a nuclear weapon," Trump said, adding that the US may deliver "another big hit" if negotiations collapse.Trump said Gulf countries recently contacted the White House and told him they had "made a lot of progress" in ongoing talks with Tehran.He added that Saudi Arabia, Qatar, UAE, Kuwait and Bahrain are helping negotiate with Iran. "We're all working together," Trump said, adding that they were working as a team along with Israel.Trump said recent strikes severely weakened Iran's military, adding "their missiles are 82% gone," while much of the country's naval and air force capacity has also been destroyed."One way or the other, whether it's military or an agreement," Trump said, noting that the issue will be resolved soon."President Xi has promised me that he's not sending any weapons to Iran," Trump said, while adding that China wants the Strait of Hormuz to remain open because it receives 40% of its oil through the route.Trump said Iran has treated the Strait of Hormuz as a geopolitical weapon for decades, adding, "I want it open, and we'll get it open."The US President said gasoline prices could rise temporarily during the conflict, although the administration remains focused on preventing Iran from obtaining nuclear weapons.Growing oil shipments from Texas, Louisiana and Alaska should help stabilize energy supplies, adding "there is so much oil out there," Trump said."I thought the market would go down 25% and I was okay with that," Trump said, adding that preventing a "nuclear holocaust" outweighed market concerns.

Update: Market Chatter: NATO Discussing Hormuz Deployment to Help Guide Ships

(Updates with NATO's response to a request for comment.)The North Atlantic Treaty Organization is considering helping ships pass through the Strait of Hormuz if it doesn't get unblocked by early July, Bloomberg reported Tuesday, citing a senior official in the military alliance.Several members of NATO support the idea, but it doesn't have the necessary unanimous support yet, the report said, citing a diplomat from a NATO country."As the Secretary General noted last week in Bucharest, it is important that the Strait is open, and there are initiatives, including from the United States as well as through the coalition led by France and the UK, to support freedom of navigation in the Strait of Hormuz," a NATO official toldvia email. "That said, as SACEUR also made clear this afternoon, there is no planning underway for a NATO mission."(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

National Bank on April Airfares

National Bank notes the air transportation component of Canadian CPI data for April edged down 1.7% after posting a 2.9% increase in March, the first irise since June 2024.April fares were down 3.6% from March.The decline is surprising, given Canadian airlines implemented fuel surcharges on most routes with Air Canada (AC.TO) reporting, despite the higher fares, demand has not declined, writes analyst Cameron Doerksen."However, we note that fuel surcharges have been more aggressive on international routes, and we believe the StatCan survey is more weighted to domestic routes which could partially explain why April data did not come in stronger," Doerksen adds.He expects fares for Air Canada and Transat A.T. (TRZ.TO) to be higher in the short term with Air Canada also noting at the time of its first-quarter results that it was booking forward yields in the mid-teen percentages y/y. However, the longer high fuel prices persist, the more risk there is that higher airfares will lead to some demand destruction, Doerksen says.Air Canada is rated sector perform with a $22.00 price target on its shares. Transat is also rated sector perform with a $3.00 price target on its shares.Price: $18.79, Change: $-0.39, Percent Change: -2.03%

$AC.TO$TRZ.TO

Sector Update: Healthcare

Healthcare stocks rose Tuesday afternoon, with the NYSE Healthcare Index and the State Street Healthcare Select Sector SPDR ETF (XLV) each adding 1.1%.The iShares Biotechnology ETF (IBB) increased 0.6%.In corporate news, Boston Scientific (BSX) shares gained nearly 1% after it said Tuesday that a trial evaluating its investigational catheter for treating severe coronary artery disease met primary safety and effectiveness endpoints.

$BSX

Oil & Energy52d ago

EMEA Oil Update: Crude Falls After Trump Called Off Iran Strike

EMEA crude futures dropped in after-hours trading on Tuesday after President Trump said he would postpone a planned military strike on Iran following requests from Middle Eastern leaders, a decision that eased fears of an imminent supply disruption.Brent crude futures slipped by 1.01% to $110.98 per barrel, while Murban oil futures were down 1.79% to $106.35/bbl."The oil market continues to trade in wide ranges, and it remains extremely sensitive to Iran-related headlines amid current supply disruptions," ING strategists said in a note Tuesday.On Tuesday, Trump called off a planned attack on Iran after the heads of three regional powers in the Middle East asked him to "hold off."The US President told reporters on Tuesday that he was "an hour away" from deciding whether to attack Iran before he was convinced to postpone the strike for a few days."What seems to be a pattern is that Trump states something like "very good negotiations going on with Iran", "New leaders in Iran are great", "Great progress in negotiations", "Deal in sight", etc whenever the Brent M1 contract trades above $110/bbl," Bjarne Schieldrop, chief commodities analyst at SEB Research, said, noting that this is an effort to cool the market.Fueling bearish sentiment, NATO is reportedly considering helping vessels pass through the Strait of Hormuz if the strategic waterway isn't reopened by early July.Though a fragile ceasefire was reached in April, tensions between Iran and the US continue, with Tehran keeping the Hormuz closed, while Washington continues to blockade Iranian ports.The US Navy has redirected 88 Iran-linked commercial vessels and disabled four others since imposing the blockade on April 13, the US Central Command said in a social media post on Tuesday.Iran unveiled a new body, the Persian Gulf Strait Affairs Authority, on Monday to oversee activities related to the Strait of Hormuz. The agency said it would issue guidance to vessels transiting the waterway, including emails outlining passage rules and regulations.Saxo Bank strategist said traffic via the Strait remains only a fraction of pre-war levels, despite the waterway accounting for about one-fifth of global oil supply.Meanwhile, the US sanctioned over 50 entities, including oil and gas tankers as well as an Iranian foreign currency exchange, in its continued bid to get Tehran to agree to a deal and reopen the Hormuz.On the supply front, the US extended a sanctions waiver allowing purchases of Russian seaborne oil for another 30 days on Monday to support vulnerable countries while the US works on issuing more specific licenses where required.The measure is intended to help stabilize physical crude markets and ensure oil supplies continue to reach countries facing acute energy security risks, Treasury Secretary Scott Bessent said in a social media post.

Sector Update: Tech

Tech stocks were mixed Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) fractionally lower and the State Street SPDR S&P Semiconductor ETF (XSD) rising 1.1%.The Philadelphia Semiconductor index added 1%.In corporate news, Meta (META) is moving 7,000 employees into new AI-focused roles as part of a broader restructuring that also includes planned job cuts later this week, Bloomberg reported Monday. The workers will be reassigned to teams focused on AI products, including agents and apps, according to the memo from Chief People Officer Janelle Gale reviewed by Bloomberg. Meta shares were down 1.1%.

$META

Aduro Clean Technologies to List on the Toronto Stock Exchange

Aduro Clean Technologies (ACT.CN) received conditional approval to list its shares on the Toronto Stock Exchange (TSX) under the symbol "ACT", it said on Tuesday.Final approval of the listing remains subject to the company fulfilling all the needs of the TSX, including receipt of all required documentation, it said.The company expects to delist its shares from the Canadian Securities Exchange (CSE) in connection with the TSX listing.Shares of the company were last seen down $0.68 to $18.24 on the CSE.Price: $18.24, Change: $-0.68, Percent Change: -3.59%

$ACT.CN

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Nextera Energy, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We have a negative-leaning view on NEE's announced merger with Dominion Energy (D) as we expect regulatory approval to be a challenging endeavor. We see material risk of triggering the $4.83B breakup fee to be paid by NEE to D upon failure to achieve regulatory approval. Washington Analysis, CFRA's policy research group, notes particular scrutiny to come from Virginia policymakers and expects additional pushback from South Carolina. North Carolina is likely to be a bit more supportive. We expect $2.25B in bill credits for D customers to nudge forward the odds of approval, but other actions (such as asset sales) may be needed to get the deal across the line. In our opinion, there are real merits to the deal rationale, but execution risk is notable and direct financial boosts are relatively moderate. We keep our 12-month target at $106, 25.8x our next-12-month EPS estimate, above peers and NEE's five-year average forward P/E of 24.4x. Our 2026 and 2027 EPS estimates are kept at $4.13 and $4.50, respectively.

$NEE

Sector Update: Consumer

Consumer stocks were mixed Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) falling 1.2%.In corporate news, Home Depot (HD) on Tuesday reported fiscal Q1 results above market expectations despite consumer uncertainty, while the home improvement retailer reiterated its full-year outlook. Its shares rose 0.5%.

$HD

Commodities52d ago

EMEA Natural Gas Update: Futures Rise on Reduced LNG Supply, Middle East Uncertainty

European natural gas futures climbed in after-hours trading on Tuesday as tightening supply conditions and geopolitical uncertainty in the Middle East supported prices.The front-month Dutch TTF contract rose 3.532% to 52.025 euros ($60.38) per megawatt hour, while the UK front-month NBP contract gained 3.155% to 127.19 British pence ($1.70) per therm.The widening gap between the US and Iran has increased concerns that any resolution to the Middle East conflict and the related disruptions to energy flows remain distant. Some of the immediate concerns were muted late Monday after US President Donald Trump said he had called off a military strike on Iran.Near-term demand may get a boost from the weather. Atmospheric G2 said Europe is experiencing its first major heatwave of the season, unusually strong for this time of year, with rising air-conditioning demand and elevated river temperatures raising operational concerns for France's nuclear fleet.Meanwhile, Gas Infrastructure Europe data showed EU gas storage remained well below last year's level. Stocks stood at 36.56% full on Tuesday, down from 44.71% a year earlier, underscoring the continued need for injections ahead of winter.LNG flows to Europe have reduced since the onset of the trouble in the Middle East. Vortexa said Europe's LNG inflows have been constrained by narrow price spreads between the Northwest Europe LNG benchmarks and the TTF hub, as well as seasonal demand weakness. The firm noted that LNG demand across Europe remained subdued last week as warmer weather reduced heating needs and low margins discouraged imports.Across the EU, LNG consumption averaged about 4,000 gigawatt-hours per day, around 5% below recent monthly averages, while imports totaled 2.2 million metric tons across 37 cargoes, broadly stable versus recent weeks, Vortexa said.The analytics firm added that France's LNG intake was steady overall, with higher deliveries into Dunkirk offsetting maintenance-related outages at the Montoir terminal. In the UK, imports returned closer to seasonal norms as cooler conditions and replenishment of storage needs lifted demand.Italy's LNG imports fell roughly 30% below recent averages, as forecasts for wetter conditions are expected to boost hydropower output and reduce gas-fired electricity generation. Turkey, meanwhile, recorded no LNG imports last week as persistently warm temperatures continued to suppress domestic gas consumption.ANZ analyst Daniel Hynes said ship-tracking data show total LNG arrivals in Europe fell further in the first half of May after a 7% year-on-year drop in April volumes. He added that cargoes are increasingly being redirected toward Asia, where supply constraints linked to Middle East tensions are more acute.He also pointed to potential additional supply risks from Australia, where workers at Inpex's Ichthys LNG project are preparing for strikes and work stoppages next week, raising the prospect of further global production disruptions. Taiwan and Japan each rely on the facility for roughly 8% of their LNG imports.

Research Alert: CFRA Keeps Buy Rating On Shares Of Amgen Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target price from $398 to $380, based on 16.4x our 2027 EPS estimate, above AMGN's 10-year historical forward average of 14.1x. We cut our 2026 EPS view to $22.45 from $22.56. We keep our 2027 EPS at $23.23. Based on various media reports, AMGN's rare disease drug Tavneos, used to treat ANCA-associated vasculitis in adults, an autoimmune condition where the immune system attacks small blood vessels, has been allegedly linked to 20 deaths in Japan since 2022. On April 27, the U.S. FDA proposed withdrawing the drug's approval, which was granted in 2021, due to concerns over its safety profile and initially disclosed study data. With $119M in global sales in Q1 2026, Tavneos made a very small portion (1.4%) of AMGN's quarterly revenue of $8.62B. Therefore, should AMGN decide to withdraw the drug from the market, we think the financial impact would be manageable. Tavneos entered AMGN's portfolio via the $3.7B acquisition of ChemoCentryx in 2022.

$AMGN

Research Alert: CFRA Lowers Rating On Shares Of Regeneron Pharmaceuticals, Inc To Hold From Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Shares of Regeneron are down more than 10% today after the company announced on Friday evening, after market close, that the Phase 3 study of fianlimab did not achieve a statistically significant primary endpoint in progression-free survival (PFS). The advanced clinical trials were assessing fianlimab in combination with cemiplimab (PD-1 inhibitor) for first-line unresectable or metastatic melanoma, a skin cancer that has spread beyond its original location versus pembrolizumab (PD-1 inhibitor), which is Merck's blockbuster oncology drug, Keytruda. While the company aims to present detailed data at an upcoming medical meeting, the release reflects diminished prospects for what had been anticipated as a highly promising treatment with a blockbuster potential, in our view. We lower our target price to $650 from $846, based on 12.4x our 2027 EPS estimate, a discount to REGN's 10-year historical forward P/E average. We retain our 2026 EPS estimate at $45.59 and our 2027 EPS estimate at $52.62.

$REGN

US Markets52d ago

Salesforce Likely to Meet Muted Quarterly Views Amid 'Tenuous' SaaS Backdrop, Deutsche Bank Says

Salesforce's (CRM) fiscal first-quarter results are expected to meet relatively modest projections amid a "tenuous" environment for the software-as-a-service industry, Deutsche Bank said Tuesday.The customer relationship management platform is scheduled to report results May 27. The current consensus on FactSet is for non-GAAP earnings of $3.13 a share on sales of $11.05 billion for the three-month period."We expect Salesforce to report a seasonally slow but steady start to (fiscal 2027), with results likely meeting muted expectations amidst a tenuous backdrop for SaaS," Deutsche Bank analyst Brad Zelnick said in a note to clients Tuesday.The brokerage's insights suggest less upside in the company's key metrics versus recent quarters. "Accordingly, we think (the first quarter) is unlikely to result in any meaningful estimate revisions, which we believe is required to sway sentiment and catalyze the stock," Zelnick wrote.Salesforce shares were little changed in Tuesday afternoon trade. So far this year, the stock has lost 32% in value.Commentary on the company's net new annual order value growth trajectory and incremental gains on its Agentforce artificial intelligence-powered agent platform will be a main area of focus, after being "disappointed" with the exclusion of any new leading metrics in its go-forward disclosure update intra-quarter, Zelnick said.The risk/reward "leans favorably," with Salesforce's shares having underperformed the iShares expanded tech-software sector exchange traded fund by about 21% since it posted its last financial results, with fiscal 2027 set for a second-half acceleration, according to Deutsche Bank.However, Salesforce's depressed valuation reflects long-term uncertainties surrounding AI and potentially limiting the stock's outperformance in the short term, barring "substantial estimate revisions," Zelnick said."We tend to believe AI-related concerns underappreciate the opportunity for software companies to adapt to new paradigms, in addition to the timeline over which any disruption might occur," the analyst wrote.Price: $180.48, Change: $+1.00, Percent Change: +0.55%

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Wire52d ago

Market Chatter: Blackstone Exits Investor Group Exploring Stroeer Takeover

Blackstone (BX) dropped out of a consortium exploring a takeover of German media group Stroeer, Bloomberg reported Tuesday, citing people familiar with the matter.The investor group, which includes I Squared, was mulling a 2.5 billion euro ($2.9 billion) bid, the report said.I Squared is reviewing its strategy, and there is no certainty that the consortium will proceed with an offer, the report said.Blackstone did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $115.74, Change: $-1.30, Percent Change: -1.11%

$BX