Why tax-loss selling could be critical for investors this year, how the rising value of two Canadian NHL teams could translate to wins for these stocks plus five companies that got a price target increase this week. The Financial Post explores those stories and more in The Week in Stocks.

Stock of the week: Advanced Micro Devices Inc.

Shares of

Advanced Micro Devices Inc.

(Nasdaq:AMD) leapt out of the gate earlier this week, climbing just over 43 per cent over three days after it said it had inked a deal with Open AI to build infrastructure for artificial intelligence. Though the stock had pared some of those gains by week’s end, partly due to Friday’s flare-up in U.S.-China trade tensions, analysts were scrambling to raise their target prices for the chipmaker. Analysts at TD Cowen hiked their target to US$270 from US$195, calling the deal “a significant financial and technical milestone,” while those at Morgan Stanley and Goldman Sachs Group Inc. raised their price targets to US$246 from US$168 and to US$210 from US$150, respectively. The stock is currently trading around the US$220 level.

Keeping score

It’s a wonderful time for tax-loss selling

If Costco can flog its Christmas wares even with Halloween still a month away, then there’s a case to be made for investors to put

tax-loss selling

on their radars. Analysts Sid Mokhtari and Michael Petipas at CIBC Capital Markets just issued a preliminary report in advance of their regular tax-loss report in November noting that the practice of selling losing holdings to offset capital gains will be especially important this year given the scope and breadth of gains on the S&P/TSX Composite index. “Selling may become even more relevant in 2025, with more capital gains potentially available to offset through harvesting strategies,” the pair said in their report. How to identify tax-loss selling candidates? “

In previous years, our reports have highlighted that stocks with declines of 20 per cent or more from their 52-week high and negative year-to-date returns to Oct. 15,”

Mokhtari and Petipas said. In the report, they identify 32 TSX-listed stocks on their tax-loss watch list. Among some of the names are CGI Inc. (TSX:GIB/A) and Constellation Software Inc. (TSX:CSU). Most tax-loss selling occurs between mid-November and December and transactions must be completed by Dec. 30.

How Rogers and BCE can win with the Leafs and Canadiens

The

Toronto Maple Leafs

and the Montreal Canadiens were recently ranked the first and third-most valuable

National Hockey League

teams and that could translate into wins for

Rogers Communications Inc.

(TSX:RCI/B) and

BCE Inc.

(TSX:BCE). “We believe Rogers and BCE shares stand to benefit from monetization over the next year,” analysts at TD Securities said in a note. The outlet Sportico, which looks at the business of sport, said the Leafs are now worth US$4.25 billion, up 16 per cent from 2024, while it valued the Canadiens at US$3.3 billion, up 13 per cent. The trio at TD of Vince Valentini, Natale Puccia and Carter Sullivan, who previously recommended Rogers as a buy based on an earlier Forbes valuation of the Leafs of US$3.8 billion, think the Sportico estimate could add about $17 per share. They estimate that BCE’s 20 per cent holding in the Canadiens is worth about US$900 million. The analysts have a price target for Rogers of $58. Shares are currently trading around $51. They have a price target of $35 for shares of BCE, which are trading at the $33 level.

The critical minerals trade is here to stay

“We believe that it is vital to always have exposure to investment themes that are of strategic importance and represent national security issues,” and that’s where

rare and critical minerals

and metals come into play, said David Rosenberg, founder of Rosenberg Research and Associates Inc., in a recent newsletter. In an updated note on rare earths, Rosenberg said these materials enjoy a “price floor” that no other traditional commodity market has, given that China controls 70 per cent of global mining activity and even larger shares of processing and refining capacity. The sector is key to areas such as electric vehicles, aircraft engines and military and electronic applications. “On the demand side, one can reasonably expect an explosion going forward, primarily from clean energy transitions (wind power in particular) and defence budget expansions, which rely heavily on government support,” Rosenberg said. Governments around the world have already committed more than US$60 billion to rare earth development. On the investing front, Rosenberg recommends the VanEck Rare Earth and Strategic Metals ETF (NYSE:REMX). Energy Fuels Inc. (NYSE:UUUU), which produces uranium and vanadium, is another option, as is mining company Ucore Rare Metals Inc. (TSX/V:UCU).

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Some price target upgrades

  • TD Securities analyst Mario Mendonca upgraded Sun Life Financial Inc. (TSX:SLF) to a buy from a hold and boosted his price target to $101 from $89 on an attractive valuation when compared to peers and the big banks. Mendonca noted Sun Life is using its “robust excess capital position” to buy back shares. Sun Life is currently trading at the $86 level.
  • BMO Capital Markets upgraded its price target for Torex Gold Resources (TSX:TXG) to $80 from a previous target of $62 now that Torex has closed its deal to buy Prime Mining. The stock is currently trading around the $60 level. Analyst Kevin O’Halloran said the deal will give Torex the “ability to leverage its project development/mine building expertise in Mexico.”
  • National Bank of Canada analysts upgraded their price target for 5N Plus Inc. (TSX:VNP), a supplier of metals for electronic purposes, to $21 from $17 on the notion that it will raise its guidance in the third quarter and that the Quebec company has $100 million for mergers and acquisitions. The stock is currently trading around the $18 level.
  • CIBC Capital Markets upgraded its price target for Bombardier Inc. (TSX:BBD/B) to $222 from $181 on “positive demand trends,” though analysts identified risks to the upgrade, including a drop in selling prices and lower than expected deliveries and orders. Bombardier shares were trading at $190 on Friday.
  • BMO also upgraded the price target for Aritizia Inc. (TSX:ATZ) to $104 from $100. The stock is currently trading at the $86 level. BMO analyst Stephen MacLeod described the retailer’s second quarter earnings beat as “solid” and said the Montreal-based company is set up to make the most of its “significant” opportunities in the U.S.

• Email: gmvsuhanic@postmedia.com

Every week, the Financial Post breaks down the most interesting developments in the week’s world of investing, from top performers to surprising analyst calls and stocks to have on your radar. 

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