Why silver, gold’s less flashy sibling, was in the spotlight recently and how the timing couldn’t have been better for this TSX-listed miner. A promising stock as RBC Capital Markets revisits its small-cap favourites list. And is the case for uranium justified? The Financial Post explores those stories and more in The Week in Stocks.

Stock of the week: Celestica Inc.

Shares of top S&P/TSX Composite index performer

Celestica Inc.

(TSX:CLS) rose 13.8 per cent this week and are up just over 190 per cent on the year with several analysts think the gains will keep rolling in. The company provides artificial intelligence services to a variety of businesses, including as a manufacturing and supply partner to

Broadcom Inc.

(NYSE:AVGO). Celectica is expected to benefit from a deal this week between OpenAI and Broadcom. BMO Capital Markets raised its price target for Celestica to $420 from $318 on the assessment that it will be a “key beneficiary” of the Broadcom-OpenAI deal. Shares of Celestica were trading Friday just under the $390 level. BMO analyst Thanos Moschopoulos said he thinks Celestica deserves a “premium multiple” based on “customer exposure and market position, and the potential for further upside to our estimates.” Celestica has a price-to-earnings ratio of 62.3, according to Bloomberg.

Keeping score

Gold’s less flashy sibling in the spotlight

Gold

‘s more modest sibling,

silver

, hit a record recently when it pushed past US$50 an ounce. That proved to be perfect timing for Endeavour Silver Corp. (TSX:EDR). Year to date, the stock is up nearly 140 per cent. This week, it gained nearly 20 per cent and was top the top gainer on the TSX  with several analysts lifting their price targets after the Vancouver-based company announced that it was starting production at its Terronera mine in Mexico. “Over the next six months, Terronera is expected to process 360 (kilotonnes), which aligns with our forecast, with grades rising mid-2026 as high-grade zones are accessed,” Kevin O’Halloran, metals and mining analyst at BMO Capital Markets, said in a note. He raised his price target to $15 from $13. Shares were trading Friday just under that level. National Bank Capital Markets analyst Alex Terentiew also raised his price target to $19 from $16 on the belief that Endeavour’s shares “will react positively” to the opening of the company’s “flagship” mine.

Some small-cap love

With the third quarter in the rear-view mirror, RBC Capital Markets reviewed the 18 companies included in its small-cap conviction list. The list, with names such as

Cineplex Inc.

(TSX:CGX),

Jamieson Wellness Inc.

(TSX:JWEL), Pet Valu Holdings Ltd. (TSX:PET),

MDA Space Ltd.

(TSX:MDA)

 

and others in the energy, REIT, mining and artificial intelligence sectors, had a total return of 5.5 per cent quarter to date compared with a total return of 6.5 per cent for the S&P/TSX Small Cap total return index and 4.2 per cent for the S&P/TSX Composite index. Excluding the resource shares, RBC’s small-cap list rose 8.2 per cent. Sector analysts weighed in on each of the stocks and what could drive them to further gains. But we’ll just take a look at one here. AI has been the propellant for markets and companies associated with the sector and Coveo Solutions Inc. (TSX:CVO) is no exception, RBC analyst Peter Treiber said in the report. The Quebec City-based company provides AI services to online retailers. “Coveo is seeing strong momentum in the commerce vertical, fuelled by partnerships with SAP (SE), Shopify (Inc.), and Salesforce (Inc.),” Treiber said, adding that “additional high-profile customer wins in commerce are likely catalysts for the stock, in our view.” RBC has a price target for Coveo of $12. The shares are currently trading just under the $8 level.

Uranium not just a mining stock anymore

TD Cowen held its 10th annual nuclear conference. One of the themes to emerge from the event was that

uranium

is attracting more general market players who view it as important in the areas of artificial intelligence, data centres and the growing movement to build small modular reactors (SMRs). Ontario earlier this year approved the construction of four SMRs. “Uranium and nuclear ETFs are now attracting more capital than clean energy ETFs, signalling a significant shift in investor sentiment,” TD analyst Craig Hutchison and his team said in a note. With uranium supply tight on a couple of fronts, TD said there is scope for prices and earnings to rise. The analysts think GE Vernova Inc. (NYSE:GEV),

Cameco Corp.

(TSX:CCO) and

AtkinsRealis Group Inc.

(TSX:ATRL) could benefit the most from nuclear’s “resurgence,” with uranium obviously playing a key role.

Price target upgrades and a downgrade

  • RBC Capital Markets analyst Greg Pardy raised his price target for Strathcona Resources Ltd. to $40 from $36 in the wake of the company ending its bid for MEG Energy Corp. (TSX:MEG) just ahead of the Thanksgiving weekend. Pardy likes how Strathcona “pivoted” quickly after pulling out of the race for MEG, he said in a note. However, National Bank Capital Markets analyst Travis Wood downgraded Strathcona to sector perform from outperform and cut the shares’ price target to $38 from $42 based on higher debt levels and a “compressed” free cash flow outlook. Strathcona was trading around the $36 level.
  • Analysts at BMO Capital Markets raised their price target for shares of Bombardier Inc. (TSX:BBD/B) to $225 from $190 on the belief that the private-jet maker’s valuation has room to grow. The shares are currently trading around $195.
  • TD analyst Vince Valentini hiked his price target for BCE Inc. (TSX:BCE) to $37 from $35 and upgraded the shares to buy from hold. Shares are currently trading at the $33 level. “BCE is not a top pick, but we believe it has a better growth and balance-sheet trajectory than what we have seen for a few years,” Valentini said.
  • Phil Hardie, an analyst at Scotiabank Capital Markets hiked his price target for IGM Financial Inc. (TSX:IGM) to $64 from $57. Shares of IGM are currently trading at $54 level. IGM owns stakes in several companies including Wealthsimple Inc. and Great-West Lifeco Inc. “We continue to believe IGM’s portfolio of strategic investments is not fully reflected in its stock price and represents a source of overlooked value,” Hardie said in a note.
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  • These 5 TSX stocks had their target prices hiked by analysts, though one comes with some risk

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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