This TSX darling rose 120% in 2025, and analysts are hiking their price targets again

RBC’s Top 30 investment ideas list gets a makeover, why Canada’s Big Banks are a stabilizer if tech euphoria fades and why Canadian lifecos may not be getting enough credit for return on equity expansion. The Financial Post explores those stories and more in The Week in Stocks. 

Stock of the week: Artizia Inc.

Analysts were busy hiking their price targets for

Aritizia Inc.

(ATZ:TSX) after the retail darling, whose stock rose 120 per cent in 2025, reported revenue of $1.04 billion for the third quarter on Thursday on growing same-store sales, more new stores and a new mobile app. Stephen MacLeod, a retail and consumer analyst at BMO Capital Markets, hiked his price target to $155 from $136 citing the quarter’s “strong beat” and increase to margin guidance for 2026 in the face of headwinds from tariffs and the end of the de minimis rule, which allowed for parcels worth less than US$800 to be shipped into the United States duty-free. “Aritzia appears well-positioned to execute on its significant U.S. growth opportunity, reflecting its strong momentum, growing brand affinity and everyday luxury positioning,” MacLeod said in a note. Irene Nattel, an analyst at RBC Capital Markets hiked her price target for Aritizia on Friday to $150 from $116 after increasing it four times in 2025. Shares of Aritizia traded at $131.47 and were up just over 12 per cent on the week. Raymond James Inc. analysts Michael Glen and Fred Gatali hiked their price target twice this week, first to $130 from $110 pre-earnings and then to $155 on Friday. The average 12-month target is $150.38 based on the estimates of 13 analysts, according to Bloomberg.

Keeping score

RBC swaps some names in its ‘high conviction’ list

RBC Capital Markets has refreshed its Top 30 ideas list of “high-conviction” investing names from around the world. Graeme Pearson and Mark Odendahl, co-heads of global research at RBC, swapped in 11 new names. Among the additions are Airbnb Inc. (ABNB:Nasdaq), Amazon.com Inc. (AMZN/Nasdaq), Shopify Inc. (SHOP:Nasdaq) and Visa Inc. (V:NYSE). The pair like Airbnb for its move into hotels and that it is a defensive play against

artificial intelligence

. Amazon made the grade because it offers leading “visibility” on return on invested capital in AI infrastructure. Investors have recently grown wary of capital spending among some of the

big tech

players in the AI space without any signs yet that investment will pay off. Pearson and Odendahl added Shopify on expectations the Ottawa company will continue to record strong growth in market share in its enterprise and international segments due to the adoption of new products. Some of the names that were dropped included Alimentation Couche Tard Inc. (ATD/TSX), Barrick Mining Corp. (B/NYSE), and Pembina Pipeline (PPL:TSX). Companies remaining on the list include Loblaw Cos. Ltd. (L/TSX), Brookfield Corp. (BN/NYSE), Constellation Software Inc. (CSU:TSX) and Microsoft Corp. (MSFT:Nasdaq). For 2025, the top 30 list returned 14.4 per cent, Pearson and Odendahl said.

Are Canada’s Big Banks the counterweight to Big Tech?

Canada’s

Big Six banks

— Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia and National Bank of Canada — are “considered boring” stocks to own, said David Rosenberg, founder of Rosenberg Research and Associates. But it’s a good kind of boring, he said, as bank stocks have provided reliable dividends without much volatility. Over the past six months, the TSX Canadian banks composite index has outpaced the Nasdaq composite by about 20 per cent, Rosenberg said, meaning investors can position the bank stocks “as a stabilizer if tech euphoria fades or policy shocks hit risk assets.” The banks are coming off a very strong year and there have been concerns about valuations. “We see limited reason for alarm at this stage of the cycle, when investors increasingly want a mix of low volatility, stable profitability, and income,” Rosenberg said in a note.

Price target hikes

• Analysts at CIBC Capital Markets hiked the price targets on the major Canadian insurance companies, including Great-West Lifeco Inc. (GWO:TSX), Sun Life Financial Inc. (SLF:TSX), Manulife Financial Corp. (MFC:TSX) and iA Financial Corp. Inc (IAG:TSX). Great-West’s price target rose to $73 from $67. It closed Friday at $67.26. Sun Life’s went to $95 from $93 and closed Friday at $87.40. Manulife’s rose to $58 from $50. It closed Friday at $52. And iA’s price target went to $184 from $175, closing Friday at $179.67. “Despite achieving strong ROE (return on equity) expansion, we believe lifecos are not getting full credit for future ROE expansion, which we see as a reason to remain positive on the sector,” CIBC’s Paul Holden said in a note.
• BMO Capital Markets oil and gas analyst Jeremy McCrea hiked his price target on energy company Spartan Delta Corp. (SDE:TSX) to $9 from $7.50 on the expectation that shares will maintain their momentum in 2026 after rising 116 per cent last year. Spartan closed Friday at $7.55.
• Analysts at Raymond James Ltd. hiked their price target for Act Energy Technologies Ltd. (ACX/TSX) to $10 from $8.75 on the premise that the Calgary-based oilfield services company can “profitably consolidate the directional drilling market in the U.S.” Act also just completed the purchase of Stryker Energy Directional Services LLC, though Raymond James analysts said in a note they were surprised by the “muted” market response to the deal. “As such, we reiterate our outperform rating, and believe an attractive entry point exists at these levels,” they said. Act closed Friday at $5.05.
• TD Cowen hiked its price target for CAE Inc. (CAE/TSX) to $53 from $46 on an expected increase in defence spending by the federal government. CAE closed Friday at $45.97.

• TSX pegged to rise in 2026, but earnings will need to deliver on high expectations
• This TSX transportation stock is up 17% this week and analysts see more upside potential

• Email: gmvsuhanic@postmedia.com