Shopify Inc. (SHOP:TSX) experienced a significant rally this week, with its shares soaring 28 per cent to secure a top 15 finish on the S&P/TSX Composite index. The robust performance, described by TD Cowen analyst Todd Coupland as a ‘clean Q2 beat,’ appears to have assuaged earlier investor concerns regarding the potential threat of artificial intelligence to the e-commerce service provider.
Coupland, in an August 5 note, recommended buying SHOP for ‘durable profitable growth and agentic commerce optionality.’ The company’s second-quarter results demonstrated strong momentum, with revenue, gross merchandise value (GMV), free cash flow, and gross profit each increasing by more than 30 per cent compared to the same period last year. This positive trend is anticipated to extend into the next quarter, according to Coupland, who subsequently hiked his price target for Shopify to $308 from $262. Shares closed Friday at $211.10.
Earlier in the year, AI-related fears had pressured Shopify’s stock, driving shares down as much as 44 per cent between early January and mid-May. However, a re-evaluation by investors, who seemingly concluded that AI tools would not enable businesses to bypass Shopify’s platform, led to a recovery. J. Parker Lane, managing director at Stifel U.S. Equity Research, noted that Shopify’s earnings ‘validated two key pillars of our investment case.’ These pillars include the company’s continued pre-eminence in market share gains, which are outpacing the broader e-commerce sector’s growth, and its strategic use of AI to further solidify its leadership position. Lane also raised his price target for Shopify, moving it to $252 from $212. Across the board, the 12-month consensus price target for Shopify stands at $235.48, based on the calls of 50 analysts tracked by Bloomberg.
Energy Sector Sees Price Target Adjustments After Earnings
Beyond Shopify’s impressive week, the Canadian energy sector also saw significant analyst activity following a wave of earnings reports. Companies, from oilsands giant Suncor Energy Corp. (SU:TSX) to pipeline operator South Bow Corp. (SOBO:TSX), benefited from higher energy prices, prompting analysts to update their share price targets.
- Keyera Corp. (KEY:TSX): RBC Capital Markets analyst Maurice Choy increased his price target to $66 from $62. This adjustment followed Keyera’s announcement that it expects projects to perform better than initially guided. Shares closed Friday at $57.11.
- Canadian Natural Resources Ltd. (CNQ:TSX): Chris MacCulloch at Scotia Capital Inc. raised his price target to $73 from $71. MacCulloch believes CNQ is exceptionally well-positioned within the oilpatch to capitalize on an improved Canadian energy sector climate. Shares closed Friday at $63.45.
- Suncor Energy Corp. (SU:TSX): Despite reporting mixed second-quarter results that led to a 10 per cent drop in shares this week, RBC Capital Markets analyst Greg Pardy reiterated his outperform rating and a $100 price target. Pardy continues to view Suncor as a top global energy idea for 2026, citing its ‘cash flow generation, an underleveraged balance sheet, attractive shareholder returns.’ Shares closed Friday at $83.86.
- South Bow Corp. (SOBO:TSX): Raymond James analyst Michael Barth hiked his price target to $62 from $61. Barth highlighted a positive revision to earnings for the year and anticipates that positive final investment decisions for several projects, not yet reflected in the share value, will boost the stock. Shares closed Friday at $49.66.
Gold Rebounds, Analyst Sees Renewed Value
The precious metal market also experienced notable shifts. Gold, which had flirted with bear market territory after melting down by just over 25 per cent from the start of the United States-Iran war to mid-July, began to rebound. Craig Bassinger, chief market strategist at Purpose Investments Inc., observed a ‘certain shift in the market’ in an August 3 note. Despite rising yields, climbing oil prices, and a strong U.S. dollar—factors typically detrimental to gold prices—the metal has swung above US$4,300. Bassinger believes the fundamental and structural conditions supporting gold’s ascendancy, such as central bank purchases which reaccelerated in the second quarter, remain intact. He concluded, ‘We view the risk/reward of owning the shiny yellow metal as positive once again,’ suggesting a potential second-half rebound.
Further Price Target Adjustments Across TSX
Several other TSX-listed companies also saw their price targets adjusted by analysts:
- ATB Cormark Capital Markets analyst Gavin Fairweather hiked his price target for Altus Group Ltd. (AIF:TSX) to $59 from $56, citing an eight per cent increase in EBITDA guidance due to ‘strengthening business momentum.’
- RBC Capital Markets analyst Matthew McKellar raised his price target for Cascades Inc. (CAS:TSX) to $18 from $15, noting tightening North American containerboard markets and ‘good execution,’ deeming the shares ‘undervalued.’
- Raymond James analyst Stephen Boland increased his price target for Dominion Lending Centres (DLCG:TSX) to $12.50 from $11, following the acquisition of mortgage technology platform Filogix Inc., which is expected to boost earnings per share and cash flow.
- Scotiabank Capital Markets analyst Phil Hardie maintained his price target for Goeasy Ltd. (GSY:TSX) at $39, despite the lender revising down its full-year outlook, though earnings were better than ‘feared.’
- RBC Capital Markets analyst Darko Mihelic hiked his price target for Manulife Financial Corp. (MFC:TSX) to $67 from $55, driven by strong results across all segments that beat EPS estimates.
- National Bank of Canada Capital Markets analyst Mohamed Sidibe raised his price target for Allied Gold Corp. (AAUC:TSX) to $33 from $29, after rolling his estimates forward by one quarter.
- CIBC Capital Markets analyst Paul Holden increased his price target for iA Financial Corp. Inc. (IAG:TSX) to $220 from $208, attributing it to ‘a sizable EPS beat aided by very strong wealth management results.’
- TD Cowen analyst Cheryl Zhang hiked her price target for Savaria Corp. (SIS:TSX) to $37 from $35, following ‘another quarter of strong execution’ that has seen shares rise 33 per cent year-to-date.
- BMO Capital Markets analyst Devin Dodge raised his price target for WSP Global Inc. (WSP:TSX) to $280 from $272, based on financial performance on track to meet or exceed the upper end of its 2026 guidance range.
The week’s trading activity and subsequent analyst revisions highlight a dynamic market environment, where strong corporate performance, strategic acquisitions, and shifting macroeconomic factors continue to drive significant movements and re-evaluations across diverse sectors of the TSX.
