MDA Space Ltd. Stands Out as a Beacon in a Struggling TSX Market
While the S&P/TSX composite index has relinquished all its gains for the year and then some, certain stocks continue to defy the broader downturn. Space and defence technology firm MDA Space Ltd. (MDA:TSX) has surged over 61% year-to-date, positioning itself as a notable bright spot. Desjardins Capital Markets analyst Benoit Poirier, in a March 19 report, highlighted several catalysts expected to drive shares higher in 2026, leading to a price target increase to $53 from $51.
Poirier cited improved visibility on Canada's space program as a key factor. MDA is poised to benefit from government projects, including a $32 million ground-based space surveillance system and a strategic partnership with Canada's Department of National Defence and Telesat Corp. (TSAT:TSX) to build satellites enhancing communication over Canada's North. Following the launch of MDA's U.S.-listed shares on March 12, Poirier estimated the Brampton, Ontario-based company garnered $444 million in net proceeds, potentially ending 2026 with $94 million in net cash for acquisitions. Bloomberg data shows eight analysts have a 12-month average price target of $54.25 for MDA, with shares closing recently just under $43.
Navigating Energy Market Volatility Amid Iran Conflict
The ongoing conflict in Iran has propelled oil and natural gas prices upward, yet their future trajectory remains uncertain. Scotia Capital Markets analysts, led by Kevin Fisk, have identified top picks in the Canadian energy sector to help investors manage this volatility. "Given the commodity price uncertainty, our preference is for stocks with above-average yields in all our commodity cases, and are baking in reasonable commodity prices," the Scotia team stated.
Oil-weighted companies are currently pricing oil at an average of US$71 per barrel, while West Texas Intermediate (WTI) traded around US$95. Scotia's top oil picks include:
- Cenovus Energy Inc. (CVE:TSX)
- Whitecap Resources Inc. (WCP:TSX)
- Ovintin Inc. (OVV:TSX)
These selections are based on outlooks built on lower WTI prices compared to peers and solid exposure to stronger oil prices. On the defensive side, Scotia favors Freehold Royalties Ltd. (TSX:FRU) and PrairieSky Royalty Ltd. (PSK:TSX).
In the natural gas space, top picks encompass:
- Topaz Energy Corp. (TPZ:TSX) – offering ultra-high margin exposure to top assets in the Western Canada Sedimentary Basin.
- Spartan Delta Corp. (SDE:TSX) – a top-growth name operating in the Duvernay region.
- Peyto Exploration and Development Corp. (PEY:TSX)
- Expand Energy Corp. (EXE:NYSE) – Scotia's best U.S. gas pick for its upside torque and downside protection.
Additionally, Vermilion Energy Inc. (VET:TSX) provides exposure to the European gas market.
Reassessing Power Corp.'s Recent Selloff
Investors reacted to Power Corp. of Canada's (POW:TSX) earnings report on Thursday by driving shares down 4%. However, shares rebounded the following day as several analysts, including RBC Capital Markets' Bart Dziarski, hiked price targets. Dziarski raised his target to $73 from $69, noting earnings were impacted by one-time sizable items. Shares closed at $64.88, down over 10% year-to-date but up 62% in 2025.
Dziarski argued the selloff was overdone, given shares trade at a 21% discount to net asset value and Power Corp. pays an attractive dividend of approximately 4%. The company increased its dividend by 9% and is in a solid position to continue share repurchases.
Notable Analyst Price Target Adjustments
Several other stocks saw significant analyst revisions:
- BCE Inc. – TD Cowen analyst Vince Valentini raised the price target to $41 from $40 after BCE announced its joint data centre project with CoreWeave Inc. and Cerebras Systems Inc. increased capacity to 800 megawatts from 500. Shares closed at $35.43.
- Kraken Robotics Inc. (PNG:TSX) – Raymond James analyst Stephen Li increased the target to $11 from $6.25 following its acquisition of Covelya Group, a subsea technology supplier. Shares closed at $8.93.
- Nutrien Ltd. (NTR:TSX) – BMO Capital Markets analyst Joel Jackson raised the target to $123.22 from $116.49, citing fertilizer supply stresses from a closed Strait of Hormuz. Shares closed at $102.56.
- Loblaw Cos. Ltd. (L:TSX) – Veritas Investment Research analyst Kathleen Wong increased the target to $70 from $67, believing the chain's discount and drug flywheel should drive sustained share gains. Shares closed at $61.86.
- Wheaton Precious Metals Corp. (WPM:TSX) – National Bank of Canada Capital Markets analyst Shane Nagle hiked the target to $245 from $240 on an improved outlook with projects slated for production. Shares closed at $157.08.
- AutoCanada Inc. (ACQ:TSX) – CIBC Capital Markets analyst Ty Collin cut the target to $20 from $34 after earnings missed estimates by a wide margin. Shares closed at $17.15.
- Highlander Silver Corp. (HSLV:TSX) – National Bank of Canada Capital Markets analyst Alex Terentiew raised the target to $14 from $11 following its acquisition of the Corani silver project and Mercedes gold mine. Shares closed at $6.76.
This weekly analysis provides investors with critical insights into market movements, top performers, and strategic opportunities in a volatile economic landscape.
