5N Plus Emerges as TSX Top Performer with 56% Year-to-Date Gain
Montreal-based 5N Plus Inc. (VNP:TSX) has surged to become the top gainer on the Toronto Stock Exchange in 2026, with shares climbing an impressive 56% year-to-date. National Bank of Canada Capital Markets analyst Baltej Sidhu recently increased his price target for the company to $33 from $30, following his initiation of coverage in late January. The stock closed at $27.69 on Friday, indicating potential for further appreciation according to analyst projections.
Dual Growth Engines Fueling Optimism
Sidhu's bullish outlook centers on two primary growth drivers for 5N Plus. First, the company serves as the exclusive supplier of cadmium telluride to First Solar Inc., America's largest solar modules manufacturer. Second, through its subsidiary Azure Space Solar Power GmBH, 5N Plus produces space solar cell technology for satellites, with orders extending into 2030. Sidhu describes Azure's market as "structurally undersupplied," creating favorable conditions for sustained growth.
Adding to the positive momentum, the U.S. Department of Defense recently invested US$18.1 million in 5N Plus's Utah facility, which produces germanium for optics and solar germanium crystal supply chains. Sidhu emphasized that "beyond our base case, VNP offers meaningful upside not reflected in either our or Street estimates." The consensus 12-month price target among six analysts following the stock stands at $31.75, according to Bloomberg data.
CIBC's Refreshed Top 10 Stock Picks for February
CIBC Capital Markets has unveiled its updated list of top 10 stock ideas for February, acknowledging that its previous selections underperformed in January with a negative 3% return, largely due to being underweight in precious metals during a sector rally. Analysts Sid Mokhtari and Michael Petipas have compiled a new portfolio that includes:
- Methanex Corp. (MX:TSX)
- NGEX Minerals Ltd. (NGEX:TSX)
- Nutrien Ltd. (NTR:TSX)
- Orla Mining Ltd. (OLA:TSX)
- Peyto Exploration and Development Corp. (PEY:TSX)
- Suncor Energy Inc. (SU:TSX)
- Whitecap Resources Inc. (WCP:TSX)
- Bank Of Montreal (BMO:TSX)
- IGM Financial Inc. (IGM:TSX)
- AtkinsRéalis Group Inc. (ATRL:TSX)
The analysts noted that February typically presents weaker market conditions but observed that energy stocks tend to "outperform" in late February through April, while copper has historically shown stronger performance than gold and silver during this period.
Software Sector Faces Significant Volatility
The technology sector experienced substantial turbulence this week, with software stocks particularly affected. David Rosenberg, president of Rosenberg Research & Associates Inc., reported that investors fled software stocks, resulting in losses totaling more than US$1 trillion when accounting for market capitalization, bonds, and loans. The sector has declined 18% year-to-date.
The selloff was triggered by Anthropic's release of an AI tool designed to automate legal work, which initially impacted legal software developers before spreading to other software segments. Rosenberg suggested this represents "signs that AI is on the precipice of supplanting existing business models" rather than a bubble bursting. He cautioned that AI has yet to prove its full value, citing Alphabet Inc.'s doubled capital expenditure for AI technology that only "barely beat its revenue target."
Despite broader sector challenges, Celestica Inc. (CLS:TSX) emerged as a notable performer, gaining almost 10% this week and ranking among the TSX's top-10 gainers. TD Cowen analysts maintained their $451 price target for Celestica, citing its connections to Google's AI initiatives. The stock closed at $419.62 on Friday.
Meanwhile, Desjardins Group Capital Markets analysts reduced price targets for several TSX technology companies:
- Constellation Software Inc. (CSU:TSX): Target cut to $3,900 from $5,300 (Friday close: $2,380)
- Topicus.com Inc. (TOI:TSX): Target cut to $140 from $190 (Friday close: $94.72)
- Lumine Group Inc.: Target cut to $36 from $52 (Friday close: $20.00)
The analysts also noted that former U.S. software leaders including ServiceNow Inc., Salesforce Inc., Intuit Inc., and Oracle Corp. have declined between 20% and 30% year-to-date.
Notable Analyst Price Target Adjustments
Several other Canadian companies saw significant analyst price target changes this week:
- Cardinal Energy Ltd. (CJ:TSX): RBC Capital Markets analyst Rob Mann increased his target to $9.50 from $9.00 ahead of the company's second steam assisted gravity drainage project in Saskatchewan. The stock offers a base dividend of 7.9% and closed at $9.37.
- Suncor Energy Inc. (SU:TSX): BMO Capital Markets analyst Randy Ollenberger raised his target to $85 from $70 after Suncor achieved a US$10 per barrel reduction in its break-even point ahead of schedule. Shares closed at $73.46.
- TMX Group Ltd. (X:TSX): Raymond James analysts increased their target to $61 from $59 following better-than-expected earnings, suggesting the recent tech selloff represents an "overreaction" for data providers. The stock closed at $45.42.
- Canadian National Railway Co. (CNR:TSX): TD Cowen analysts reduced their target to $164 from $166 after the company projected muted volume growth for 2026. Shares closed at $138.38.
- Cameco Corp. (CCO:TSX): National Bank of Canada Capital Markets analyst Mohamed Sidibe raised his target to $175 from $145 ahead of the company's fourth-quarter earnings report on February 13. The stock closed at $155.18.
- BCE Inc. (BCE:TSX): Multiple analysts adjusted targets post-earnings, with ATB Cormark Capital Markets increasing to $44 from $40 and JPMorgan Chase & Co. raising to $37 from $33. BCE closed at $34.25.
