Shares of Canadian heavy-duty bus manufacturer NFI Group Inc. staged a powerful rebound this week, climbing approximately 17% on the S&P/TSX Composite Index. The Winnipeg-based company's stock, which trades under the symbol NFI, found renewed investor confidence following significant corporate developments.
Leadership Change and Recall Settlement Fuel Rally
The rally was ignited by NFI's announcement of a new chief executive officer and a finalized settlement related to a previously disclosed battery recall. The news propelled shares upward by 12% initially, with gains extending through the week before a slight pullback on Friday. This surge marks a reversal for NFI, which had seen its stock rise nearly 47% through July of this year only to surrender most of those gains in the subsequent months.
Analysts covering the company believe this positive momentum could have room to run. CIBC Capital Markets analyst Krista Friesen noted in early November that despite the recall challenges, NFI maintains "solid fundamentals." A key pillar of this bullish outlook is the company's massive order backlog, which stands at $13.2 billion.
"We maintain confidence in NFI’s ability to deliver growth and margin improvement heading into 2026," Friesen stated. CIBC has set a price target of $20 for NFI shares. The average 12-month price target among six analysts tracked by Bloomberg is slightly higher at $20.83. NFI stock closed trading on Friday at $15.37.
Desjardins Unveils Top Picks for 2026
In other market analysis, Desjardins Research released a fresh list of its top stock ideas for the coming year. The selections span several sectors and highlight companies with specific catalysts for growth.
In the consumer staples and discretionary sector, Desjardins' top pick is Gildan Activewear Inc. (TSX:GIL). The firm has a price target of $95 on Gildan, citing the potential for a greater than 20% compound annual growth rate in earnings per share over three years, along with controllable EPS and potential share buybacks. Gildan traded near $87.48 on Friday.
For financial services, Canadian Imperial Bank of Commerce (TSX:CM) is the favoured choice. Desjardins has a $135 price target on CIBC, which closed Friday at $130.70. The analysis suggests CIBC, rebranded as the bank of "no surprises," deserves a premium valuation on expectations of strong execution in 2026 regarding net interest margins, expenses, credit performance, and share repurchases.
Within the metals and mining sector, Desjardins selected Torex Gold Resources Inc. (TSX:TXG) as its top idea, with a price target of $90. Shares ended the week at $66.77. The choice is based on Torex's recent on-time and nearly on-budget completion of a new mine in Mexico, its acquisition of Reyna Silver, and an anticipated debt-free status by the first quarter of 2026.
Other Notable Market Movers and Trends
Nouveau Monde Graphite Inc. (TSX:NOU) attracted fresh analyst coverage this week after its Quebec-based graphite mine and battery material plant project was referred to Mark Carney's Major Projects Office (MPO). BMO Capital Markets initiated coverage with an outperform rating and a $6 price target, noting offtake agreements for nearly all production, with 80% subject to a floor price. The stock currently trades around $3.50. National Bank Capital Markets, which began coverage in November, has a $5.25 target.
On the economic front, persistent food inflation continues to shape the investment landscape. Statistics Canada reported that food prices at stores rose 4.7% year-over-year in November, more than double the overall Consumer Price Index increase of 2.2%. RBC Capital Markets analyst Irene Nattel suggests this environment benefits grocers with a strong value proposition, with Loblaw Cos. Ltd. (TSX:L) particularly well-positioned. RBC, which named Loblaw a top idea for 2026, has a $68 price target on the shares, which traded near $62 on Friday.
