Thursday’s analyst upgrades and downgrades
Analysts issued mixed calls on Canadian telecoms and Bombardier. TD Cowen upgraded BCE to buy, citing a 13% post–early-June drop as “overdone,” a $37 target, and expectations of no 2026 guidance changes at Aug. 6 Q2 results. National Bank cut BCE and Telus forecasts, including a potential Telus dividend policy reset. Stifel initiated Bombardier coverage with a buy, citing stronger industry and upside to $550.
How this was made
The 30-second read
Why it matters
The most tradable elements are the specific rating/target changes and the explicit dividend-policy reset expectation for Telus, which can reprice income risk ahead of earnings.
Market read
This is a catalyst-style sell-side update into near-term earnings dates, with Telus’ dividend reset assumption the clearest valuation lever.
What to watch
Investors may focus more on management’s actual dividend-policy language and monetization plan (Telus) and on any concrete contract timing/visibility (BCE data center wins) than on analyst scenario math.
Background
The article is a roundup of analyst actions, including BCE and Telus forecast/rating changes tied to upcoming Q2 results and a Bombardier coverage initiation.
Ticker impact
TD Cowen upgraded BCE to Buy, arguing the recent 13% drop is “overdone” and expecting Q2 results on Aug. 6 to be a “non-event.”
Mildly positive bias into the earnings date; likely limited follow-through unless Q2 results confirm the “non-event” view.
The article provides a concrete rating/stance change and a thesis (Starlink headline risk overdone, dividend intact, data center wins), but it’s still sell-side commentary rather than company-reported results.
Stifel initiated coverage on Bombardier with a Buy, citing a transition after its turnaround and projecting industry tailwinds supporting an upside scenario to $550.
Potential near-term support from fresh coverage; magnitude depends on how credible investors find the 2030 earnings growth and backlog/capex-cycle assumptions.
The newest facts are the initiation and thesis points (backlog, margin expansion potential, defense spending opportunity), which are supportive but not confirmed by new Bombardier filings or guidance in the article.
Market effects
Canadian telecom sentiment may hinge on dividend sustainability and competitive intensity (Starlink/US wireless read-through), influencing sector relative-value positioning.
Could affect TSX telecom/income-investor flows into late-July/early-August earnings windows.
Limited direct global spillover; mainly impacts Canadian telecom and aerospace/defense-exposure narratives.
Counterpoint
Sell-side upgrades/initiations may fade if earnings results or management commentary contradict the “non-event” framing (BCE) or if dividend-cut assumptions (Telus) prove too pessimistic.
Key entities
- companyBCE Inc.
Upgraded to Buy by TD Cowen; thesis centers on overdone headline risk and a “non-event” Q2.
- companyTelus Corp.
National Bank Financial expects soft Q2 and a dividend-policy reset, including a potential 40% cut and DRIP discount elimination.
- companyBombardier Inc.
Stifel initiated coverage with a Buy, highlighting backlog, services/defense mix, and an upside scenario.
