Analysts See Gains in Allied Gold, Defence Stocks
Allied Gold Corp. (AAUC:TSX) led the week’s gains among TSX-listed equities, finishing third on the S&P/TSX composite index after a 23 percent rally. The surge followed an update from the miner that clarified production expectations and sparked a target hike from National Bank of Canada Capital Markets analyst Mohamed Sidibe.
Analyst Upgrades and Price Targets
Sidibe upgraded Allied to outperform from sector perform and raised his price target to $40 from $37. The analyst cited the company’s third-quarter results, which beat estimates on earnings per share and realized gold price. While gold sales and production figures aligned with forecasts, costs per ounce came in higher than anticipated.
Production has officially begun at the Kurmuk mine in Ethiopia. Sidibe noted that the company announced a potential dividend and share buyback program starting in 2027. Based on the calls of six analysts, Allied carries a 12-month price target of $44.77.
Budget 2026 and Defence Stocks
Ottawa’s Budget 2026, released Nov. 5, reinforced support for the federal government’s new Defence Industrial Strategy. Stifel Canada analyst Greg MacDonald highlighted several companies poised to benefit from this renewed focus on domestic manufacturing.
Drone manufacturer Volatus Aerospace Inc. (FLT:TSX) is positioned to receive $2.3 billion in dedicated funding over five years for new Canadian Armed Forces systems. MacDonald said Volatus has qualified to bid for every type of work under the new federal Drone Defence Initiative. Stifel has a $1 price target on Volatus, while the consensus price target is 96 cents based on calls of seven analysts. The stock closed Friday at 43.5 cents.
Maritime Launch Services Inc. could also see gains from the $2.7 billion earmarked for space initiatives. MacDonald noted that while Canada has funded smaller rockets and launch pads, the expectation is the government will eventually fund larger vehicles and the infrastructure to support them. Stifel has a price target of 95 cents on Maritime, which closed Friday at 44.5 cents, and a broader target of $1.39 based on four analyst ratings.
Northern Infrastructure and Subsidies
TD Cowen analyst Cheryl Zhang upgraded North West Company Inc. (NWC:TSX) to a $65 price target from $63. The hike reflects the budget proposals to raise grocery subsidies and allocate over $50 billion to First Nations funding over the next decade.
Zhang also pointed to a $1.6 billion commitment to Northern infrastructure as a positive for the company. The stock closed Friday at $59.46.
