Key Analyst Upgrades and Downgrades from Thursday: Insights and Implications

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September 11, 2025

Toronto, ON – Several Canadian companies are experiencing a wave of positive sentiment from financial analysts following recent earnings reports and strategic developments. Group Dynamite Inc., Kraken Robotics Inc., Roots Corp., and Sangoma Technologies Corp. all received increased price targets, signaling growing confidence in their future performance.

Group Dynamite Inc. Momentum Continues

Stifel analyst Martin Landry believes Group Dynamite Inc.’s positive trajectory is persisting into August, despite expectations of a moderate deceleration in growth later this fiscal year. Shares of the Montreal-based retailer, operating under the Garage and Dynamite brands, jumped over 15 percent on Wednesday following a quarterly report showing comparable-store sales growth of 25.7 percent, exceeding previous forecasts. Adjusted earnings per share climbed 43.4 percent to 57 cents.

Landry attributes the company’s success to it’s trendy product offerings, rapid design-to-shelf turnaround, innovative marketing, and effective digital advertising. Several other firms echoed this sentiment, upgrading their targets for the stock. National Bank raised its target to $55, while TD Cowen and desjardins also increased their price predictions. RBC and Raymond james similarly expressed bullish views.

Kraken Robotics Benefits from Major Defense Contract

Kraken Robotics Inc. is poised for further growth following a substantial contract awarded to its key customer, Anduril Industries, by the Royal australian Navy. The $1.56 billion deal will provide Anduril with the resources to deliver and develop a fleet of autonomous underwater vehicles, for which Kraken supplies critical subsea batteries. National bank Financial analyst John Shao anticipates this win will translate to continued business for Kraken, especially as its new battery facility in Halifax nears completion.he raised his price target to $5.

According to Shao, the demand for autonomous undersea systems is rising among navies globally, suggesting this contract coudl be the first of many.

Roots Corp. Demonstrates Strengthening Brand

TD Cowen analyst Brian Morrison highlighted Roots Corp.’s “growing brand strength” after the company reported solid second-quarter results. Direct-to-consumer sales increased by 12.7 percent year-over-year, outpacing expectations. This positive performance is attributed to a prosperous product line and improved inventory management. Morrison increased his target for Roots shares to $4, noting confidence in an improving earnings profile.

Management is continuing to invest in marketing efforts, anticipating further brand momentum.

Sangoma Technologies: A Critical Juncture

TD Cowen’s David Kwan believes the next few quarters will be crucial for Sangoma Technologies Corp., especially as the company releases its fiscal 2025 results.Investors will be closely watching to assess the impact of recent go-to-market strategy changes. While revenue growth remains challenging, Kwan anticipates a return to positive growth in late 2025.

He maintained a “buy” rating and a $11 target for the company’s shares, citing strong free cash flow and a healthy balance sheet.

Did You Know? Analyst ratings are not guarantees of future performance, but they provide valuable insights into market sentiment and expectations.

Pro Tip: Diversifying your investment portfolio can definitely help mitigate risk and capitalize on opportunities across different sectors.

Company	Analyst	Previous Target	New Target	Rating
Group Dynamite	Stifel	$27.50	$53	Buy
kraken Robotics	National Bank Financial	$4	$5	Outperform
Roots Corp	TD Cowen	$3.75	$4	buy
Sangoma Technologies	TD Cowen	$11	$11	Buy

The Canadian retail and technology sectors have demonstrated resilience in recent years, adapting to changing consumer behaviors and global economic conditions. Staying informed about analyst ratings and company performance is crucial for investors seeking long-term growth. Understanding the factors driving these ratings-such as sales growth,profitability,and market share-can definitely help investors make more informed decisions.

In the broader economic landscape, factors like inflation, interest rates, and geopolitical events can substantially impact company performance and investor sentiment. Keeping abreast of these macroeconomic trends is essential for successful investing.

Frequently Asked Questions

• What is an analyst rating? Analyst ratings are assessments of a company’s stock, typically ranging from “buy” to “sell,” based on their research and expectations for future performance.
• How do analyst ratings affect stock prices? Analyst upgrades or downgrades can influence investor sentiment and thus impact stock prices, even though other factors also play a role.
• What is comparable-store sales growth? This metric measures the increase in sales at stores open for at least a year, providing an indicator of a retailer’s organic growth.
• What is EBITDA? Earnings Before Interest, Taxes, Depreciation, and Amortization – a measure of a company’s overall financial performance.
• Why is Kraken Robotics’ battery supply critically important? kraken’s batteries are critical components of Anduril’s autonomous underwater vehicles, positioning the company to benefit from growing demand in the defense sector.

What are your thoughts on the future of canadian retail? Share your opinions in the comments below!

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