Shares of Canadian aerospace giant Bombardier Inc. have continued their remarkable ascent into the new year, closing at a multi-decade high of $275.37 on Friday, January 16, 2026. This surge caps off an extraordinary 138% gain for the stock throughout 2025, fueled by strong demand for its business jets and a major expansion announcement.
Bombardier's Expansion Fuels Analyst Optimism
The latest jump followed Bombardier's revelation that it will build a new factory near Montreal, scheduled to open by the end of 2027. This move is a direct response to increased demand for its Challenger and Global business jet models. The news prompted analysts to reaffirm and raise their bullish price targets.
RBC Capital Markets analyst James McGarragle, who had already increased his target to $287 from $263 on January 12, reiterated his confidence. He identified Bombardier as RBC's top investment idea, citing potential benefits from rising Canadian defence spending and a market shift toward its jets that could drive long-term services growth. McGarragle projects the company can compound free cash flow at a rate well above a low-teen percentage into the 2030s.
Similarly, National Bank's Cameron Doerksen lifted his target to $290 from $263. The stock's powerful performance placed it among the top ten gainers on the S&P/TSX Composite Index for the week, gaining 11.6%.
TD Cowen: A Pivot to Insurers Over Banks for 2026
In a significant sector call, analysts at TD Cowen are advising investors to favor Canada's major life insurance companies over the big banks for 2026. Led by Mario Mendonca, the team notes that insurers underperformed the financial sector last year and now trade at a 17% discount to banks on a forward price-to-earnings basis.
TD upgraded price targets across the board, issuing buy ratings on all major insurers. Their top picks are Sun Life Financial Inc. and Manulife Financial Corp. The revised targets are:
- Sun Life (SLF): Target raised to $104 from $99. (Friday close: $87.47)
- Manulife (MFC): Target raised to $60 from $57. (Friday close: $52.04)
- Great-West Lifeco (GWO): Target raised to $73 from $70.
- iA Financial (IAG): Target raised to $192 from $178.
The analysts cite relative valuation, greater capital flexibility, and lower downside risk to earnings as key reasons for the shift.
Scotiabank's Copper Play as Metal Hits Records
With copper prices soaring 41% in 2025 and setting a new record of US$13,238 per tonne on January 6, 2026, Scotia Capital analysts see continued strength. Orest Wowkodaw and his team attribute the rise to supply challenges and an inventory squeeze, leading them to raise price targets for mining stocks by an average of 17%.
Scotia's top picks in the sector are Cameco Corp., Capstone Copper Corp., and Freeport-McMoRan Inc. The firm also "highly recommends" Champion Iron, Ero Copper, Foran Mining, Hudbay Minerals, Ivanhoe Mines, and Lundin Mining.
Key target increases include:
- Cameco (CCO): Target $155 (from $150). Friday close: $162.06.
- Capstone Copper (CS): Target $18 (from $16). Friday close: $14.48.
- Freeport-McMoRan (FCX): Target US$63 (from US$47). Friday close: US$58.71.
The analysts forecast 2026 to be a solid year for miners, driven by robust metal prices and improved operational performance.
