Jefferies has adjusted its outlook on Power Corporation (PWCDF, Financial), raising the price target to C$56 from C$55 while maintaining a Buy rating. The financial services company, based in Canada, is expected to see growth momentum return in 2026, according to the firm's revised 2025 forecast.
Despite this optimism, Jefferies acknowledges existing risks, noting that the absence of tariff resolutions poses challenges. The Canadian financial sector, traditionally resilient to economic downturns, faces uncertainties tied to upcoming domestic elections and ongoing negotiations, leaving the near-term outlook unclear.
While some potential downturns have been considered, Jefferies cautions investors that a full resolution of these risks has yet to be achieved. In response to the current environment, Jefferies has also revised its estimates downward and downgraded stocks such as CIBC and National Bank of Canada, emphasizing the complexity of the present financial landscape.
