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CIBC upgrades AutoCanada stock rating to Outperformer on operational gains

Published 26/08/2025, 15:42
CIBC upgrades AutoCanada stock rating to Outperformer on operational gains
ACQ
-0.42%

Investing.com - CIBC has upgraded AutoCanada (TSX:ACQ) (OTC:AOCIF) from Neutral to Outperformer and raised its price target to C$38.00 from C$32.50, citing the company’s successful operational transformation program.

The upgrade, announced Monday, reflects AutoCanada’s ability to exceed expectations through its transformation initiatives, which have driven significant improvements in profitability and leverage, according to CIBC.

The financial institution noted that AutoCanada has simplified its business model and appears positioned to resume growth in 2026 with a streamlined cost structure and new leadership team in place.

While CIBC acknowledged that AutoCanada still faces an uncertain macroeconomic environment complicated by tariffs, it believes the company’s current valuation adequately reflects these risks.

CIBC expressed confidence that AutoCanada has sufficient internal growth drivers—including cost improvement measures, sales initiatives, and potential mergers and acquisitions—to offset market-level uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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