TD Securities cuts Canaccord stock rating to hold, target to C$10

Published 06/02/2025, 14:46
TD Securities cuts Canaccord stock rating to hold, target to C$10

On Thursday, TD Securities analyst Graham Ryding adjusted the rating and price target for Canaccord Genuity Group (CF:CN) (OTC: CCORF), downgrading the stock from Buy to Hold and lowering the price target to C$10.00 from the previous C$12.00. The revision reflects concerns over increased expenses and market volatility that could dampen capital markets activity in the near term.

Ryding emphasized the challenges facing the company, including slower asset under management (AUA) growth and margin compression in the U.K. Wealth platform, as well as ongoing uncertainty regarding a U.S. regulatory matter. Despite these issues, TD Securities has maintained its blended multiple in its valuation approach.

The analyst’s commentary highlighted the limited potential total return of 13% as a key factor in the downgrade. Ryding’s outlook suggests a cautious stance on Canaccord’s stock performance due to the subdued expectations for capital markets activity and the lack of clarity on the resolution of the U.S. regulatory situation.

The price target adjustment to C$10.00 is based on revised estimates that take into account the higher expense run-rate and the current market conditions. The new target represents a significant decrease from the previous C$12.00 target set by TD Securities.

Canaccord Genuity Group’s stock rating downgrade to Hold indicates a neutral expectation of the stock’s performance, advising investors to maintain their current positions without adding more shares. This change comes as the financial industry grapples with a complex market environment that has impacted firms across the sector.

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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