Update shared on 30 Oct 2025
Fair value Increased 6.30%Analysts have raised their price target for Toromont Industries from C$151.78 to C$161.33, reflecting improved profit margin expectations. However, valuations are seen as increasingly full.
Analyst Commentary
Recent updates from research firms have provided a mixed outlook for Toromont Industries, with both positive and cautious perspectives on the company's valuation and growth trajectory.
Bullish Takeaways- Bullish analysts have increased their price targets for Toromont Industries, signaling confidence in the company's ability to maintain or improve profitability.
- Improved margin expectations are contributing to upward adjustments to fair value estimates, reflecting operational strength.
- The company's execution and business fundamentals are considered robust, supporting higher target prices and ongoing positive sentiment.
- Some analysts have downgraded the stock to Hold due to concerns around limited upside at current valuation levels.
- Valuation is viewed as increasingly full, with modest room for continued appreciation in the near term.
- Despite raised price targets, analysts are expressing caution regarding further gains without evidence of additional earnings growth or market catalysts.
What's in the News
- Toromont Industries announced a share repurchase program to buy back up to 8,128,838 common shares, representing 9.99% of its issued share capital. The program is valid until September 22, 2026 (Buyback Transaction Announcements).
- The Board of Directors authorized a new buyback plan on September 19, 2025 (Buyback Transaction Announcements).
- Unifor and Toromont Industries in Bradford, Ontario, reached an agreement to end the strike, with outstanding wage issues to be settled through interest arbitration. Workers will return by September 2, 2025 (Labor-related Announcements).
Valuation Changes
- Consensus Analyst Price Target has risen from CA$151.78 to CA$161.33, reflecting renewed optimism in share valuation.
- Discount Rate has edged down slightly from 7.10% to 7.03%, suggesting a modestly lower perceived risk profile.
- Revenue Growth expectations have dipped marginally from 4.69% to 4.55%.
- Net Profit Margin forecast increased from 10.69% to 11.31%, signaling an improved profitability outlook.
- Future P/E has inched up from 23.50x to 23.65x, indicating a slight valuation premium on expected earnings.
Disclaimer
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