TIH: Market Momentum And Recent Buyback Actions Will Shape Balanced Near-Term Outlook

Analysts have raised their price target for Toromont Industries to C$174 from C$169, reflecting greater confidence in the company’s outlook because of continued positive revisions in growth expectations and market performance.

Analyst Commentary

Recent analyst actions reflect a dynamic outlook for Toromont Industries, with a series of price target increases as well as some caution based on valuation concerns. The following summarizes current sentiment:

• Bullish analysts have raised price targets for Toromont Industries as high as C$180. They cite the company's robust market performance and consistent growth in earnings estimates.
• Continued positive momentum in price target revisions suggests increased confidence in Toromont's ability to execute on its growth strategy.
• The majority of updates maintain an Outperform or equivalent rating. This indicates a constructive view of future business prospects.
• Recent upgrades emphasize that demand trends remain favorable. This has supported the company’s improved valuation multiples.

• Bearish analysts have pointed to elevated valuation as a potential constraint. This has led to downgrades from Buy to Hold, even as price targets are being increased.
• Some research notes cite limited upside to new price targets, suggesting the current market price already reflects much of the anticipated operational improvement.
• Neutral and Hold ratings have been maintained. This indicates that, while growth is acknowledged, uncertainties or risks remain regarding margin sustainability and further re-rating potential.

What's in the News

• The Board of Directors has authorized a share buyback plan, which allows the company to repurchase its common shares (Key Developments).
• Toromont Industries announced a share repurchase program under a normal course issuer bid. The company intends to repurchase up to 8,128,838 common shares, representing 9.99% of its issued share capital. This program is valid until September 22, 2026. As of September 12, 2025, the company reported 81,367,784 issued and outstanding shares (Key Developments).
• From July 1, 2025 to September 20, 2025, Toromont Industries completed the repurchase of 986,000 shares, representing 1.21% of outstanding shares, for CAD 123 million under the current buyback program (Key Developments).
• No shares were repurchased during the most recent tranche ending September 30, 2025, under the buyback announced in 2025 (Key Developments).

Valuation Changes

• The Fair Value Estimate has risen slightly, increasing from CA$168.56 to CA$174.11.
• The Discount Rate remains virtually unchanged, moving from 7.06% to 7.06%.
• The Revenue Growth Expectation has edged up modestly, from 5.75% to 5.78%.
• The Net Profit Margin has fallen, decreasing from 13.01% to 12.11%.
• The Future Price/Earnings Ratio (P/E) has increased notably, rising from 20.88x to 23.72x.