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TSX Rallies; Bombardier Ups 2025 Targets; Ontario Budget Due

Published 2023-03-23, 11:50 a/m
© Reuters
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By Ketki Saxena 

Investing.com – The TSX tracked Wall Street higher this afternoon, as North American equities advanced with investor hopes growing for a pause from the Federal Reserve, after a muted 25 bp move from the central bank yesterday. 

The commodity heavy Canadian index was also supported by gains in crude and metals, as the prospect of a relatively less hawkish eased worries of global growth fostered by the banking crisis. 

The Biggest Stories on Bay Street 

Bombardier (TSX:BBDb) has upped its revenue targets and objectives for 2023,  “based on strong business execution and confidence in business fundamentals''. Bombardier is now targeting revenue of US$9bln in 2025, up from US$7.5bln. The company also increased its 2025 target for adjusted earnings for interest, taxes, depreciation and amortization (EBITDA) to US$1.625bn from US$1.5bn.Bombardier also forecast free cash flow of  US$900 million by 2025, compared to its previous expectation of about US$500 million.

A day after receiving an open letter of recommendations from activist investor  Engine Capital's, Parkland (TSX:PKI) has announced an agreement with Simpson Oil, its largest shareholder that owns about 19% of shares outstanding. The agreement is set to “furthers the longstanding and successful relationship” between the two firms, as per a press release by Parkland. The agreement will give Simpson the right to nominate up to two nominees to the board. In the release, Parkland also noted it “will not speculate on the coincidental timing of activist letter in conjunction with today's announced agreement with Simpson Oil. “

Canadian Stocks Moving Markets Today

Top Gainers: 

  • Bombardier
  • Ballard (TSX:BLDP)
  • Converge Tech (TSX:CTS)

Top Losers: 

  • Capstone Mining (TSX:CS)
  • BELLUS Health Inc. (TSX:BLU)
  • Parkland Corporation

In Canadian Economics 

Ontario’s provincial budget for 2023 will be released today, delivered by Ontario finance minister Peter Bethlenfalvy around 4 p.m. ET at Queen’s Park. Bethlenfalvy  has previously hinted that the budget’s vision will focus on attracting jobs and building projects, in line with Premier Doug Ford's infrastructure-focused government.For the third quarter 2022, Ontario’s government's deficit outlook halved from the previous quarter from $13 billion to $6.5 billion. Ontario also completed the 2021-2022 fiscal year with a surprise $2.1 billion surplus, despite forecasting a $33 billion deficit in the 2021 budget.

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