The Globe and Mail reports in its Tuesday, Nov. 11, edition that Scotia Capital analyst Jonathan Goldman continues to rate NFI Group "sector outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Goldman gave his share target a $3 trim to $19. Analysts on average target the shares at $20.83. Mr. Goldman says in a note: "We found the commentary on the call about the battery recall constructive. Management did not provide a number for obvious reasons, namely that a tentative term sheet has been signed with the supplier and negotiations are ongoing to finalize an agreement. But both parties are 'motivated' to consummate a deal by year-end and management expects the size of the provision ($230-million) to 'dramatically decrease.' We ran two scenarios -- one based on management commentary and one based on precedent transactions -- which suggests that the final impact to NFI could be in the range of $40-million to $70-million, pretax, which we think would be viewed positively relative to what the equity is discounting. For context, NFI's market cap is off $500-million since first disclosing the issue in September."
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