Canadian investors have plenty of reasons to be optimistic right now, with lower interest rates and resilient economic tailwinds creating buying opportunities in undervalued TSX names.
Here are three top TSX picks analysts have spotlighted as stocks boasting 20% or more upside growth potential based on consensus price targets, backed by rock-solid fundamentals.
Source: Getty Images
Kinaxis
If you’re hunting for growth in supply chain tech, Kinaxis (TSX:KXS) is firing on all cylinders.
Trading around $125 per share after a massive sell-off of late thanks to AI-driven concerns in the software space, this is still a stock analysts view with meaningful upside, placing the consensus price target on KXS stock above the $200 level.
Now, much of this valuation discrepancy likely has to do with the company’s recent selloff. Accordingly, I’d expect price targets to come down, if this stock doesn’t recover from here.
That said, I do think there are solid reasons why Kinaxis could recover nicely from here. The company’s RapidResponse platform is sticky as glue, driving recurring revenue with adjusted EBITDA expected to climb to $153 million on $619 million in sales for fiscal 2026. That’s thanks to AI-powered demand forecasting that’s winning big with blue-chip clients.
At just 22 times forward earnings (below its historical average), I think this price target is reasonable, if we see multiples revert back to their longer-term averages over time.
Propel Holdings
Propel Holdings (TSX:PRL) is one fintech disruptor I haven’t covered before, but it’s one I felt compelled to dive into.
Why’s that? Well, the stock chart above paints a relatively similar picture to that of Kinaxis, with shares down despite solid growth in the fintech sector I think investors may want to capitalize on for the long term.
With a consensus price target around $40 per share, there’s plenty of upside to be had if Propel can return to prior valuation multiples and investor sentiment improves. This lender’s tech-driven platform is crushing it, with adjusted earnings forecasted to rocket from $1.64 to $3.84 per share by 2027. These numbers are expected to be fueled by geographic expansion, efficiency gains, and a 25%-plus operating margin on surging revenues.
Trading at a dirt-cheap 5 times forward earnings, Propel’s balance sheet is fortress-like amid credit disruptions, making it a no-brainer for income and growth chasers right now.
EQB Inc.
A more speculative pick, but one that’s undoubtedly undervalued right now, EQB Inc. (TSX:EQB) is an alternative lender and digital bank I do think investors may want to have a look at here.
Now, I’ve been skeptical of EQB in the past, and there are certainly worrying signs in the market right now for companies in the distressed or subprime space. That said, this digital bank’s revenue is set to grow 39.7% annually, with earnings per share (EPS) expected to grow at a better-than-expected 30% rate. That’s impressive, and supposed by the higher net interest margin narrative I think will continue for some time.
Also an AI beneficiary, EQB could see additional share buybacks, which are expected to slash up to 6% of this company’s existing float. That’s a big deal for investors seeking an instant value boost.
Despite recent noise, its ROE recovery and price-earnings valuation multiple expansion potential scream bargain at current levels. I think now is the time to grab shares while this high-growth lender trades like yesterday’s news.
