Meta Platforms Inc. shares jumped nearly 13% this week, pushing the company closer to a $2 trillion market capitalization milestone. The rally followed the release of its artificial intelligence agent, Muse, which has since topped Apple’s app store rankings. Analysts at TD Cowen raised their price target to $865 from $750 after Meta unveiled new devices tied to the AI tool during an event Wednesday.
Muse’s rapid adoption has drawn attention from partners and competitors alike. Shopify Inc. (SHOP:TSX) shares also rose 13% after announcing a collaboration with Meta’s AI agent. The move positions Shopify as a potential platform for agent-driven purchases, according to J. Parker Lane, managing director at Stifel U.S. Equity Research. Stifel has set a price target of $253.27 for Shopify, though shares closed Friday at $201.20.
The surge in Meta’s stock comes despite lingering legal challenges. A New Mexico court ruled Friday that Meta violated state laws related to Facebook user data in the Cambridge Analytica scandal. The decision weighed on shares, which closed at $751.66—down from their recent highs. Analysts still project a 12-month average price target of $787.68, according to Bloomberg.
While Meta’s AI push drives optimism, rising bond yields are creating headwinds for other sectors. Canadian utility stocks have struggled as the U.S. 10-year yield hit multi-decade highs, pressuring borrowing costs. The S&P/TSX utilities sub-index has fallen over 11% since last July, and CIBC Capital Markets analysts warn that higher rates could further strain companies with significant debt exposure.
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Emera Inc. (EMA:TSX) faces the steepest cuts, with CIBC reducing its price target to $72 from $76 due to debt sensitivity. Other utilities like Atco Ltd. (ACO/X:TSX) and Hydro One Ltd. (H:TSX) may see modest earnings gains from regulated rate adjustments, but the broader sector remains under pressure. Despite the pullback, Canadian utilities still trade at a premium of 27% over the S&P/TSX composite.
Debt concerns also hit Slate Grocery REIT (SGR/U:TSX), which saw shares tumble 35% after suspending its cash distribution. The move followed a strategic review and refinancing challenges, with TD Cowen estimating higher borrowing costs could add $14 million in expenses through 2028. Analysts have sharply lowered price targets—Sam Damiani at TD Cowen now sees $12, while ATB Cormark’s Sairam Srinivas cut his to $8.
The week’s gains were not limited to tech and AI plays. Trilogy Metals Inc. (TMQ:TSX) held steady after hitting a project milestone, while Artemis Gold Inc. (ARTG:TSX) saw a price target increase following its acquisition of Vista Gold Corp.
Utilities Targets Cut and Slate REIT Faces Refinancing Pressure
TD Cowen assigned a price target of $12 to Slate Grocery REIT. Analysts believe the move responds to the recent rise in the government bond yield curve. About 66 percent of the REIT’s debt matures through 2028, according to Damiani. CIBC estimates refinancing at higher rates could add roughly $14 million in expenses between 2026 and 2028. Slate is conducting a strategic review that includes exploring interest in a potential sale.
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