Three Canadian stocks analysts love right now

Medical apparel, digital lending and mobile security offer three different growth stories, but analysts covering iFabric, Propel Holdings and Zedcor see reasons to remain bullish. All three companies carry “Buy” ratings in recent research updates, with analysts pointing to expanding distribution, a changing revenue mix and additional financing capacity.

iFabric

Beacon Securities analyst Doug Cooper maintained his “Buy” rating and $9.50 target on iFabric (iFabric Stock Quote, Chart, News, Analysts, Financials TSX:IFA) in an Oct. 13 update, saying the company’s medical scrubs business remains early in its growth trajectory.

Cooper pointed to the rally in U.S. medical apparel company FIGS as evidence of investor interest in the category. He sees room for iFabric to expand through retailers including Walmart U.S., Target, Costco Canada and Amazon.ca, supported by products offering antimicrobial properties and protection against liquids.

Scrubs account for about 20% to 25% of iFabric’s sales, but Cooper considers the segment its strongest growth opportunity.

“We believe IFA’s medical scrubs brands are very early in their life-cycle with most relevant consumers unaware of their offering,” he said.

Cooper forecasts revenue of $62-million and Adjusted EBITDA of $7.2-million in fiscal 2026, rising to $87.1-million and $14.6-million, respectively, in fiscal 2027. At 1.4 times his fiscal 2027 sales estimate, iFabric trades at a substantial discount to FIGS.

Propel Holdings

TD Cowen analyst Graham Ryding, meanwhile, maintained his “Buy” rating and $37.00 target on Propel Holdings (Propel Holdings Stock Quote, Chart, News, Analysts, Financials  TSX:PRL), highlighting the growing contribution from its lending-as-a-service and MoneyKey Bank Service programs.

As reported by the Globe and Mail, those programs generated 28% of Propel’s revenue in Q2 2026, compared with a historical average of 20%.

“We expect this capital-lighter revenue mix shift to continue, pushing the revenue yield higher,” Ryding said.

He expects some of that benefit to be offset by higher credit provisioning, operating expenses and interest costs.

Propel’s second-quarter revenue increased 26% year-over-year to US$179.6-million, while Adjusted EBITDA rose 24% to US$43.7-million. Adjusted net income climbed 29% to US$24.8-million.

The company also increased its annualized dividend to $1.02 per share from 96 cents, marking its 12th consecutive quarterly increase.

Propel is scheduled to report third-quarter results after markets close Nov. 3, with a conference call the following morning.

Zedcor

At Zedcor (Zedcor Stock Quote, Chart, News, Analysts, Financials TSX:ZDC), Paradigm Capital analyst Alexandra Ricci sees an expanded credit facility supporting the company’s next stage of growth.

In an Oct. 14 update, Ricci maintained her “Buy” rating and $7.60 target after National Bank increased Zedcor’s committed facility to $100-million from $75-million. An additional $50-million uncommitted accordion could bring potential borrowing capacity to $150-million.

Ricci said the financing gives Zedcor room to expand its tower fleet without issuing equity and positions it to fund growth into 2027.

Production is running at about 45 to 50 towers weekly, with capacity to reach roughly 300 monthly following its Houston consolidation. Zedcor operates 19 branches and is targeting approximately 26 over the next year.

Ricci sees an attractive entry point as U.S. expansion and Canadian demand support growth. Shares trade at 10.5 times her 2027 EV/EBITDA estimate, compared with about 14 times last year.