Three Canadian stocks analysts think could double

Markets have been choppy, but billionaire investor Bill Ackman sees the potential for a much stronger backdrop in 2027.

Speaking with CNBC on Oct. 22, the Pershing Square CEO said wars in Ukraine and Iran, alongside elevated inflation and interest rates, were holding back markets. His optimism rests partly on those pressures easing: progress toward peace could bring lower energy prices, helping inflation and improving conditions for stocks.

“We’re going to have an amazing 2027,” Ackman said.

For investors looking at Canadian stocks, that outlook provides a reason to examine companies whose growth prospects analysts believe are being undervalued.

Recent Cantech Letter coverage highlights three names across different industries: MDA Space, Decibel Cannabis and Black Swan Graphene. Each has received a “Buy” rating and an analyst target presented as offering approximately 100% upside or more at the time of the original coverage.

Their investment cases depend on company-specific execution, from expanding satellite production to growing international cannabis sales and commercializing graphene. Here is what the analysts see.

MDA Space

Beacon Securities analyst Russell Stanley reiterated his “Buy” rating and $88.00 target on MDA Space (MDA Space Stock Quote, Chart, News, Analysts, Financials TSX:MDA) in an Oct. 13 update following Czechoslovak Group’s acquisition of a 9.5% stake.

Stanley viewed the investment as an endorsement of MDA’s growth prospects. The Czech defence and engineering group identified potential opportunities for European manufacturing investments, acquisitions and introductions to its customers.

The investment adds another dimension to MDA’s expansion across commercial and government space markets. Stanley said the stock traded at 13 times his fiscal 2027 adjusted EBITDA estimate, a substantial discount to space peers Intuitive Machines and Redwire.

He forecasts revenue rising from $1.83-billion in fiscal 2026 to $2.84-billion in fiscal 2027, with adjusted EBITDA increasing from $347-million to $562-million.

Potential catalysts include additional contract wins, third-quarter results in November and progress on acquisitions. Cantech Letter’s Oct. 14 coverage characterized Stanley’s target as offering a potential double.

Decibel Cannabis

Haywood Capital Markets analyst Neal Gilmer maintained his “Buy” rating and $3.75 target on Decibel Cannabis (Decibel Cannabis Stock Quote, Chart, News, Analysts, Financials TSXV:DB) in an Oct. 21 update, pointing to international growth and a valuation discount.

The update followed investment manager Ewing Morris’s offer to purchase up to 2.6 million shares at $1.91 each. The offer represented a 16.4% premium to Decibel’s 20-day volume-weighted average price when announced.

Gilmer said the proposed purchase could attract greater institutional attention to a company with limited trading liquidity. He also highlighted Decibel’s market-share gains and expanding international cannabis business.

Decibel traded at 3.1 times his estimated fiscal 2027 EBITDA, compared with 5.1 times for peers. He forecasts fiscal 2026 revenue of $137.4-million and adjusted EBITDA of $30.7-million, rising to $155.7-million and $35.4-million, respectively, in fiscal 2027.

His $3.75 target is based on 1.3 times estimated fiscal 2027 revenue, discounted at 15%. Cantech Letter’s coverage presented the stock as a potential double.

Black Swan Graphene

Paradigm Capital analyst Marvin Wolff maintained his “Buy” rating and $2.50 target on Black Swan Graphene (Black Swan Graphene Stock Quote, Chart, News, Analysts, Financials TSXV:SWAN)  in a Sept. 21 update. Cantech Letter’s coverage reported potential upside of approximately 200%.

Wolff highlighted second-quarter revenue of $1.75-million, ahead of his $1.25-million forecast, as the company builds its graphene business.

A central part of his thesis is Black Swan’s acquisition of Falpaco Rubber and Plastic. The transaction provides an established injection-moulding operation and a customer base for graphene-enhanced materials, giving Black Swan more control over adoption of its products.

Wolff expects revenue to increase from $5.5-million in fiscal 2026 to $10.4-million in fiscal 2027, although he forecasts negative adjusted EBITDA in both years.

His valuation depends on a longer growth runway: the $2.50 target applies a 10 times enterprise-value-to-EBITDA multiple to his 2030 EBITDA forecast of $27.6-million, discounted by 10% annually. That makes commercialization and the pace of customer adoption central to the investment case.