Meta’s Muse rally lifts a TSX-linked stock 13% in a week

The Week in Stocks: Rising bond yields are pressuring utilities, a REIT has halted its cash distribution, and Meta’s AI push is stirring investor interest.

Meta’s latest AI launch is doing more than generating buzz: it’s helping drive a sharp move in the company’s shares. Meta Platforms Inc. (META:Nasdaq) climbed nearly 13 per cent this week and was nearing a US$2-trillion market value by Friday, extending gains that began after the Sept. 8 release of its AI agent, Muse.

Meta chief executive Mark Zuckerberg presents the Muse Charm device at the Meta Connect event in Menlo Park, California, on Sept. 23, 2026. Photo by Minh Connors/Bloomberg files.

Devices extend the Muse bet

At an event Wednesday, Meta introduced several new devices built around Muse. TD Cowen analyst John Blackledge responded by raising his price target to US$865 from US$750. He also said Muse had risen to the top of Apple Inc.’s App Store rankings since its launch. That’s a meaningful signal of early attention, though app rankings alone don’t show whether users will stick around or whether the product will generate lasting business value.

Meta shares closed Friday at US$751.66. Bloomberg’s consensus 12-month price target, based on estimates from 62 analysts, is US$787.68. The gap between that consensus and Blackledge’s higher target shows how much expectations can vary even as investors respond to the Muse momentum.

Here’s the complication: the rally met a legal setback on Friday. A New Mexico court ruled that Meta violated state laws in connection with Facebook user data and the Cambridge Analytica scandal of the 2010s, Bloomberg reported. The shares pulled back after the ruling. The market’s enthusiasm for Muse is clear; how much weight investors will ultimately give the case is less so.

For investors tracking the company, the week captures both sides of the story: a new AI product and hardware push are attracting attention, while legal exposure remains part of the risk picture.

Meta Platforms Inc.

How Shopify is looking to ride the Muse wave

Shopify shares gained 13 per cent this week, putting the stock among the S&P/TSX Composite’s strongest performers. The catalyst was chief executive Tobias Lutke’s announcement of a partnership with Meta’s Muse AI agent. The market appears to be weighing the possibility that Shopify could become a checkout channel for purchases initiated by AI agents. Stifel U.S. Equity Research managing director J. Parker Lane described the deal as positioning Shopify as “a key checkout rail” across its merchant base in a Sept. 22 note. Stifel’s price target is $253.27; Shopify closed Friday at $201.20. The strategic opportunity is clear, though the partnership’s eventual contribution to sales remains uncertain.

Bond yields put pressure on utility valuations

The utility story is less encouraging. Multi-decade highs in longer-term U.S. and Canadian bond yields are lifting borrowing costs and weighing on the sector, CIBC Capital Markets analysts said in a Sept. 21 note. They pointed to the U.S. 10-year yield as a historically strong signal of utilities’ relative performance: when it rises, utilities have tended to lag. Since last July, the S&P/TSX utilities sub-index has fallen just over 11 per cent.

There’s another force working against the group. Higher oil prices may be pulling investors toward energy and away from defensive shares such as utilities. CIBC said a recovery in utility performance may have to wait until at least one of those signals turns. That’s a useful reminder that the sector faces pressure from both financing costs and shifting investor appetite.

CIBC lowered its price targets across the Canadian utilities it covers, while warning that exposure to debt costs varies by company. Emera Inc. (EMA:TSX) was identified as the most vulnerable because of its debt profile; CIBC cut its target to $72 from $76. The shares closed Friday at $67.48. Atco Ltd. (ACO/X:TSX), Hydro One Ltd. (H:TSX) and Canadian Utilities Ltd. (CU:TSX) could see “modest” earnings-per-share gains as regulated rates reset in Alberta and Ontario, the analysts said. Even after the sector’s decline, Canadian utilities trade at a 27 per cent premium to the S&P/TSX Composite, according to CIBC. That valuation leaves little room to ignore the rate headwind.

Slate Grocery REIT cuts its distribution

The steep selloff in Slate Grocery REIT shows how quickly rising borrowing costs can change the income story for a property trust. Its shares fell nearly 35 per cent this week after management unexpectedly suspended the cash distribution, TD Cowen analyst Sam Damiani wrote on Sept. 24. The REIT had yielded eight per cent at the Sept. 23 close. Damiani pointed to higher government bond yields and Slate’s refinancing schedule: 66 per cent of its debt matures by 2028. CIBC estimates that refinancing at higher rates could add $14 million in costs from 2026 through 2028. That pressure gives the distribution cut a clear financial rationale, though the announcement’s timing and the eventual cost of refinancing remain uncertain. Slate is also reviewing its strategy and seeking interest in a possible sale. Analysts took sharply different views of the shares: Damiani kept a $12 target, while ATB Cormark’s Sairam Srinivas called the distribution elimination “significant and negative” and lowered his target to $8 from $13. Slate closed Friday at $10.75. For income focused investors, the immediate question is whether the review can unlock value after the loss of the payout.

Analysts adjust targets across sectors

The week’s target changes were mixed, with several analysts holding their views while others responded to company specific developments. - TD Cowen’s Craig Hutchison kept his $8 target on Trilogy Metals Inc. (TMQ:TSX), citing a “de-risking milestone” for its flagship Arctic project. Shares closed Friday at $4.54. - RBC Capital Markets’ Harrison Reynolds maintained a $60 target on Artemis Gold Inc. (ARTG:TSX) after it announced the purchase of Vista Gold Corp. (TSX: VGZ). Artemis closed at $40.20. - UBS Global Research’s Dennis Geiger cut his target on [McDonald’s Corp.](https://financialpost.com/tag/mcdonalds-corp/) (MCD:NYSE) to US$320 from US$340. He said management’s plan to increase U.S. sales made the risk and reward attractive despite investor concerns about pressured sales trends. The shares closed at US$236.50. - Raymond James’ Frederic Bastien raised his target on [Bird Construction Inc.](https://financialpost.com/tag/bird-construction/) (BDT:TSX) to $90 from $75, citing strong second quarter results and an expected catalyst rich finish to the year. Bird closed at $79.20. - TD Cowen resumed coverage of [Primaris REIT](https://financialpost.com/tag/primaris-retail-real-estate-investment-trust/) (PMZ/U:TSX). Sam Damiani assigned a buy rating and a $25 target; shares closed at $21.73. - Raymond James’ Brian MacArthur increased his target on Elemental Royalty Corp. (ELE:TSX) to $35 from $33 after its deal to acquire a portfolio of precious metal assets. Shares closed at $29.35. - RBC Capital Markets’ Michael Harvey began coverage of Spartan Delta Corp. (SDE:TSX) with an outperform rating and a $17 target, pointing to its position in the West Shale Duvernay deposit and its seasoned management team. Shares closed at $12.90. Target changes capture analysts’ expectations, but they’re not outcomes. The Slate cut is the week’s clearest reminder that financing needs can quickly outweigh a high headline yield.