RBC Capital Markets raised its price target on Finning International Inc. (FTT.TO) to $89 from $67 on Thursday.

Analyst Sabahat Khan maintained an Outperform rating on shares of the Canadian industrial equipment dealer specializing in Caterpillar products, following its quarterly results.

The stock rose 4.5% to $77.85 on the Toronto Stock Exchange.

"Finning reported Q3 results well ahead of consensus across the board, with revenue +14% YoY and Adjusted EBIT margin at 8.4% (+69bps YoY; GM% was -170bps YoY, which was more than offset by lower SG&A costs)," Khan said in a note to clients.

"...We view Q3 results positively and see the business as continuing to be well-positioned going forward (outlook slightly improved at the margin across Finning's regions; e.g., Canada's construction backlog up meaningfully YoY)," the analyst said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)