RBC Dominion Securities Inc. analyst Drew McReynolds has upgraded Manitoba Telecom Services Inc. (MBT-T33.700.010.03%) to “outperform,” commenting that the telecom’s ability to generate low-single-digit earnings before interest, taxes, depreciation and amortization proves business fundamentals “have turned the corner.” He believes MTS’s valuation compared to peers is attractive and the cash and debt on its balance sheets provides flexibility.

Upside: Mr. McReynolds raised his price target by $3 to $35.