Downgrading to HOLD from Buy: Going to the Sidelines as We Await Growth Signs

Research evidence excerpt

Downgrading to HOLD from Buy: Going to the Sidelines as We Await Growth Signs

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illumin Holdings Inc.

TD SECURITIES INC. - CANADA RATING CHANGE

May 11, 2026

Price: C$0.85 (05/8/2026) Downgrading to HOLD from Buy: Going to the

Price Target: C$0.90 (Prior C$1.25) Sidelines as We Await Growth Signs

HOLD (2)

FROM BUY (1)

ESG SCORE: 71/100

Vince Valentini, CFA^ THE TD COWEN INSIGHT

416 944 7012

We are downgrading ILLM to HOLD from Buy and reducing our target price to $0.90 from

vince.valentini@tdsecurities.com

$1.25. Following the return of CEO Tal Hayek, we are cautiously optimistic about a turnaround

Natale Puccia, CFA^ at ILLM. However, we believe a turnaround may take time given the reorganizing of the sales

416 983 6399 structure before we see results. ILLM maintains $37M in cash, which we believe helps protect

natale.puccia@tdsecurities.com

against any future downside risk.

Carter Sullivan, CPA^

416 983 3954 Event: ILLM reported Q1/26 results on March 8.

carter.sullivan@tdsecurities.com

Impact: SLIGHTLY NEGATIVE to the short term share price.

Key Data

Symbol TSX: ILLM-T We believe that growth at illumin can be unlocked over time and that they maintain the right

12-Month Div (Est.): C$0.00 assets to drive organic growth with the potential to layer in inorganic growth on top. However,

Beta: 1.17 ILLM requires an update to its sales structure as it attempts to bring on larger accounts that

12-Month Total can make a spending difference. The restructuring of the sales function has started following

5.9%

Return: some layoffs in Q1, and we believe that a few quarters are needed to build the pipeline. We

52-Week Range: C$2.35-C$0.77 would need to see a couple of quarters of good growth before we can become more optimistic

Market Cap: C$47.5MM on ILLM shares.