Wall Street analyst has provided a review for the Materials company today, but retained the same rating on the stock. Analyst Yuri Lynk from Canaccord Genuity rated Aecon Group Inc. (TSX: ARE) a Buy, setting a C$22 price target.
Lynk said:
“We are reiterating our BUY rating and C$22.00 one-year target price on Aecon shares. Besides being, in our view, undervalued, Aecon boasts best-in-class backlog growth. The resulting revenue visibility has never been better for this company with several major projects in backlog stretching out through the early 2020s. We must also mention Aecon’s attractive 3.3% dividend yield, strong balance sheet (0.3x net debt/TTM EBITDA), and potential “hidden value” in its concession portfolio. Investment highlights Notwithstanding our bullishness, we concede that Q2/2018 results are unlikely to be a catalyst for the stock. Aecon is scheduled to release Q2/2018 results on the close of the financial markets.”
According to TipRanks.com, Lynk is ranked #585 out of 4843 analysts.
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Aecon Group Inc. has an analyst consensus of Moderate Buy, with a price target consensus of C$18.58, implying a 23.2% upside from current levels. In a report issued on July 4, CIBC also reiterated a Buy rating on the stock with a C$20 price target.
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Based on Aecon Group Inc.’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of C$19.25 million. In comparison, last year the company had a net profit of C$807K.
Aecon Group, Inc. engages in construction and infrastructure development. It operates through the following segments: Infrastructure, Industrial, and Concessions. The Infrastructure segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and on a selected basis, internationally.
The company’s shares closed on Monday at C$15.08, close to its 52-week low of C$14.13.
