SNC-Lavalin Group Inc (SNC), an integrated professional services and project management company, has been mandated by U.S. company Dexcom to help build a major high-tech manufacturing facility in Malaysia. The facility will produce continuous glucose monitoring (CGM) systems for the management of diabetes.
As part of the agreement with Dexcom, a global leader in SGC technology, SNC-Lavalin will provide project control and construction management services for Dexcom’s facility in Penang, Malaysia, in collaboration with international and local consultants, from concept development to design, including construction and commissioning.
SNC-Lavalin President and CEO Ian L. Edwards said, “With more than 30 years of experience in the pharmaceutical, biotechnology and medical device market, this contract is in line with our forward strategy to continue growing our high potential core services business in Asia Pacific where we have a long history and strong presence. This project showcases the value we bring our clients, leveraging our global capabilities and local delivery across the infrastructure sector, and our strong track record serving some of the most reputable brands in the medical and healthcare sector.”
The project will be delivered on an accelerated basis within 18 months from construction to completion. (See SNC-Lavalin Group stock charts on TipRanks)
Last month, BMO Capital analyst Devin Dodge maintained a Hold rating on SNC with a C$33.00 price target. This implies 1.76% upside potential.
Dodge believes that the revaluation potential does not compensate for the risks of setbacks represented by fixed-price contracts yet to be completed, the expenses required by certain projects, and its joint ventures.
The rest of the Street is optimistic about SNC with a Strong Buy consensus rating based on 8 Buys and 1 Hold. The average SNC-Lavalin price target of C$40.37 implies 24.5% upside potential to current levels.
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