OTCPK:CUUHF - Post by User
Post by
theorlandoon Feb 06, 2019 10:43am
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Post# 29325859
Globe says "good upside" seen at Stuart Olson
Globe says "good upside" seen at Stuart Olson 2019-01-22 08:20 ET - In the News
The Globe and Mail reports in its Tuesday, Jan. 22, edition that Raymond James analyst Frederic Bastien is "constructive on construction" for 2019 in a research report on the industry released Monday. The Globe's David Leeder writes in the Eye On Equities column that Mr. Bastien says in a note: "These predominantly small-cap stocks derive significant business from Canada's resources markets, making them more cyclical than the more diversified pure-play engineers we cover. They also work on far fewer projects, which invariably increases concentration and execution risks. In short, while they collaborate closely along the E&C value chain, contractors and engineers appeal to very different investor bases. We should add that construction projects tend to be much longer dated than engineering and design assignments. This generally provides contractors with greater visibility into future operating performance (for better or worse)." Mr. Bastien sees "good upside" in Stuart Olson ($5.69) "now that some U.S.-based activist shareholders are campaigning to shake up the board and crystallize value in the stock." He rates the shares "outperform," with a $7 target. Analysts on average target the shares at $7.
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