The Globe and Mail
Globe says risk of writedowns seen at Aecon Group
2023-04-28 07:27 ET - In the News
The Globe and Mail reports in its Friday, April 28, edition that Desjardins Securities analyst Benoit Poirier, in response to "slightly weaker-than-expected" quarterly results, trimmed his share target for Aecon Group by $2 to $19, while maintaining his rating at "buy." The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $16.32. Mr. Poirier says in a note: "The uncertainty around free cash flow and the resolution of claims could be a concern for investors in the short term, but we remain open-minded regarding Aecon Group's future as the four problematic contracts will be largely completed by the start of next year. However, at the end of the day, this is construction and the risk of further writedowns remains given the size and complexity of the projects." The Globe reported on March 17 that Canaccord Genuity analyst Yuri Lynk had recommended avoiding Aecon when it was worth $13.42. The Globe reported on April 13 that Raymond James analyst Frederic Bastien had reiterated his "outperform" recommendation for Aecon Group. He said, "Aecon is miles ahead of the competition when it comes to sustainable construction." The shares could then be had for $13.69.