RE:RE:RE:RE:RE:RE:RE:RE:Legacy Projects Impact on FY24 Here is Her ( RBC) response
Morning Henry
As a reminder, we're independent from RBC Capital Markets and frankly I can't &/ unable to give you details on why there was a lack of participation in the Q&A section of the earnings call.
It's possible that RBC analyst was on the line, but his questions were raised by other analysts. Who knows ~
Like I have mentioned & provided this chart below last week, I can confirm that RBCCM is the street low with a price target of $16 per share.
The analyst previously had a price target of $13, but raised it posts the stronger- than- expected Q1 print.
As to why RBCCM is less optimistic, it comes down to ARE 's exposure to their fixed contracts &/ or their risks related to the recoveries of these contracts.
It is in the research report provided last week and that's what makes a market.
Overall Henry... the question is... where are we in this economic cycle.?
Narrative of a soft landing has grown over the last few months and the BoC is projected to cut rates in either June or July.
All in, stocks have re-rated higher, especially the under own and the under love names ( cyclicals) .
This of course includes ARE & or group (SNC - Lavalin, Stantec,WSP, etc...)
Stock is now trading at ~ 16 x forward earnings, a premium to its 5 - year average.
Hope this helps ~
Are you enjoying this lovely spring weather... lol
Talk soon ~