07:54 AM EST, 03/08/2024 (MT Newswires) -- Dexterra Group Inc. (DXT.TO) was downgraded to Hold from Buy at TD Securities on Friday.
Analyst Aaron MacNeil lowered his price target on shares of the Canadian facilities management, workforce accommodations, modular construction, forestry, and energy services company to $6 from $7.50.
Dexterra reported Q4 results after market close on Thursday.
"With the planned disposition of MS and continued margin challenges for IFM, its Workforce Accommodations, Forestry and Energy Services (WAFES) segment will increasingly drive overall corporate profitability going forward," MacNeil said in a note to clients.
"This segment has meaningful oil and gas cyclical exposure that typically commands a lower valuation multiple when compared with its diversified industrial peers," the analyst said.
"Additionally, several of the large infrastructure projects that Dexterra had exposure to (LNG Canada) are nearing completion, creating risk in go-forward revenue generation," MacNeil said.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)