Drivers for growth for Aecon (and SNC) Touting “supportive” industry fundamentals, its “strong” backlog with upside potential and expecting its profitability to “remain healthy,” Industrial Alliance Securities analyst Naji Baydoun assumed coverage of Aecon Group Inc. (ARE-T) with a “buy” recommendation on Tuesday.
“Overall, we view the current macro-economic context as highly supportive of further infrastructure investments in Canada, driven by (1) an expected economic rebound in 2021-22, supported by government fiscal stimulus measures for infrastructure, (2) low/stable interest rates, which should stimulate investments in large-scale, capital-intensive infrastructure projects (via availability of low cost financing), and (3) an infrastructure investment gap that supports further long-term investments in the sector,” he said.