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Industrial alliance had Aecon as top pick in 2021.
https://apple.news/Aiw8ZEA5BQbmkqszulW0Qgg
Backlog is double with the recent wins, EBITDA margins are close to double excluding the depleting LSTKs which should minimally impact earnings forward.
The firm’s selections are:
Aecon Group Inc. (ARE-T, “strong buy” rating, $24 target)
Mr. Linsdell: “Aecon was initially impacted during the pandemic lockdown as certain provinces halted construction activity and as the airport in Bermuda, which Aecon runs, halted flights. Although no projects in the Company’s backlog have been cancelled, only delayed, the shares have continued to trade below pre-pandemic levels. With a current backlog of $6.7-billion and active bid pipeline of over $40-billion, we see the Company as well positioned for the next few years, with the flexibility to pick and choose which projects to bid on, which reduces the need to take on risky or lower-margin contracts. In addition, we expect that the Canadian government will once again turn to infrastructure projects to help revive the economy post-pandemic, providing even more opportunities for Aecon over the coming years.”