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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Post by Gabrielon Apr 18, 2024 8:13pm
138 Views
Post# 35997104

More on the CIBC target revision

More on the CIBC target revision

CIBC’s Jacob Bout increased his target for shares of Aecon Group Inc. (ARE-T) to $22 from $21 with an “outperformer” rating. The average is $18.17. “We continue to expect the drag from legacy projects on earnings/cash flow to be much lower in 2024/2025, and strong operating performance across the rest of its core construction business,” said Mr. Bout. “We are raising our 2025 estimates (2024E unchanged) to reflect the recent award of the U.S. Virgin Islands airports redevelopment that will reach financial close in Q1/25. We increase our sum-of-the-parts price target from $21 to $22 (based on a 4.5 times Construction and 9 times Utilities EV/EBITDA target multiple to our 2025 segment EBITDA estimates, plus Concessions) and maintain our Outperformer rating. Note, we are currently holding the U.S. Virgin Islands Concession at book value given the early stages of the project.”

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