Aecon Group Maintained at Buy at Stifel GMP as Says Company is its Top Trade Idea; Price Target Raised to C$30.00
12:13 PM EDT, 09/09/2024 (MT Newswires) -- Stifel GMP on Monday reiterated its buy rating on the shares of Aecon Group (ARE.TO) while raising its price target to C$30.00 from C$25.00 after naming the engineering and design company as its top trade idea.
"We are highlighting ARE as the top trade idea in our coverage heading into YE 2024 given the potential upside the stock offers driven by significantly improved earnings certainty on meaningfully lower project risks. We have identified a midpoint value of $30/sh, using a scenario on 2026E normalized proportionate (adj.)/accounting EBITDA of $434 mm/$357 mm. This would imply the company's current EV/accounting EBITDA to be 4.8x, compared to the peer group in 2025E at 6.2x. We have made no estimate changes in this update. However, we are taking our TP to $30.00/sh (prior: $25.00/sh) with a view to 2026, while reiterating our BUY rating," analyst Ian Gillies wrote.
(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)
Price: 19.10, Change: +0.54, Percent Change: +2.91