Canaccord Raises TargetAfter sponsoring a non-deal roadshow in Montreal on Sept. 19, Canaccord Genuity’s Yuri Lynk raised his Aecon Group Inc. target to $28 from $25 with a “buy” rating. The average is $21.27. “Despite its shares delivering a total return of over 55 per cent year-to-date, we continue to see compelling upside potential,” he said. “Firstly, Aecon’s financial results are poised to inflect as legacy lump sum turnkey (LSTK) loss-making contracts roll off over the next year and five progressive design-build contracts, which carry less risk than LSTK, come into, and potentially double, backlog in 2025. Secondly, Aecon Construction’s underlying TTM [trailing 12-month] EBITDA margin (after corporate costs) of 6.7 per cent is above most peers and should attract a higher EV/EBITDA valuation multiple once financial performance improves versus the 5.0 times EV/EBITDA (2025E) the market presently assigns. Lastly, we see the opportunity for Aecon’s successful concessions team to add significant value given the new awards profile of that business.”