Desjardins Reaffirms Their Buy Rating on Calian Group Ltd.

By Jason Carr

Calian Group Ltd. (TSX: CGY), the Services sector company was revisited on June 13, and remains undervalued for at least one analyst on the street. Desjardins’ analyst Benoit Poirier reiterates their Buy rating on the shares, with a C$31 price target.

According to TipRanks.com, Poirier is a 5-star analyst with an average return of 8.4% and a 66.5% success rate. Poirier covers the Services sector, focusing on stocks such as Canadian Railway, Canadian Pacific, and Stantec Inc.

Calian Group Ltd. has an analyst consensus of Moderate Buy, with a price target consensus of C$32.

Based on Calian Group Ltd.’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$67.06 million and quarterly net profit of C$4.19 million. In comparison, last year the company earned revenue of C$68.1 million and had a net profit of C$3.26 million.

Calian Group Ltd. provides business and technology services to industry and government in Canada and around the world. The company operates through two business segments: Systems Engineering and Business & Technology Services. The Systems Engineering division plans, designs and implements solutions to meet clients specific business and technical needs for many of the world’s space agencies and communications satellite manufacturers and operators. The Business and Technology Services division provides Training, IT and Healthcare delivery solutions as well as national workforce management capability via strategic long-term outsourcing services, recruiting and placement services, and per-diem staffing services. The company was founded by Lawrence Robert O’Brien on September 27, 1982 and is headquartered in Ottawa, Canada.

The company’s shares closed last Thursday at $25.92.