Canaccord Genuity Reaffirms Their Buy Rating on SNC – Lavalin

By Austin Angelo

Today, an analyst has provided a rating update for the Materials sector company, SNC – Lavalin (TSX: SNC). Analyst Yuri Lynk from Canaccord Genuity rated SNC – Lavalin (TSX: SNC) a Buy, setting a C$73 price target.

Lynk observed:

“We reiterate our BUY rating and C$73.00 one-year target price on SNC-Lavalin (SNC) shares following solid Q2/18 results from 407 International Inc. (Highway 407), including another dividend increase. We believe SNC affords investors a compelling growth and value proposition at current levels. On our 2018 E&C adjusted EPS estimate, SNC trades at 11.5x, excluding Capital, compared to its peers (Fluor, Jacobs, Stantec, the group’s mid-cycle forward multiple of ~14x. This discount seems unwarranted for a company with best-in-class EPS growth potential in 2018 (based on the mid-point of guidance), the second best ROIC, a strong balance sheet (0.6x pro forma debt/ EBITDA), and a rising backlog.”

Lynk has an average return of 5.7% when recommending SNC – Lavalin.

According to TipRanks.com, Lynk is ranked #605 out of 4842 analysts.

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Currently, the analyst consensus on SNC – Lavalin is a Strong Buy with an average price target of C$71.25.

The company has a one-year high of C$61.54 and a one-year low of C$50.87. Currently, SNC – Lavalin has an average volume of 360.7K.

SNC-Lavalin Group, Inc. engages in the provision of engineering and construction services. It offers engineering, procurement, construction, project management, project financing services to industry sectors. The company operates through the following segments: Mining and Metallurgy, Oil and Gas, Power, Infrastructure, Atkins, and Capital.

The company’s shares closed on Thursday at C$56.91.