Canaccord Genuity Thinks SNC – Lavalin’s Stock is Going to Recover

By Ryan Adsit

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$64 price target.

According to TipRanks.com, Lynk is a 4-star analyst with an average return of 6.1% and a 51.8% success rate. Lynk covers the Basic Materials sector, focusing on stocks such as Badger Daylighting Ltd, North American Energy, and SNC-Lavalin Group Inc.

SNC – Lavalin has an analyst consensus of Strong Buy, with a price target consensus of C$65.25.

Based on SNC – Lavalin’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$1.8 billion and quarterly net profit of C$89.71 million. In comparison, last year the company earned revenue of C$1.94 billion and had a net profit of C$122 million.

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 & Metallurgy, Oil & Gas, Power, Infrastructure and Capital. The Mining & Metallurgy sector combines global-caliber expertise with deep local capabilities to provide tailored solutions for projects of any size, scope or complexity in the aluminium, gold, copper, iron ore, nickel, fertilizers and sulphur product sectors. The Oil & Gas includes projects in the upstream, midstream, downstream and supporting infrastructure sectors for major oil and gas and resources companies. The Power includes projects and services in hydro, nuclear and thermal power generation; renewable power generation; energy from waste; and electrical transmission and distribution systems. The Capital is the investment in certain infrastructure for public services such as airports, bridges, cultural and public service buildings, highways, mass transit systems, power and water treatment facilities. The company was founded in 1911 and is headquartered in Montreal, Canada.

The company’s shares closed last Friday at $51.12, close to its 52-week low of $50.27.