Analyst Devin Dodge from BMO Capital maintained a Buy rating on AtkinsRealis (SNCAF – Research Report) and increased the price target to C$84.00 from C$82.00.
Devin Dodge has given his Buy rating due to a combination of factors that highlight the potential for AtkinsRealis to deliver strong returns. One of the key drivers is the company’s robust performance in its Services business, which is showing promising growth prospects. Additionally, the sale of its remaining stake in Highway 407 has provided a significant boost to its net asset value (NAV), offering substantial financial resources that can be strategically reinvested.
Despite some challenges in the Q4/24 results, particularly related to losses from LSTK projects, the underlying financial performance excluding these losses was in line with or slightly ahead of expectations. The outlook for 2025 remains positive, with consistent growth in the Engineering Services sector and improvements in the Nuclear division. The sale of Highway 407 not only enhances the company’s financial position but also supports its capital allocation priorities, such as debt repayment and potential share buybacks, which further justifies the Buy rating.