Balanced Risk/Reward Scenario Leads to Hold Rating for Wajax Corporation Amid Mixed Outlook

In a report released yesterday, Devin Dodge from BMO Capital maintained a Hold rating on Wajax Corporation, with a price target of C$27.00.

Devin Dodge has given his Hold rating due to a combination of factors that present a balanced risk/reward scenario for Wajax Corporation. The company’s recent performance showed better-than-expected results in Q3/25, with adjusted EPS and EBIT surpassing forecasts, primarily due to improved gross margins. However, revenue growth was flat, and while there were gains in certain regions like Central Canada, other areas such as Eastern Canada experienced declines.
Despite the improved cost performance and operational efficiencies, the outlook remains mixed, with strong activity in the mining and energy sectors but subdued levels in other markets. The company’s cost discipline and execution have positioned it well for future operating leverage, yet inventory levels are high, and competitive pricing pressures persist. Although the valuation is considered undemanding, the visibility into a potential re-rating is unclear, leading to the Hold recommendation.

Dodge covers the Industrials sector, focusing on stocks such as Waste Connections, Waste Management, and Wajax Corporation. According to TipRanks, Dodge has an average return of 13.9% and a 71.27% success rate on recommended stocks.