Stantec (STN – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Devin Dodge from BMO Capital maintained a Buy rating on the stock and has a C$145.00 price target.
Devin Dodge has given his Buy rating due to a combination of factors that highlight Stantec’s strong performance and promising outlook. The company concluded 2024 on a high note, and this momentum is anticipated to continue into 2025. There is potential for Stantec to surpass current estimates, particularly through its core business and strategic mergers and acquisitions. Despite a recent increase in share price, Stantec’s valuation compared to its peers remains attractive, supporting an Outperform rating.
Stantec is well-positioned to benefit from ongoing demand trends in infrastructure, energy transition, climate change, and reshoring. The company has demonstrated robust order intake and maintains a strong backlog in both Canada and the US, providing clear visibility into future activity levels. Stantec’s strategic plan targets significant revenue and earnings growth through 2026, and the company is on track to meet or exceed these goals. Additionally, Stantec’s solid balance sheet allows for substantial M&A activity without financial strain, further enhancing its growth prospects.
According to TipRanks, Dodge is a 5-star analyst with an average return of 11.0% and a 69.66% success rate. Dodge covers the Industrials sector, focusing on stocks such as Stantec, GFL Environmental, and Clean Harbors.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$138.00 price target.