Wajax Corporation: Balancing Strong Performance with Industry Uncertainty and Competitive Pressures

Analyst Devin Dodge of BMO Capital maintained a Hold rating on Wajax Corporation (WJX – Research Report), boosting the price target to C$22.00.

Devin Dodge has given his Hold rating due to a combination of factors influencing Wajax Corporation’s current market position. The company’s Q1/25 results exceeded expectations, showcasing management’s ability to handle challenging market conditions. However, despite the strong performance, the industry remains difficult, with limited visibility into near-term demand, which adds an element of uncertainty.
While the valuation of Wajax Corporation is considered reasonable, the stock’s multiple is expected to stay at the lower end of its historical range. Financial leverage has improved but is still above the targeted range, indicating ongoing efforts to reduce debt. Additionally, while there are benefits from the relationship with Hitachi and solid activity in the mining and energy sectors, other markets have softened, and competitive pricing pressures have increased. These factors collectively contribute to the Hold rating, as they suggest a balanced risk-reward scenario for investors.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WJX in relation to earlier this year.