North American Construction downgraded to Hold from Buy at Canaccord

Canaccord analyst Yuri Lynk downgraded last night North American Construction (NOA) to Hold from Buy with a price target of C$24.50, down from C$33. The firm believes there could be structural issues negatively impacting the company’s business in Canada. Weakness in North American Construction’s “once stable” Canadian oil sands business does not appear to be rebounding materially, the analyst tells investors in a research note. Canaccord also expects a modest negative cost reforecast on the company’s Fargo-Moorhead project. It believes North American Construction needs more consistency to warrant a higher valuation.