-- Stifel Canada on Wednesday reiterated its hold rating on the shares of Aecon Group (ARE.TO) and its C$44.50 price target following the engineering and construction company's first-quarter results.
"In 1Q26, Aecon delivered a 10.9% revenue beat and 19.7% EBITDA beat relative to consensus, but we are categorizing it as a neutral quarter. 1Q26 only accounts for ~9% of full year EBITDA (thus the absolute beat is only a modest positive) and the full year outlook remains unchanged. Additionally, the stock has increased 53.8% YTD (S&P/TSX: +5.9%) and the valuation is full at 25.2x 2027E P/E (10Y avg: 14.6x, N.A. peer group average: 22.5x). Valuation remains the basis for our HOLD rating and that view is unchanged, but we believe the company remains well positioned to benefit from Canadian government spending on nuclear, defense work and infrastructure," analyst Ian Gillies wrote.
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