The acquisition allows Intact to become number three in Britain in commercial insurance with 7% of the market. (Photo: 123RF)
What to do with the titles of AtkinsRealis (SNC-Lavalin), Stingray and Intact? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
AtkinsRealis (SNC, $41.70): results stronger than expected
AtkinsRealis (SNC-Lavalin) presented stronger results than ATB Capital Markets had expected in the second quarter, the result of the change in strategy made by the Quebec company.
AtkinsRealis (SNC-Lavalin), which recently changed its name to AtkinsRéalis, reported revenues of $2.13 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) of $183.9 million and earnings per share of $0.49, all above ATB’s forecasts (respectively $1.85 billion, $166 million and $0.37), says analyst Chris Murray.
These results beyond expectations are explained by very strong organic growth (18%), particularly in the Nuclear (11%) and Engineering Services (25%) sectors. Combined with an active order book in the first half of 2023, the management of the Montreal company promptly raised its revenue growth objectives for the 2024 financial year, which increased from a range varying between 5% and 7%. to another between 12% and 15%, underlines the analyst.
He adds that the recent divestment in its Scandinavian engineering services subsidiary to the SYSTRA Group, announced in July, allows it to divest itself of a low-margin activity which, combined with an increase in the price of its services, should enable it to AtkinsRealis (SNC-Lavalin) to bring its margins closer to those of its competitors.
ATB highlights that the company had another strong quarter supported by the predictability of its engineering services sector. The firm sees this as supporting an upward revaluation of the stock, which would allow it to move even closer to the competition.
ATB Capital Markets thus increases its target price for the stock of AtkinsRealis (SNC-Lavalin) from $44 to $48, and maintains its forecast of outperformance compared to its sector of activity.
SNC-Lavalin recently announced the change of its company name to AtkinsRealis. “Note that the stock acronym on the Toronto Stock Exchange will also be changed from “SNC” to “ATRL”. The modification is planned for the session of Monday, September 18.”
Stingray (RAY.A, $5.06): much more than a traditional media stock
