The Globe and Mail reports in its Tuesday, May 4, edition that iA Capital Markets analyst Naji Baydoun commenced coverage of Bird Construction with a "buy" recommendation on Monday. The Globe's David Leeder writes that Mr. Baydoun says industry fundamentals are "favourable." He says he expects a "solid" backlog and the integration of its recent acquisition of Stuart Olson to "support sustainable growth." Mr. Baydoun set a share target of $11.50. Analysts on average target the shares at $10.94. Mr. Baydoun says in a note: "Overall, we view the current macro-economic environment as being supportive of further infrastructure investments in Canada, driven by (1) strong economic growth in 2021-22, supported by public fiscal stimulus measures for infrastructure, (2) low/stable interest rates, which should support investments in large-scale, capital-intensive infrastructure projects, and (3) a significant infrastructure investment gap that should support long-term investments in the sector. ... We see significant upside potential to the current share price. As the company continues to execute on its growth strategy, we see the potential for the shares to experience a positive valuation rerating over time."
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