16:40:58 EDT Sat 20 Apr 2019
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Stuart Olson Inc
Symbol C : SOX
Shares Issued 27,783,097
Close 2019-03-07 C$ 4.15
Recent Sedar Documents

Globe says Stuart Olson lowered to "hold" from "buy"

2019-03-08 07:52 ET - In the News

The Globe and Mail reports in its Friday, March 8, edition that Canaccord Genuity analyst Yuri Lynk cut Stuart Olson ($4.15) to "hold" from "buy." The Globe's David Leeder writes that Mr. Lynk trimmed his share target by $3.50 to $4.50. Analysts on average target the shares at $5.75. Mr. Lynk says in a note: "Most worrying to us is management's plan to pursue large, design-build (DB) projects. Here we have a contractor that traditionally pursues construction management (CM) assignments, which are cost reimbursable, that is going to compete for large, DB contracts, which are fixed price. Doing DB work is very different from CM in terms of how it is pursued, how risk is managed, and how one deals with the client during the length of the contract. With just 0.7 per cent of its backlog represented by DB projects, we don't have a track record of success (yet) to provide us with the comfort that these new risks can be managed. ... It is uncharacteristic of us to downgrade a stock following a negative surprise that causes material share price weakness. However, that's exactly what we are doing following the 15-per-cent drop in Stuart Olson's share price in reaction to a 50-per-cent cut to the dividend."

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