The Globe and Mail reports in its Saturday edition that National Bank analyst Maxim Sytchev says in a research report examining 2021 macro themes for Canadian industrial products companies: "First the negatives rates are low, but sentiment could shift swiftly. Commodity momentum sustainability is in question once supply constraints fade. State and local funding prospects in the U.S. remain unclear given a polarized government. That said, we view Pete Buttigieg's appointment as transportation czar as a positive for infra-exposed names. Geopolitical risks remain as the United States and China continue to grapple with a deteriorating bilateral relationship. Then the positives, healthy balance sheets afford M&A and NCIB optionality; strong backlogs underpin near-term revenue generation. Engineers have the ability to right-size office space for additional efficiencies while enjoying the ESG tailwinds."
The Globe's David Leeder writes that accordingly, Mr. Sytchev boosted his share target for SNC-Lavalin Group to $34.50 from $34. Analysts on average target the shares at $32.27. Mr. Sytchev rates SNC "outperform." The Globe reported on March 31 that Mr. Sytchev kept SNC at "outperform." It was then worth $18.97.
© 2021 Canjex Publishing Ltd. All rights reserved.