The Globe and Mail reports in its Tuesday, April 20, edition that Canaccord Genuity analyst Yuri Lynk thinks the "lingering" impacts of the COVID-19 pandemic are likely to weigh on first quarter 2021 results for Canadian engineering firms. The Globe's David Leeder writes in the Eye On Equities column that Mr. Lynk, however, says he sees the macro backdrop improving, "setting the stage for growth in 2022." He sees President Biden's proposed eight-year infrastructure spending bill "dramatically boosting the growth outlook." He concedes there are risks as to "what the final U.S. infrastructure bill will look like if and when it gets passed." Mr. Lynk reiterated his "buy" recommendation and $40 share target for SNC-Lavalin Group. Analysts on average target the shares at $33.38. Mr. Lynk says in a note: "Its SNCL Engineering Services segment generates a little more than 20 per cent of its revenue in the U.S. SNC is particularly well positioned in transportation and hazardous waste where ENR ranks it No. 9 and No. 11, respectively, on its Top U.S. Design Firms list." The Globe reported on Jan. 11 that National Bank analyst Maxim Sytchev continued to rate SNC "outperform." The shares were then worth $22.25.
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