The Globe and Mail reports in its Tuesday, June 22, edition that Canaccord Genuity analyst Yuri Lynk believes the global environmental consulting market is "poised for growth" as environmental, social, and governance (ESG) considerations take on added importance. The Globe's David Leeder writes that Mr. Lynk says in a note: "In our view, the consulting engineers under coverage are uniquely positioned to deliver sustainable solutions that are increasingly required to 'green' the global economy and infrastructure. We view the transition to a low-carbon, circular economy as one of the most compelling mega-trends for investors. As such, we are reiterating our 'buy' ratings on SNC-Lavalin, Stantec, and WSP Global and increasing our target prices across the board. As consolidators operating in the fragmented, $200-billion (U.S.) global design market, we see upside potential beyond our published estimates stemming from future acquisitions." Mr. Lynk boosted his share target for SNC-Lavalin to $46 from $44. Analysts on average target SNC shares at $39. Mr. Lynk adds, "SNC remains a compelling turnaround story as its exposure to loss-making lump-sum turnkey contracts diminishes with each passing quarter."
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