The Globe and Mail reports in its Friday, June 13, edition that Stifel analyst Ian Gillies has reaffirmed his "buy" recommendation for WSP Global. The Globe's Tim Shufelt writes in the Eye On Equities column that Mr. Gillies tweaked his share target ahead by $5 to $305. On Thursday, WSP Global said it has struck a deal to buy British transport and energy consulting firm Ricardo PLC for about $670-million, at current exchange rates. Ricardo had been under pressure from an activist investor unhappy with the company's performance. Mr. Gillies says, "We believe the business has the potential to deliver margins close to WSP once the underperforming segments are divested." The divisions that could be slated for divestiture include the automotive and industrial as well as the performance products units. Ricardo's rail as well as the environmental and energy segments appear to be much stronger. Combined they are expected to generate 53 per cent of Ricardo's revenue and 65 per cent of operating profit in the current fiscal year. Mr. Gillies adds, "[WSP's] valuation is expensive (for a reason), but we continue to like the stock given its defensive qualities and its leading M&A platform."