The Globe and Mail reports in its Friday, June 7, edition that National Bank Financial analyst Maxim Sytchev is keeping his "outperform" call and $61 share target for Atkinsrealis Group intact. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $62.45. Mr. Sytchev says in a note: "Until recently, Atkinsrealis earnings have been extremely volatile which, among other factors, understandably restrained the multiple investors [who] were willing to pay for the shares. Since 2021, however, core earnings (adjusted EPS ex. capital contributions) have remained in positive territory and have grown steadily to an expected $2.28 over the next four quarters and stepping up to $2.54 in 2025. Shares have continued to rally, advancing an additional 27 per cent year-to-date, which has helped narrow Atkinsrealis's valuation gap to peers. ... There is nothing 'easy' when it comes to winding down a construction business that has been a core of an 'A to Z' market approach to project securement." Mr. Sytchev thinks a noticeable improvement in both free cash flow and generation is "key" to calming investor concern about the Montreal-based company, formerly known as SNC-Lavalin Group.
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