BMO Capital Markets Forecasts Strong Price Appreciation for Aecon Group (TSE:ARE) Stock

Key Points

• BMO Capital Markets raised its price target on Aecon from C$40.00 to C$45.00 and kept an "outperform" rating, implying about a 7.7% upside from the prior close.
• Several other brokers also lifted targets (RBC to C$41, Desjardins and National Bank to C$45), but the consensus remains a Hold with an average target of C$42.38 (4 Buys, 6 Holds).
• Aecon traded around C$41.77 (market cap C$2.68B) while sporting a very high P/E (~181.6) and a thin net margin (0.28%), indicating rich valuation relative to current profitability.

Aecon Group (TSE:ARE - Get Free Report) had its target price upped by equities research analysts at BMO Capital Markets from C$40.00 to C$45.00 in a report released on Monday,BayStreet.CA reports. The firm presently has an "outperform" rating on the stock. BMO Capital Markets' price target would suggest a potential upside of 7.73% from the stock's previous close.

Several other research firms have also commented on ARE. Royal Bank Of Canada increased their price target on shares of Aecon Group from C$30.00 to C$41.00 and gave the company a "sector perform" rating in a research report on Tuesday, March 10th. ATB Cormark Capital Markets upped their target price on Aecon Group from C$35.00 to C$39.00 and gave the company a "sector perform" rating in a research note on Monday, March 9th. Desjardins increased their target price on Aecon Group from C$43.00 to C$45.00 and gave the company a "hold" rating in a report on Monday. Stifel Nicolaus dropped their price target on Aecon Group from C$34.25 to C$28.75 and set a "hold" rating for the company in a research report on Monday, March 9th. Finally, National Bank Financial boosted their price target on Aecon Group from C$35.00 to C$45.00 and gave the stock an "outperform" rating in a report on Monday, March 9th. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Aecon Group has an average rating of "Hold" and an average target price of C$42.38.

Aecon Group Price Performance

Shares of ARE stock traded down C$0.02 during mid-day trading on Monday, reaching C$41.77. The stock had a trading volume of 278,558 shares, compared to its average volume of 494,785. The company has a market cap of C$2.68 billion, a P/E ratio of 181.61, a price-to-earnings-growth ratio of 18.18 and a beta of 1.10. The company has a current ratio of 1.10, a quick ratio of 1.27 and a debt-to-equity ratio of 65.17. Aecon Group has a 12-month low of C$15.21 and a 12-month high of C$44.71. The business has a 50-day simple moving average of C$38.07 and a 200 day simple moving average of C$31.49.

Aecon Group (TSE:ARE - Get Free Report) last issued its quarterly earnings data on Thursday, March 5th. The company reported C$0.52 EPS for the quarter. Aecon Group had a net margin of 0.28% and a return on equity of 1.66%. The firm had revenue of C$1.54 billion for the quarter. On average, sell-side analysts anticipate that Aecon Group will post 1.3793321 earnings per share for the current year.

Aecon Group Company Profile

Aecon Group Inc is a Canada-based company that operates in two segments: Construction and Concessions. The Construction segment includes various aspects of the construction of public and private infrastructure projects, mainly in the transportation sector. Its concessions segment is engaged in the development, financing, construction, and operation of infrastructure projects. Aecon generates the majority of its revenue from the Construction segment.

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