Aecon Group Inc (ARE.TO) Buy, Sell or Hold

Aecon Group Inc (ARE.TO)

52.95

-0.03 (0.06%)

as of Nov 6, 2026, 9:00:00 pm Market Closed.

426 watching

BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced earnings last week and although EPS beat, revenu missed. Investors are worried about slowing revenue growth. There was a sharp decline in share price, but the infrastructure spending is a tailwind. Okay for a long-term investment. Unlock Premium - Try 5i Free

TOP PICK

Have seen many new highs in stocks in the same group. Will benefit from the trillion dollar infrastructure bill. Pays a 3.2% dividend yield. Cashflow has grown significantly to $110M. Very attractive 12.3x cashflow yield. Sales up 27%, cashflow up 124%. Earnings estimates were bumped up by 9%. (Analysts’ price target is $23.54)

PAST TOP PICK

(A Top Pick Aug 18/20, Up 46%) Finally showing its true value. Ongoing demand for their expertise. Likes cashflow and dividend record. Continues to buy for clients.

PARTIAL BUY

The lockdown in the second quarter brought fear into the projects that Aecon is working on. There is also a global picture where infrastructure projects are coming. One of the better plays for the long term with the infrastructure spending.

BUY

It is in his model portfolio. Sooner or later he has been expecting some government infrastructure spending. The stock is not all that expensive. It has a nice balance sheet and has a decent yield. It is the type of thing you tuck away.

PARTIAL BUY

ARE-T vs. BIP.UN-T. He is happy with both. In terms of catalysts, ARE-T looks to be the more undervalued of the two. He thinks things will get more positive for it after the pandemic. It is a smaller company and could move farther. BIP.UN-T bought cell phone towers in India and are trying to take over IPL-T. He would average in to either one.

PARTIAL BUY

Allan Tong’s Discover Picks Meanwhile, the 3.67% dividend yield is safe, based on a 48.56% payout ratio (the industry number is 55.73%). Tailwinds are the company’s C$5.91 billion backlog at the Biden plan. Last Thursday, the company reported Q1 revenues of $754 million vs. the street’s $708.6 million, and the street likes this story as ARE stocks bumped up shares over 2% on Monday past $19. There are five buys and two holds with an average price target of $21.79. Read 2 Rising Canadian Price Targets: AltaGas & Aecon for our full analysis.

TOP PICK

Has a $1B market cap. A play on Canadian infrastructure spending. The yield is decent around 4%. Trades at 5x enterprise value to EBITDA. Trades at a 34% discount to US comparables. 97% growth expected this year, with a PE of less than 16x. Could see a 2-3x upside if it breaks $23. (Analysts’ price target is $20.59)

HOLD

Decent valuation at 13x 2021. Modelling 2021 earnings being 10% higher than last year. It pays a dividend to pay. Always a question on backlog. China was trying to buy this asset around $19. Can have a meaningful upside since it is not too crowded. Continue to hold it.

WEAK BUY

She has WSP-T instead because it is only a consulting company. Construction is where these companies would get into problems. WSP-N just bought a company in environmental services in the US and this is a very attractive market to be in. She would buy it after a pull back.

TOP PICK

It has good strong upside potential and from a technical point of view it looks like it is just about to break out above one times book value. It has a nice balance sheet. It is a nice value stock. Infrastructure spending in the US would also move this stock up higher. (Analysts’ price target is $19.86)

BUY

Aecon has grown backlog significantly, continues to beat on results, and yields nearly 5%. Aecon will benefit from any increase in infrastructure spending.

BUY

He's a big believer in infrastructure investment. In US, irrespective how the election goes, there will be a big commitment to infrastructure. ARE has a record high quality backlog. It's a matter of execution at this point. He's positive on the infrastructure boom in both Canada and US. Stock has upside potential.

HOLD

He's surprised it trades below $14. Their business is defensive and they have the highest backlog they have ever had. Investors are probably discounting the company for the concessions they have made. These assets are good long-term value providers but it is weighing on the stock price. They just need to continue to do what they are doing.

TOP PICK

Puzzling. ARE wasn't effected either way by the pandemic. They had a $7.5 billion backlog, an all-time high when the stock is at a 5-year low. Puzzling why this stock hasn't taken off. Perhaps the confessions on the Bermuda airport and Toronto's Eglinton LRT project have hurt them, but will be valuable down the road. Their base business is growing profits, revenues and cash flow. Pays over a 4% dividend. ARE is overlooked. (Analysts’ price target is $19.95)

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Aecon Group Inc (ARE.TO)