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

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Aecon Group Inc (ARE.TO)

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43.58

-0.07 (0.16%)

as of Jun 18, 2026, 4:54:23 pm Market Open.

427 watching

Investor Insights

Jun 18, 2026, 12:00 am

This summary was created by AI, based on 20 opinions in the last 12 months.

Aecon Group Inc (ARE-T) is currently navigating a landscape shaped by significant infrastructure investment in Canada, reflected in a record backlog of $10.9 billion. Despite strong revenue growth of 18% last quarter, experts advise caution due to prevailing market volatility and concerns over cost overruns from legacy fixed-price contracts. Many analysts highlight the company's shift towards more sustainable fee-for-service contracts and variable pricing, which enhance cash flow predictability and earnings stability. With ongoing projects in nuclear power and increasing demand for infrastructure, Aecon is poised for potential growth, although some perceive the stock as overbought at its current levels. Overall, experts remain optimistic about its long-term prospects while acknowledging near-term market pressures and volatility.

Consensus

Hold

Valuation

Fair Value

Similar

WSP

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)

WATCH

Infrastructure projects are likely to be announced as we come out of COVID but we have not seen them yet. When this comes, ARE-T should do very well. (Analysts’ price target is $20.61)

PAST TOP PICK

(A Top Pick Aug 01/19, Down 25%) People are concerned about construction levels, but ARE will do okay. He stopped out.

DON'T BUY

An engineering construction company. They own someone else in the space. The sector has had a slow down with COVID-19. She is not sure that the company's percentage of construction exposure, as cost over runs can impact the company having to take charges. It should be an attractive business in the long run, but she sees other alternatives.

COMMENT

BAM vs ARE? He likes BAM and it is a core holding. They are involved in infrastructure with great cash flowing assets. In a low interest rate environment it will continue to do well. ARE is benefiting from taking on fixed pay contracts, which he views as being a little more risky. He would favour BAM.

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Aecon Group Inc (ARE.TO)