AtkinsRéalis Group Inc.ATRL.TOTOP PICKMar 23, 2017Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
Doesn't agree that AI is going to ruin construction businesses. The design portion of projects may be streamlined through AI, such as accelerating gathering data, but the fundamental narrative doesn't change. The Build Canada projects must be good for construction companies.
Not a sector he'd play, but it's OK at these levels.
Tremendous run, and now some engineering firms are under pressure. A laggard. You want to own things people really care about, and he's been very selective and carving out underperformers.
Midterm election years tend to have weakness in June, July, August. We'll see. Market breadth is not ideal right now. Look for better opportunities.
Very strong portfolio of engineering and design and consulting. Plays into infrastructure, energy, and environment. Focus on nuclear will be important, with 15% of revenue coming from there. If Hwy 407 were sold at a good price, would be a catalyst to create value (but he wouldn't buy something just because there might be a deal down the road). Yield is 0.1%.
(Analysts’ price target is $70.31)
They had problems in the past but now he likes it going forward. He bought early, but it has worked out for him. They continue to get lots of contracts. Most recently it has sold off and is now the cheapest engineering and construction company in North America. This is because they have an inefficient balance sheet. The market expects them to make a large acquisition and take on lots of debt and that it will hurt them. He expects them to buy back stock. An acquisition would be good for them, making the balance sheet more efficient. It is cheap here. They still own highway 407 where the value continues to go up and up. There is not a lot of goodwill built in here. (Analysts’ target: $64.00).