Stock price when the opinion was issued
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)
Many companies in the nuclear space are either government entities or divisions of larger companies. But for E&P companies, SNC has significant industry experience and it has won several contracts in various countries this year. As an indirect play on the sector, it works, and it has a big backlog. It has not been our favourite company, for various growth reasons and scandals, but things have improved immensely and very strong earnings growth is now expected. It is not 'cheap' at 27X earnings but for a nuclear-focused investor we think it has some attractions.
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