
TSE:ATRL
This summary was created by AI, based on 10 opinions in the last 12 months.
AtkinsRéalis Group Inc. (ATRL-T) has garnered mixed opinions from experts. Many express concerns over the impact of AI on the engineering sector, suggesting that fears of AI replacing human jobs are overstated. While the company's involvement in nuclear technology is seen as a positive factor, there is caution regarding its stock price amidst a challenging market for engineering firms. Some analysts highlight the potential long-term benefits from Canadian government construction projects, although others propose that other firms, such as Stantec, may be better positioned for growth. Overall, while ATRL has underperformed in the short term, there is a belief that its current valuation may offer a valuable buying opportunity, particularly given its nuclear exposure and a steady backlog of projects.
He is not a big fan of bottom fishing. Buy it at a new high, not a low. It could be a value trap. He does not follow this company closely. He prefers WSP-T.
Opening comment The Caisse just reacted very negatively to SNC Lavalin this morning (https://www.newswire.ca/news-releases/caisse-reaction-to-snc-lavalin-statement-823828177.html). SNC's biggest shareholder is losing patience with SNC's management. SNC has been struggling with many issues for a while, but has started address them, like selling their stake in the 407 highway. Now, they are re-evaluing their divisions. SNC has failed to find successful strategies to rescue their business lines and this has failed to stabilize their price, but it hasn't. Caisse want the board to act now, and TD warns that SNC's just-announced strategic direction may not satisfy those fast enough. A strategic review results in selling a division, an entire company or no change at all. Some investors call for cancelling some fixed-price, long-term contracts that risk cost overruns (i.e. steel prices labour costs). There could be job losses in Quebec.
WSP Global is pretty much the gold standard. They are pretty much 100% consulting, whereas STN-T and SNC-T are not. He has shied away from the whole sector. The problem is the engineering and construction business, which he has never liked. Margins are razor thin. STN-T wants to get away from E&C. He would buy WSP-T on a correction. STN-T might be a buy at some other point. SNC-T he stays way from and has done so for many years.