
TSE:STN
We see no specific news here other than the items mentioned in the question. We can't comment on personal weightings but it is about a 2% position in our model growth portfolio. We still like it, but would like it more at $78/9.
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Stantec Inc (STN) stock was up 12.11% in the period; 23.03% YTD and 28.54% for one year.
On February 22, 2023, strong results for the year ended December 31, 2022, were announced: net revenue at $4.46 billion was up 22.6% over the prior year; Net income at $247 million ($2.22 per diluted share) was up 23% and adjusted EBITDA at $723.9 million was up 26%. Management remains very optimistic that a strong multi-year cycle is ahead.
In the US, significant federal funding is starting to be dispersed from a variety of Federal Acts such as the Infrastructure Investment and Jobs Act (IIJA).
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STN has staged a nice recovery, and we like it.
ARE's recent results were good, but it has had fixed-price contract issues in the past, and it is much smaller than the other two.
WSP has executed well, has a strong backlog, made good acquisitions and has a global presence.
We also like its recent forays into ESG consulting.
WSP would be our choice, even at a more expensive valuation.
We think $168 to $170 would be an attractive range.
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Sharpened its focus and expanded exposure to environmental and water. He's been adding, if needed, to rebalance portfolios. Add a half position now, add more on weakness.