Opinions
Christine Poole
WSP Global Inc.
WSP-T
TOP PICK
Dec 16, 2024
Stock price when the opinion was issued
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A global engineering consultant infrastructure, with 45% in the US and under 20% in Canada. They grow by aquisition while organic growth was 8% last quarter. They just bought a private US company involved its utilities. They issued equity, though. They grow its topline 10% annually over 10 years. The street likes the deal, though the price may be high. Synergies should pay off.
Big holding for him. He prefers the infrastructure builders to the owners. Lots of $$ being spent building infrastructure, and a bit more leverage in the earnings. Significant position in US power consulting with its latest acquisition; they'll be the largest in the US in this arena.
Considered it for a Top Pick today. Technical setup is very good. Winning company, and the sector has a tailwind.
High quality. Stock's done well on good execution. Canadian engineering firms have a strong business model in Canada, and they're continuing to expand outside Canada; lots of opportunities to do well. He holds STN instead.
Buy a bit now. If price goes up, you'll be happy you got in earlier. If price goes down, buy a bit more to average down. Nothing wrong with the name, you can own for a long time.
Canadian-based, but less than 20% of revenue from Canada. Attractive and achievable 3-year targets to grow margins, earnings, revenue base, and free cashflow. Strong demand for services. Not exposed to tariffs. Very strong balance sheet to take advantage of M&A opportunities. She'd buy here.
Really solid earnings the other day. Targets are way higher than what the street expected. Great numbers in growth and free cashflow. Sector is immune from tariffs. 24x PE for 2026, growing at 15%. Don't be a hero, wait to get it at a lower level.
All their end markets are doing well: infrastructure, transportation, property, buildings, advisory services, design. Canada makes up less than 20% of revenue, so they are international. It grows 68% organically. Buying POWER Engineers will give them the leading access to the US power market, so WSP will participate in the energy transition as utilities face more energy demand as data centres build out. Integration is going well.
(Analysts’ price target is $280.07)