SNC-Lavalin (SNC-T) revisited 2.0 top pick from Brian Madden on BNN.ca Friday Sept 10th @ 1200ET
SNC-Lavalin provides engineering, design, procurement and project management services, serving clients in the nuclear energy, natural resource and infrastructure sectors, among others. A unique differentiator for SNC relative to its rivals is its principal investments portfolio, which allows it to co-invest in infrastructure projects alongside its clients, with the largest and most notable example being the 407 toll road north of Toronto.
Under entirely new leadership the last few years, the company has moved to de-risk its business model, is running off troublesome fixed price contracts quickly and divesting its oil and gas business. With a $13B project backlog and with governments increasingly earmarking funds for civic infrastructure renewal, we foresee strong earnings growth ahead and view the shares as reasonably priced, trading at 17x 2022 expected earnings. |
