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To: Goose94 who wrote (163438)10/1/2024 8:13:49 PM
From: Goose94Read Replies (1) | Respond to of 202767
 
Atkinsréalis (ATRL-T) top pick from John Zechner on BNN.ca Market Call Tuesday October 1st

The former SNC-Lavalin Group Inc. is a professional services, and project management company. It delivers end-to-end services across the whole life cycle of an asset including consulting and advisory and environmental services. ATRL’s core Engineering Services Regions and Nuclear segments are well-positioned to continue realizing strong organic revenue growth and margin expansion. Top-line growth is supported by robust backlogs and favourable demand trends, while management is focused on driving margin improvement in engineering services (around 75 per cent of TTM revenue). Nuclear segment is underappreciated in the current valuation and could see potential life extension of the Pickering reactors. Risks as always include possible cost overruns and/or cash outflows associated with LSTK Projects work, a weakening of end-market conditions or failure to deliver improved margins. But the valuation is attractive at 10.7 times and 8.8 times 2024/2025 adjusted EBITDA, a discount compared to Canadian engineering services peers.