SNC-Lavalin Enters Strategic Partnership with MBC Group

SNC-Lavalin Group (TSE: SNC), one of the world’s largest engineering and construction groups, announced Wednesday that it has established a strategic collaboration with MBC Group, an engineering services company with a leading presence in Western Canada.

Loss Prevention and Climate Recovery Solutions

SNC-Lavalin will provide engineering and project management services combined with MBC’s expertise in property damage assessment, risk management, and environmental consulting to serve customers in the insurance market.

The two companies will jointly identify opportunities and propose solutions to strengthen the resilience, as well as disaster recovery, of buildings and infrastructure and their recovery from the increasingly severe effects of climate change and extreme weather events.

CEO Commentary

SNC-Lavalin president and CEO Ian L. Edwards said, “This collaboration is perfectly aligned with and further enhances SNC-Lavalin’s ability to offer integrated, end-to-end solutions to create sustainable, resilient infrastructure to meet the demands climate change is placing on our society. We’ve seen extreme weather events increasing in frequency and severity- particularly in Western Canada. Immediate action is therefore required to ensure infrastructure- both existing and disaster recovery rebuilds- is fortified to withstand the stresses of a changing climate that are with us already. These efforts must also be accompanied by a decarbonization of the built environment, to avert the most catastrophic effects of climate change on our communities in the long term.”

Wall Street’s Take

On February 14, RBC Capital analyst Sabahat Khan kept a Buy rating on SNC and lowered its price target to C$39 (from C$42). This implies 36.8% upside potential.

Overall, consensus among Wall Street analysts is that SNC is a Strong Buy based on three Buys. The average SNC-Lavalin price target of C$42.73 implies upside potential of 49.9% to current levels.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.