SNC-Lavalin Group (TSE: SNC), one of the world’s largest engineering and construction groups, has been awarded a mandate to provide specialized engineering and design services to Eclipse Automation.
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The objective of the mandate is to support the development of Canadian Nuclear Laboratories’ new Advanced Nuclear Materials Research Centre (ANMRC).
Propelling Next-Generation Nuclear Technologies in Canada
Under the contract, worth approximately C$13 million, SNC-Lavalin will design the structures and foundations for 12 shielded hot cells at the new state-of-the-art laboratory research complex in Chalk River, Ontario. The work should last two years.
Once completed, the 12 shielded hot cells will safely allow post-irradiation examination of components of small modular reactors (SMR) components and next-generation nuclear fuels.
With the glovebox facilities they contain, the hot cells will support the development of next-generation nuclear technologies, like new SMR components and advanced fuel fabrication concepts. This technology will support the development and implementation of carbon-free nuclear energy, in support of Net Zero goals.
Management Commentary
“This important mandate demonstrates our team’s trusted ability to deliver key projects across the entire nuclear lifecycle- including outside the operational nuclear power plant market,” said Sandy Taylor, President, Nuclear, SNC-Lavalin.
“While we maintain a leading presence in the new reactor builds, reactor maintenance and life extension, and decommissioning and waste management spaces, we are also strongly positioned to provide customized engineering and design solutions for nuclear research laboratories that directly support innovation. Through leveraging our decades of global experience in nuclear plant design, we are uniquely qualified to partner with Eclipse in developing a key component of this state-of-the-art research facility, that will propel next-generation nuclear technologies in Canada.”
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 38.1% 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$42.67 implies upside potential of 51.1% to current levels.
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