Stantec updated March 5, 2018

Stantec is updated and rated Buy at CAN $32.22 or U.S. $25.05 (It was analysed at the previous closing price, it closed today at $32.42 and U.S. $25.05). Stantec has been a prodigious creator of wealth over the years but the stock has been relatively flat in recent years. It made a very large acquisition in 2016 that turned it into a global company. That large acquisition has not yet led to the expected increase in earnings per share. In Q4 in particular there were cost overruns on some projects in the acquired business. If, as expected, Stantec has now overcome these issues in 2018 then the earnings and share price could rise noticeably. I continue to have faith that the stock will resume its historic upward trend. However any unexpected continuation of material project difficulties into 2018 would likely send the stock lower.