WSP Global is updated and rated (lower) Sell at $162.67. A reasonable strategy might be to sell half.
WSP has grown by acquisitions from a relatively small Canadian engineering consulting company into a global giant still head quartered in Canada. It has basically not made a major mis-step in a decade or more. The stock has done extremely well. As a result of the past success and a current strong growth outlook it trades at a rather rich multiple of about 40 times trailing earnings and 30 times analyst-projected forward earnings. That valuation would suggest a rating of Sell unless it is assumed that the P/E ratio will remain quite elevated – driven by continued strong growth. I was inclined to rate it Sell based on the valuation but decided on (lower) Sell in respect of its past success. Perhaps selling half would be a reasonable approach.
I look at Linamar which I updated yesterday trading at 8.5 times earnings and marvel at the contrast in valuation. But Linamar is indeed far more cyclic while the market prefers more predictable companies.