12:37 PM EDT, 04/25/2024 (MT Newswires) -- National Bank has raised its target on Aecon Group ( AEGXF ) to $18 (from $15) and reiterated its Sector Perform rating after the company reported its Q1 2024 results.

2024 will be a transition year and after factoring in recent divestures, pro-forma (organic) revenue growth is expected to be flat to slightly up for the full year, writes analyst Maxim Sytchev.

Top-line growth is expected to pick up as the five major collaborative projects (including the $10+ billion OnCorr) are added to the backlog and start contributing to the P&L. While this will help stabilize margins, large, complex projects still carry inherent execution risks, Sytchev notes. Management also continues on its business development quest in power in the US but any deal appears to be bite-sized.

Price: 17.28, Change: +0.57, Percent Change: +3.41