09:38 AM EDT, 05/02/2024 (MT Newswires) -- Stifel GMP on Thursday reiterated its buy rating on the shares of Stantec ( STN ) while raising its price target to C$132.00 from C$130.00 after the engineering and design company closed its latest acquisition.

"Stantec ( STN ) announced that it has closed its third acquisition in 2024, adding 950 staff to its workforce for a Stifel estimated purchase price of $246 mm. Year to date, STN has added 2,700 employees to its 4Q23 headcount of 28,000, or 9.6% of its workforce. We estimate the transaction increases STN's EBITDA by 1.9% and 2.7% in 2024E and 2025E, while our target price is increased to $132 from $130. STN's M&A strategy has been focused on bolt-on acquisitions this year, which should carry a lower level of risk, in our view. Post this transaction, we estimate the 23-25E EPS CAGR is at 20.0%, which leaves us comfortable with the current valuation of 20.9x 2025 P/E. We continue to have a very favourable view on this stock, especially given there is ample dry powder remaining on top of a robust M&A pipeline," analyst Ian Gillies wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 111.90, Change: +1.24, Percent Change: +1.12