Research Alert: Wsp Maintained At Buy On Trc Integration And Ebitda Margin Expansion: Tp Cad271
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Buy (4-STARS) rating on WSP, as it trades at historic discounts on a forward earnings and EBITDA basis. We reduced our target price to CAD271 from CAD283. We value WSP at an average of 13x our 2027 EBITDA estimate and 22x our 2027 EPS view. We increase our 2026 adjusted EPS forecast to CAD11.31 (up by CAD0.20) and our 2027 adjusted EPS estimate to CAD12.02 (up by CAD0.21). Both multiples are currently under the lower band relative to the peer group by 2.2-2.8 standard deviations. We consider the valuation to be a buying opportunity on a company that is expanding its EBITDA margin continually and growing inorganically. Additionally, we are encouraged by the growing impact the U.S. Power & Energy segment has on the direction of the business, with ~30% of U.S. revenues.
