-- Analysts at RBC Capital Markets, CIBC Capital Markets and TD Securities raised their price targets on Aecon Group Inc. (ARE.TO) on Thursday.
The Canadian construction and infrastructure company reported Q1 results on Wednesday.
Aecon shares rose $1.87, or 3.9%, to $49.97 on the Toronto Stock Exchange.
RBC analyst Sabahat Khan increased his target on the stock to $49 from $44, and maintained a Sector Perform rating.
"Overall, a good start to 2026 with record backlog of $10.9 Billion providing for a favourable setup," Khan said in a note to clients.
"As top-line trends higher, over the medium-term, we will be keeping an eye on margin progression (as the company moves beyond the legacy projects)."
CIBC Analyst Krista Friesen raised her price target to $52 from $48, and maintained a Neutral rating.
"We view (Wednesday's) move as a reflection of a shift in investor focus toward the opportunities ahead rather than the operational issues that have weighed on the business in recent quarters," Friesen said in a note to clients.
TD analyst Michael Tupholme increased his target to $62 from $59, and maintained a Buy rating.
"With legacy projects risk largely rolled off and an ongoing mix shift toward structurally attractive end-markets (still not fully reflected in ARE's valuation), we expect further re-rating," Tupholme said in a note to clients.
"ARE continues to trade at a notable discount to US peers with similarly attractive end-market exposures."