-- CIBC Capital Markets maintained its outperformer rating on WSP Global (WSP.TO) but decreased its price target to $318 from $328 after the company reported its first quarter financial results on Wednesday.
The bank noted that the company delivered a Q1 beat alongside a "record" backlog and increasing confidence in achieving the low end of its 2027 margin target one year earlier.
"Management reinforced its consistent message that WSP benefits directly from the AI tailwind, with roughly one-third of net revenues in AI-exposed lines (power & energy, data centers, mining, digital), each experiencing elevated growth," said analyst Krista Friesen. At near 11.0 times 2027 consensus EBITDA, WSP continues to trade at a discount to the broader AI power infrastructure value chain, which has materially re-rated, she noted.
CIBC has modestly tweaked its estimates having actualized Q1 earnings and to reflect management's Q2 guidance and its updated 2026 outlook. The bank now sees 2026 EBITDA of near $3.14 billion from $3.09 billion expected earlier, and 2027 EBITDA of near $3.50 billion from $3.48 billion. It has also increased its 2026 EBITDA margin expectation to 19.0% from 18.7%, which is the bottom end of the company's margin guidance for 2027.
For 2027, CIBC expects EBITDA margin of 19.5%, up from 19.3%.
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Price: $218.38, Change: $-5.80, Percent Change: -2.59%