On Wednesday, Bird Construction Inc. (BDT:CN) (OTC: BIRDF) stock received a new Outperform rating from BMO Capital Markets, accompanied by a C$25.00 price target.
The firm highlighted the company's strong positioning within the Canadian construction sector and its operations across various verticals, including buildings, industrial, and infrastructure.
Bird Construction, recognized as a leading contractor in Canada, is anticipated to benefit from the positive momentum in construction-related spending.
BMO Capital Markets points out that the company is well-placed to secure a significant portion of upcoming projects due to the favorable market conditions.
According to the firm, Bird Construction is expected to see continued margin improvements. This outlook is based on a shift in the industry and the company's strategy away from fixed-price, concessionary style projects, which have traditionally been associated with lower margins.
The price target of C$25.00 set by BMO Capital Markets reflects approximately 6.3 times the estimated 2025 enterprise value to EBITDA (EV/EBITDA) for Bird Construction. This valuation suggests a positive view of the company's earnings potential and financial health over the next few years.
Bird Construction's new rating and price target reflect a confidence in the company's future performance and its ability to navigate the evolving landscape of the construction industry.
The Outperform rating serves as an indicator of BMO Capital Markets' expectation that the company's stock will outperform in the market.
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