On Tuesday, Raymond James increased the price target for WSP Global Inc. (WSP: CN) (OTC: WSPOF) to Cdn$270.00, up from Cdn$255.00, while maintaining a Strong Buy rating on the stock.
The adjustment follows WSP Global's announcement of a significant acquisition that is expected to enhance the company's position in the market.
WSP Global recently announced its intention to acquire Power Engineers, a move seen as a transformative step for the engineering consultancy. This acquisition aligns with the company's strategic ambitions for the period 2022-2024 and is aimed at positioning WSP at the forefront of the energy transition.
The deal with Power Engineers is also anticipated to bring additional benefits, including the enrichment of WSP's three core sectors by providing extensive cross-selling opportunities. The acquisition has garnered financial backing from the Street and WSP's four anchor shareholders, which could potentially pave the way for future similar transactions in the EMEIA or APAC regions.
According to the Raymond James analyst, this acquisition marks yet another instance where WSP Global has convinced a prominent US brand to join its dynamic ecosystem over other higher payout offers from private equity. The analyst highlights the significance of the deal, pointing out that it not only advances WSP's strategic goals but also solidifies its status as a key player in the industry.
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