WSP Global Inc. (WSP: CN) (OTC: WSPOF) has received an updated price target from RBC Capital, now set at Cdn$261.00, raised from the previous Cdn$252.00.
The firm maintained its Outperform rating on the company's stock. The adjustment follows WSP Global's acquisition of POWER Engineers, a move that RBC Capital believes positions the company favorably for medium-term growth.
The analyst at RBC Capital highlighted the strategic benefits of the acquisition, noting it enhances WSP's presence in both a high-growth sector—Power & Energy—and an important geographic market, the United States. The deal is also expected to bring about revenue synergies not currently reflected in WSP's share price.
According to RBC Capital, the financial terms of the acquisition appear reasonable for an asset of POWER's caliber. Moreover, the firm anticipates that the planned cost synergies, starting at US$25 million, represent just the initial phase of financial benefits. Over the next two to four years, revenue synergies are expected to contribute significantly more to WSP's performance.
The revised price target of Cdn$261.00 represents a modest increase of Cdn$9.00 from the previous target. RBC Capital's reiteration of the Outperform rating suggests confidence in WSP Global's trajectory following the acquisition of POWER Engineers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.