North American Construction Group (NOA:CA)
Raymond James has reduced its target price to C$26 from C$30, citing concerns over weaker-than-expected quarterly results and heightened stock volatility. The firm noted that while North American Construction remains a key player in heavy construction and mining services across Canada, recent results showed softer revenue growth and margin pressures, largely tied to project delays and cost inflation.
Analysts at Raymond James also highlighted that the company’s earnings outlook has become more uncertain, with near-term performance being weighed down by fluctuations in resource-sector demand, particularly within the oil sands. In addition, higher financing costs and operational challenges have limited upside momentum, leading the brokerage to take a more cautious stance.
Despite the reduced target, Raymond James acknowledged that North American Construction still benefits from a strong long-term contract base, specialized expertise in mining and earthworks, and a solid backlog of projects. However, until execution improves and earnings visibility strengthens, the firm believes the stock may remain under pressure. The lowered C$26 target reflects a more balanced risk-reward profile in the near term while recognizing the company’s longer-term growth potential if commodity markets stabilize.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
http://www.takenbythewind.com/2014/05/17/why-david-sedaris-lives-abroad/