WSP Global (WSP:CA)
WSP Global’s stock closed September 29 at C$171.55, down 5.6%, after its power and energy investor presentation and several analyst target cuts. The selloff contrasts with strong second-quarter operations: backlog reached C$20.1 billion, organic net revenue grew 5.0%, and adjusted EBITDA rose 28.8% year over year. Reported net earnings declined, partly because of acquisition and integration costs.
The long-term case rests on demand for grid expansion, electrification and data-centre power. Management reaffirmed targets for 40% net revenue growth and 50% adjusted EBITDA growth by 2027 versus 2024. Its adjusted earnings target implies roughly C$12.88 per share, putting the stock at about 13.3 times targeted 2027 earnings at Tuesday’s close.
The current analyst consensus rating is a “Strong Buy” with a C$288 12-month price target, implying a 68% upside from the current trading price. The stock forecast reflects confidence in the company’s long-term earnings potential, particularly its record C$20.1 billion backlog and demand for power and grid projects. However the current “Strong Sell” technical signal identifies that selling pressure remains evident, contradicting the bullish fundamental analytical view.
The key test is execution as WSP Global must turn its backlog into revenue, preserve margins and generate cash while absorbing acquisition and integration costs, which weighed on reported second-quarter earnings. If those costs stay elevated or projects convert more slowly than expected, analysts may reduce their forecasts further.
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