BMO Capital Markets upgraded Bird Construction Inc. (TSX:BDT) stock to an Outperform rating on Wednesday, setting a price target of C$25.00.
BDT's strong presence across different sectors of the Canadian construction industry were emphasized by BMO, with the firm anticipating BDT to secure a significant portion of upcoming projects due to positive momentum in construction-related spending.
According to the firm, BDT 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.
BDT is expected to reach a price target of C$25.00 according to BMO Capital Markets, representing approximately 6.3 times the estimated 2025 enterprise value to EBITDA (EV/EBITDA). The Outperform rating underscores a favorable outlook on the company's earnings and financial well-being in the upcoming years, demonstrating its resilience in the ever-changing construction industry.
Who is Bird Construction?
BDT Construction (TSX: BDT) is a Canadian leader in design, engineering, installation, and maintenance services performed across the industrial landscape. Through its subsidiaries, BDT provides a comprehensive and diversified portfolio of solutions including new construction and retrofits, Maintenance, repair and operations (“MRO”) services, civil infrastructure construction, fabrication, and modular construction.
They deliver these services across Canada to a range of end-markets including industrial facilities, marine infrastructure, non-residential residences, power generators, transportation assets, mining and oil production.