SNC-Lavalin Gets 3 New Contracts from UKAEA

SNC-Lavalin Group (TSE: SNC), one of the world’s largest engineering and construction groups, has been awarded three new contracts by the U.K. Atomic Energy Authority United Kingdom (UKAEA) for continued work on the Spherical Tokamak for Power Generation (STEP) project, a landmark program to design and build a commercial-scale fusion power plant. 

Under these contracts, SNC-Lavalin will leverage its global nuclear and fusion know-how and insights gained from its long involvement in the STEP program to provide the UKAEA with specialized engineering and strategic advice.  

Management Commentary 

SNC-Lavalin president and CEO Ian L. Edwards said, “Fusion energy has the potential to produce a stable, reliable and low-carbon power source that could be critical in a decarbonised energy future. Our involvement will bring together the best of UK and international expertise to solve the challenges associated with fusion energy. Developing engineering solutions and pathways to commercialise emerging, low carbon technology is an important part of our commitment to Engineering Net Zero.”   

Wall Street’s Take

On January 10, RBC Capital analyst Sabahat Khan kept a Buy rating on SNC and set a price target of C$42. This implies 48.3% upside potential.  

Overall, consensus among Wall Street analysts is that SNC is a Strong Buy based on eight Buys and one Hold. The average SNC-Lavalin price target of C$42.82 implies upside potential of 51.2% to current levels. 

Download the TipRanks mobile app now

Related News: 
SIG Plc Announces 2021 Full Year Trading Update
ATS Buys System Integrator HSG Engineering