SNC-Lavalin Wins $15M Contract In California

SNC-Lavalin Group, one of the world’s largest engineering and construction group, has been awarded a $15 million contract to provide a Transportation Asset Management System (TAMS) for the California Department of Transportation (Caltrans).  

Data Transfer Solutions (DTS), an SNC-Lavalin (SNC) division, will carry out the three-year contract, including two one-year extension options. DTS will notably be responsible for the implementation of the TAMS solution, licensing, and software maintenance. 

SNC-Lavalin’s DTS business President Allen Ibaugh said, “We understand Caltrans’ need for a robust system that provides next-level tracking, reporting, and transparency. Providing a one-stop shop for visualization of state transportation assets, conditions, projects, and performance metrics, we will deliver a cloud-based, integrated solution including VUEWorks®, the web-enabled integrated geographic information system for enterprise asset management. In addition, the Transportation Asset Management Decision Support tool (TAMSDT) will ensure Caltrans carries out its mission to provide a safe, and reliable transportation network that serves all the people and respects the environment.” (See SNC-Lavalin stock analysis on TipRanks

Last month, Desjardins analyst Benoit Poirier reiterated a Buy rating on the stock but lowered his price target from C$38.00 to C$37.00 (35% upside potential).

SNC announced that it had signed a deal to sell its oil and gas business resources to Kentech Corporate Holdings in February. After which, Poirier stated: “We believe these announcements will significantly de-risk the story by reducing the company’s exposure to resources LSTK (lump-sum turnkey) projects, the biggest source of risk for SNC.”

Overall, the consensus among Wall Street analysts is a Strong Buy based on 8 Buys, and 2 Holds. The average analyst price target of C$33.38 implies an upside potential of about 21.8% to current levels. Shares of SNC-Lavalin have soared by almost 30% year-to-date. 

Related News: 
Mullen Group EPS Beats Consensus In 1Q 
Canadian Pacific Misses On Revenue In 1Q  
National Bank Of Canada Publishes Its 2020 ESG Report