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Investing.com - Desjardins downgraded Aecon Group (TSX:ARE) stock rating from Buy to Hold while significantly raising its price target to C$35.00 from C$22.00.
The Canadian construction firm has seen its shares rally 73% over the past three months, substantially outperforming the S&P/TSX’s 10% gain during the same period.
Desjardins attributed the stock’s strong performance to investor optimism surrounding nuclear buildouts and nation-building infrastructure agendas in Canada.
The downgrade comes despite the higher price target as Desjardins believes Aecon shares are now fully valued with a lack of near-term catalysts to drive further appreciation.
The research firm noted that many of Aecon’s recently announced projects appear to be rebranded versions of existing plans, including the Darlington SMR project that was already in the company’s backlog and the Contrecoeur project announced last year.
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