National Bank Financial upgrades Bird Construction stock to Outperform

Published 04/09/2025, 10:12
National Bank Financial upgrades Bird Construction stock to Outperform

Investing.com - National Bank Financial upgraded Bird Construction Inc. (TSX:BDT) from Sector Perform to Outperform, raising its price target to C$28.00 from C$26.00.

The upgrade follows a challenging period for Bird Construction, which saw its shares decline 12% year-to-date, underperforming the TSX index’s 16% gain. The company experienced an estimated 11% organic growth decline in Q2/25, contrary to previous expectations of 10% top-line CAGR.

National Bank Financial noted that earnings revision pressures have likely subsided, with Street EPS estimates for 2025 already revised downward by 25% since February 2025.

The firm cited Bird Construction’s recent tuck-in acquisition as a positive catalyst, highlighting the target company’s exposure to port, marine, and dredging sectors that align with dual-use infrastructure for civilian and military applications.

National Bank Financial also pointed to the acquisition’s attractive pre-synergies multiple, expected EPS accretion, and improved balance in vertical market exposure as supporting factors for the rating upgrade.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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