WSP Global stock price target raised to C$305 on Ricardo acquisition

Published 13/06/2025, 11:14
WSP Global stock price target raised to C$305 on Ricardo acquisition

Canaccord Genuity raised its price target on WSP Global Inc. (TSX:WSP) to C$305 from C$300 on Monday, while maintaining a Buy rating on the stock. The price target increase follows WSP’s announced agreement to acquire UK-based consulting firm Ricardo.

The research firm cited Ricardo’s enhancement of WSP’s growth profile as a key factor in the decision. Ricardo’s Energy and Environment business has a medium-term target of double-digit organic growth with little overlap with WSP’s existing offerings, according to Canaccord Genuity.

The acquisition strengthens WSP’s presence in key markets including the United Kingdom (TADAWUL:4280), Australia, and the Netherlands. With pro forma leverage of 2.3x EBITDA following the transaction, Canaccord believes WSP maintains capacity to continue executing additional acquisitions.

WSP currently trades at 16.5x EV/EBITDA for 2026 (after rents), compared to industry peers at 12.1x. Specific competitors include Tetra Tech (NASDAQ:TTEK) at 15.8x, Stantec (NYSE:STN) at 16.9x, and Sweco at 16.1x.

Canaccord Genuity derived its new target price by applying an 18x multiple to its 2026 EBITDA estimate for WSP (after rents) and then subtracting its Q4/2025 net debt estimate.

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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