To watch: H2O Innovation, SNC-Lavalin and Rogers Communications

SNC-Lavalin’s strategic growth plan for the next three years was received rather coldly in the markets. (Photo: LesAffaires.com)

What to do with the titles of H2O Innovation, SNC-Lavalin and Rogers Communications? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.

H2O Innovation (HEO, $ 2.71): Desjardins analyst remains constructive on growth opportunities

H2O’s fourth quarter results for fiscal year 2021 were relatively in line with expectations, and given that the company enjoys an excellent financial situation, Frederic Tremblay, analyst at Desjardins, remains positive about good growth opportunities. who will present themselves.

H20’s fourth quarter revenues were C $ 35.2 million, while the Desjardins analyst forecast $ 35.5 million. The analysts’ consensus was more optimistic at 37.4 million.

The difference is mainly due to exchange rate variations which had a negative effect, and delivery delays which delayed the recording of revenues during the quarter. Had it not been for the negative impact of exchange rates, revenues would have been up 5.8% compared to the previous year.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $ 3.1 million, while the Desjardins analyst forecast $ 3.3 million and analyst consensus was forecasting $ 3.8 million. The profit margin of 8.8% is well below that of 13.4% achieved last year, but this is explained by a lower contribution from special products for which the profit margin is higher.

Nevertheless, the EBITDA margin for the whole year fell from 9.4% to 10.1%, notes the analyst.

The arrears of payments of the water treatment segment increased by 5% to 32.5 million compared to the previous year, which is an excellent achievement, according to the analyst.

For the operation and maintenance segment, arrears of 69.8 million, down 23% over the previous year, reflect the fact that some contracts are approaching their renewal date, explains the analyst. Management reports that its contract renewal history is 93%.

Desjardins analyst recommends buying the stock and its target price is $ 3.50

To consult the SNC-Lavalin title, click on next.



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