By Diego La Torre and Maj Soueidan

Record backlog, margin expansion underway, and trading at half the multiple of its peers

We just published a bullish article our analyst wrote on a high conviction idea that’s in one of our model portfolios. The stock is also in our high performing infrastructure and data center screens.

We’re publishing this update for two reasons. 

1. The company just reported Q4 results, giving us a full year of data plus fresh management commentary.
   
2. A major government budget dropped with over C$100B in infrastructure and defense commitments, by far the most significant macro catalyst for this company’s industry in decades.

Even though the stock has risen by more than 60% over the past year, we believe we are still early. The stock hit a new all-time high after earnings, yet still currently trades at a 45% discount to its peer group on EV/EBITDA. We went deeper into why that gap should close.

We think this stock has a chance to at least double over the next two years. The goldilocks scenario is one where the company gets a much higher valuation multiple than the industry because of its exposure to the nuclear, data center, and defense themes.

You can check out the full post here.

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