SNC joins in Brazil’s building boom

Article Excerpt

SNC-LAVALIN GROUP INC. $52 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 150.9 million; Market cap: $7.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.3%; SI Rating: Average) has formed an alliance with Alusa Engenharia Ltda, a leading engineering firm in Brazil. Together, the two companies plan to bid on new infrastructure projects in Brazil, which is hosting the 2014 FIFA World Cup and the 2016 Summer Olympics. To support these events, the country plans to upgrade its roads, airports, stadiums and electrical grids. SNC has operated in Brazil for 40 years. Its long history in the country and its new partnership with Alusa improve its chances of winning new contracts. Meanwhile, spending on public-works projects in Canada and other countries is likely to speed up as the economy recovers. SNC-Lavalin is now a buy. buy…