Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 24, 2017

Article Excerpt

Dear client, STANTEC INC., $34.52, symbol STN on Toronto, sells a range of consulting, design and technology services. Its clients operate in the oil and gas, transportation and construction industries, among several other areas. The company has agreed sell its software business, Innovyze, for $270 million U.S. Stantec acquired Innovyze as part of its $795 million U.S. purchase of MWH in May 2016. With 187 offices in 26 countries, MWH is Stantec’s biggest purchase to date. MWH also gives the company a major global presence in the water infrastructure industry. Inovyze is a leading global provider of infrastructure analytics software. Its clients operate around the globe, but are mainly water/wastewater utilities, government agencies and engineering organizations. That business is nonetheless outside of Stantec’s core expertise. The company’s long-term debt of $928.6 million is just 24% of its market cap, so it will likely use the funds for more acquisitions. OUR RECOMMENDATION: Stantec is a hold. Stantec recent coverage Hotline for February 24, 2017 Hotline for November 18, 2016 BMTC GROUP…