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STN: New Contracts And Index Inclusion Will Drive Long Term Earnings Momentum

STN: Index Addition And Contract Wins Will Support Balanced Medium-Term Prospects

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STN
AnalystConsensusTarget
Not Invested
Published 25 Nov 2024

Update shared on 13 Dec 2025

Fair value Increased 0.16%
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AnalystConsensusTarget's Fair Value
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1Y
9.6%
7D
-2.1%

Analysts have nudged their price target on Stantec slightly higher to approximately $169.36 per share from about $169.10, reflecting modestly improved long term margin and valuation assumptions, despite a marginally higher discount rate and slightly lower revenue growth outlook.

What's in the News

  • Stantec secured a €27.7 million (CAD 45.4 million) contract for the second phase of the European Commission's Global Technical Assistance Facility for Sustainable Energy, extending its role in supporting global energy transition initiatives through October 2028 (Key Developments).
  • The company was re-engaged by Upcycle Minerals Inc. to advance the Tuxford SOP Project, providing geologic assessments, modelling, and NI 43-101 compliant technical reports for the Tuxford and Alkali properties (Key Developments).
  • Stantec revised its 2025 earnings guidance, targeting net revenue growth of 10% to 12%, which reflects confidence in its medium term growth outlook (Key Developments).
  • Stantec Inc. was added to the FTSE All-World Index (USD), increasing its visibility among global equity investors (Key Developments).

Valuation Changes

  • Fair Value Estimate has risen slightly to approximately CA$169.36 per share from about CA$169.10, reflecting a modest uplift in long term valuation assumptions.
  • Discount Rate has increased marginally to about 7.90% from roughly 7.87%, indicating a slightly higher required return in the valuation model.
  • Revenue Growth Assumption has edged down slightly to around 8.39% from about 8.42%, pointing to a modestly more conservative top line outlook.
  • Net Profit Margin has improved slightly to approximately 9.94% from about 9.93%, implying a small enhancement in expected long term profitability.
  • Future P/E Multiple has increased marginally to roughly 30.24x from about 30.17x, signaling a modestly stronger valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.