Analyst firm RBC Capital reiterates its "Sector Perform" grade for Aecon Group Inc. (OTC: AEGXF). This investment rating suggests the stock is expected to perform in line with its industry peers. The firm recommends a hold action and raises its price target to C$49.00 from C$44.00. The stock price was $35.26 when the rating was published, as highlighted by TheFly.
Aecon Group is a Canadian construction company that develops major infrastructure projects. It often works in alliances, such as with project owner Metrolinx for the Hamilton Light Rail Transit (LRT) project. In this partnership, Aecon acts as the main construction partner for the 14-kilometer transit line in Ontario.
The company's stable outlook is supported by strong financial results. Aecon reports a record backlog of $10.9 billion. A backlog represents contracted future revenue, indicating a steady stream of work. Its first-quarter 2026 revenue was approximately $1.26 billion, an 18% increase from the same period in 2025.
Looking ahead, Aecon's CEO expects 2026 revenue to be higher than 2025 levels. This positive forecast is based on its large backlog and opportunities in key sectors. These sectors include power generation, transit, water, and defence, which are areas of consistent demand and growth for the company.
Shares of Aecon Group currently trade at $35.26, giving the company a market capitalization of about $2.41 billion. Market capitalization is the total value of all a company's shares. Over the past year, the stock has traded between a low of $11.99 and a high of $38.46.
