Shares of Stantec (STN) plummeted 5.02% in Monday's trading session, following an analyst report from Stifel Canada. The sharp decline came despite Stifel reiterating its buy rating on the engineering and design company, as investors focused on the lowered price target.

Stifel analyst Ian Gillies reduced the price target for Stantec to C$169.00 from C$175.00, citing lower 2027 EPS estimates. However, Gillies maintained a positive outlook on the company, describing Stantec's third-quarter results as "solid" and considering it the strongest performer among the three engineering firms in their coverage.

The analyst highlighted Stantec's potential for mid-single-digit organic growth rates and an active M&A program expected to resume in the coming months. Despite the price target reduction, Stifel continues to view Stantec as a "core holding." The market's negative reaction suggests investors may be more concerned about the near-term implications of the lowered price target rather than the maintained buy rating and positive long-term outlook.