Stifel Canada on Wednesday reiterated its buy rating on the shares of Colliers International Group (CIGI.TO, CIGI) while raising its price target to US$195 from US$190 after the company agreed to acquire Ayesa Engineering for US$700-million.

"We are updating our estimates to incorporate Colliers' US$700mm acquisition of Ayesa Engineering ("Ayesa"), its largest-ever transaction (first look here). We estimate that the transaction is accretive to our 2026/2027 EPS estimates by ~4.5%/~6.7%, respectively. Overall, we like the deal; it brings accretive margins, is synergistic with the EMEA project management platform, and provides immediate scale to complete tuck-in acquisitions (the business has an existing pipeline). Moreover, we understand that Ayesa has been reporting robust organic growth and has a healthy backlog that could support double-digit revenue growth in 2026/2027 (we conservatively model mid- to high-single-digits). At ~12.5x LTM EBITDA (~11.0x FWD), the deal is consistent with pricing for scaled engineering assets (and CIGI's acquisition of Englobe). Pro-forma leverage does tick-higher to ~2.6x, but we expect that to fall to the low 2.0s by late 2026 and do not anticipate any equity requirements," analyst Daryl Young wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 179.97, Change: +5.02, Percent Change: +2.87