Stifel Canada on Thursday maintained its buy rating on the shares of Stantec (STN.TO, STN) and its C$165.00 price target after the engineering and construction company reported second-quarter results.

"Neutral.2Q25 EBITDA met consensus, and updated 2025E EBITDA guidance largely overlays consensus as slightly weaker revenue growth (expected) is offset by better margins. The primary catalyst for the stock remains a larger M&A transaction later in 2025E or early in 2026E, which management has alluded to previously. Over the past month, Stantec has underperformed the S&P/TSX by roughly 4.5%. As such, we expect a relatively muted reaction tomorrow. We continue to view this stock as a high quality compounder through M&A, and it should be augmented by a re-acceleration in organic growth in 2026E," analyst Ian Gillies 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: 144.59, Change: -4.95, Percent Change: -3.31