Stifel Canada on Friday maintained its buy rating on the shares of Stantec (STN.TO) while cutting its price target to C$154.00 from C$173.00 following the construction and engineering company's fourth-quarter results.

"The focal point of this quarter's update was undoubtedly management's commentary on opportunities and risks related to AI. We found their views supportive of the view that disintermediation will be challenging, which should create a relief rally for the stock. With that said, we believe this is a complex issue that is likely to rear its head again. Operationally, the company continues to perform very well with a modest beat in the quarter and a 2026E guidance exceeding expectations. With respect to M&A, the company remains very engaged, but timing of a transaction is uncertain as buyer/seller expectations recalibrate. We have reduced our target multiple to 24.0x 2027E P/E (prior: 27.0x) to reflect higher risks, leading to TP of $154 while our BUY rating is unchanged," 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: 127.44, Change: -2.89, Percent Change: -2.22