Company News

BUZZ-SNC-Lavalin: Jumps; new interim head to review co's 'strategic direction'

** Shares of Canadian construction firm SNC-Lavalin Group Inc jump 5.5% to C$25, after co tasks newly appointed interim president and CEO to review co’s “strategic direction”

** Chief Operating Officer Ian Edwards succeeds outgoing president and CEO Neil Bruce, in interim capacity

** SNC said last month its board had formed a special committee to consider options to increase shareholder value

** Analysts at National Bank of Canada Financial Markets “applauds” this move in a note titled “glimmer of hope?”, says co’s emphasis on strategic review that seems to prioritise consistency and cash flows

** Brokerage adds “a privatisation should also be strongly considered”; rating stock “outperform” with PT of C$47 which an upside of ~98% to stock’s Monday close

** Out of 12 brokerages tracking the stock, 7 rate it “buy” or higher, 5 “hold”; median PT C$42 - Refinitiv Eikon data

** SNC shares have fallen 48.4% YTD up to Monday’s close (Reporting by Shanti S Nair in Bengaluru)