MONTREAL – One of the analysts that covers SNC-Lavalin has upgraded his rating and price estimate for the company\’s stock as a result of changes to the federal government\’s procurement policy, announced in last week\’s budget.
Analyst Chris Murray of AltaCorp Capital said Monday his new target price for SNC shares is $51, up from the previous estimate of $43.
The improved analyst estimate is principally driven by Ottawa\’s proceed to restructure its so-called integrity framework, which automatically imposes a 10-year debarment on companies convicted of bribery or corruption of public officials.
In last week\’s budget, the Conservative government said hello will introduce a brand new integrity regime for procurements that is \”consistent with guidelines in Canada and abroad.\” It will also purportedly ensure suppliers receive \”due process and a whole-of-government perspective, which assists transparent competition as well as an ethical Canadian marketplace.\”
It wasn\’t immediately clear when the government intends to make the changes.