Q: Hi! Another sharp drop for WSP on May 13. Why is sentiment so bad on this stock? Were earnings that underwhelming? They have a great track record for growth and acquisition provide a service that cannot be directly replaced by AI and is and will continue to be in high demand. The backlog is as high as it has ever been. Any colour on the price action would be much appreciated, because it seems
overdone. But maybe I am missing something. Thanks!
overdone. But maybe I am missing something. Thanks!
5i Research Answer:
Other than Q1 earnings (comments posted) there has been no significant news. It has, however, seen three broker target price downgrades since the earnings release. We also posted comments on May 12. The company released a 'sustainability' report yesterday but this was not material and there is no other negative news. But it is down six days in a row now.