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Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Jacobs Engineering Group

05/10/2021 08:17

12:15 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $176 from $150, valuing the shares at 25.7x our FY 22 (Sep.) EPS estimate (unchanged), above J's three-year forward average and peers' forward average of 20.2x and 20.8x, respectively, due to our outlook for strong long-term growth catalysts connected to rising demand for green infrastructure initiatives, increasing demand for digital modernization, and increased project work related to federal infrastructure spending. We lift our FY 21 EPS estimate to $6.26 from $5.90. J posts Mar-Q EPS of $1.66 vs. $1.39, beating our $1.40 estimate. In FY 21, we expect revenue to increase 4%-6%, followed by 6%-8% growth in FY 22. Global focus on ESG provides ample opportunities for near-term and long-term growth related to markets J already is a leader in, such as projects in clean energy generation, transmission & distribution, and energy storage. We see a rising budget in many U.S. government departments supporting near-term growth.