UPDATE: D.A. Davidson Raises PT on URS Corporation Following Recent Board Meeting

In a report published Friday, D.A. Davidson analyst John B. Rogers reiterated a Buy rating on

, and raised the price target from $55.00 to $60.00. In the report, D.A. Davidson noted, “Following the company's recent Board meeting, URS announced a commitment to return at least $500 million to shareholders through share repurchases and/or dividends through 2015. This commitment offers a nearly 13% potential return to shareholders based on current market value. Management further indicated the company does not expect to pursue any major acquisitions. Historically the company has grown through a series of large acquisitions, which have led to increased financial leverage with mixed returns to shareholders. Based on our earnings projections and assumption for cash-flow, we expect the company will be able to fully fund this planned distribution of cash from operations while continuing to substantially reduce debt as previously committed. Our estimates call for $5.00 per share in 2014 which implies free cash flow of $7.85 per share. Please see our recent reports. These estimates do not incorporate benefits from additional share repurchases.” URS Corporation closed on Thursday at $51.56.