Analysts Like Jacobs Engineering's FY15 Prospects

Jacobs Engineering Group Inc JEC will see solid demand in 2015 from its energy and chemicals segment customers, while benefits of a recent restructuring kick in, an analyst said Wednesday.

Sterne Agee's Michael S. Dudas maintained a Buy rating and $72 target on company after it beat fiscal fourth-quarter earnings expectations but posted revenue a little short of views.

Jacobs' shares are down nearly 25 percent year-to-date, and on Wednesday were off 1 percent at $47.20 per share.

But Dudas said markets for highway infrastructure, oil refining and chemicals should help the company meet expectations next year.

Meanwhile, restructuring that hurt 2014 results should deliver cost savings in the coming year.

Credit Suisse's Jamie Cook maintained an Outperform rating but trimmed his target 4.7 percent to $61, calling recent revenue "underwhelming."

But the company's outlook "instilled confidence in its core business" Cook said, despite its earnings forecast below the Street consensus.

Jacobs expects 2015 EPS of about $3.60, vs. analysts' prediction of $3.76.

Despite poor market performance this year, Jefferies' Luke Folta called Jacobs "among the best-positioned engineering and consulting companies" and reiterated a Buy rating and $68 target.

But slower-than-expected awards of new contracts combined with a stagnant profit margin could hold back Jacobs' share performance during the near term, according to Deutsche Bank's Vishal Shah, who maintained a Hold rating and $58 target.

Posted In: Analyst ColorEarningsNewsGuidancePrice TargetReiterationAnalyst RatingsCredit SuisseDeutsche BankJamie CookJefferiesLuke FoltaMichael S. DudasSterne AgeeVishal Shah
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