Jacobs Engineering: Argus Sees Progress In This Mid-Cap's Turnaround

Argus maintained its Buy rating on Jacobs Engineering Group Inc JEC, and raised the price target to $60 from $58. The new price target assumes a P/E ratio of 18.2-times next year's earnings, slightly above the historical average.

Despite the shares had been in a long-term bearish pattern of lower highs and lower lows that dated to January 2014, the analysts believe they appear to have broken that pattern after a recent low near $35 in January.

"The company has been restructuring its operations for several years and continues to face both macroeconomic pressures and weakness in important end markets," wrote Argus, but mentioned they are beginning to see progress in its turnaround and are attracted by the company's solid balance sheet and current valuations.