Zacks Investment Research upgraded shares of Jacobs Engineering Group Inc. (JEC) from UNDERPERFORM to NEUTRAL on February 06, 2015, with a target price of $43.00.
Jacobs reported mixed results for first-quarter fiscal 2015, with both top and bottom line missing the Zacks Estimates but improving from its respective year-ago tallies. Revenues growth year over year was driven by higher sales in the company's Technical service division. On the other hand, effective cost-reduction initiatives helped lower Jacobs' costs and enhance earnings year over year. Moreover, by maintaining record backlogs and securing prospective contracts, the company aims to generate better results in the upcoming quarter. Based on the above factors, we prefer to upgrade our recommendation on the stock to Neutral from Underperform. However, increasing direct cost of contracts is becoming an imminent issue for the company. At the same time, the company's trade is exposed to threats of market rivalry and adverse externalities.
To get a free copy of the research report on Jacobs Engineering Group Inc. (JEC),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment