Standpoint Research Downgrades Jacobs Engineering (JEC) to Hold
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Price: $85.84 --0%
Rating Summary:
23 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
23 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Standpoint Research downgraded Jacobs Engineering (NYSE: JEC) from Buy to Hold.
The firm comments, "JEC is our recommendation from August 8. The shares have already jumped > 25% and are + 1490 bps versus the S&P-500 for us. JEC is now trading at ~ 13X peak (2008) earnings of $3.34 and ~14X what they may earn in 2012 ($3.00 consensus forecast). In our opinion this is fair value for a company with EPS and revenue growth in the mid-single digits. In fact, revenues for 2011 (~$10 bln) are still below where they were in 2008 (~$11 bln), as are net profit margins and earnings. Given the valuation and the recent absolute and relative (to the S&P-500) gains, we can no longer leave our highest recommendation attached to this name.
For more ratings news on Jacobs Engineering click here and for the rating history of Jacobs Engineering click here.
Shares of Jacobs Engineering closed at $40.90 yesterday.
The firm comments, "JEC is our recommendation from August 8. The shares have already jumped > 25% and are + 1490 bps versus the S&P-500 for us. JEC is now trading at ~ 13X peak (2008) earnings of $3.34 and ~14X what they may earn in 2012 ($3.00 consensus forecast). In our opinion this is fair value for a company with EPS and revenue growth in the mid-single digits. In fact, revenues for 2011 (~$10 bln) are still below where they were in 2008 (~$11 bln), as are net profit margins and earnings. Given the valuation and the recent absolute and relative (to the S&P-500) gains, we can no longer leave our highest recommendation attached to this name.
For more ratings news on Jacobs Engineering click here and for the rating history of Jacobs Engineering click here.
Shares of Jacobs Engineering closed at $40.90 yesterday.
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