Goldman Sachs Resumes Jacobs Engineering Group Inc. (J) at Neutral

Goldman Sachs analyst Jerry Revich resumes coverage on Jacobs Engineering Group Inc. (NYSE: J) with a Neutral rating and a price target of $150.00.

The analyst comments "We re-instate a rating on Jacobs at Neutral, with 9% upside to our $150 price target. As outlined in our October 2021 and May 2023 reports, we had argued for significant sum-of-the-parts upside for Jacobs as the Critical Mission Solutions line of business overshadowed Jacobs' high multiple water and consulting product lines. Since announcing the spin of Critical Mission Solutions, Jacobs stock has returned ~37%, with the stock now trading at 14.2x NTM EV/EBITDA vs ~11.5x EV/EBITDA at the spin announcement. We remain constructive on Jacobs' strong competitive position and outlook for solid growth led by Water and Environmental, but that view appears to be the consensus amid the revaluation, driving our Neutral rating today. As a standalone company, the key area of focus will be margin upside, with the February analyst day likely to reveal whether Jacobs can drive margins towards 17% best in class levels from 14% today."

For an analyst ratings summary and ratings history on Jacobs Engineering Group Inc. click here. For more ratings news on Jacobs Engineering Group Inc. click here.

Shares of Jacobs Engineering Group Inc. closed at $136.15 yesterday.

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