Wednesday, January 19, 2011

Jacobs Engineering (NYSE:JEC) Has Several Catalysts for Share Price Growth

Jacobs Engineering (NYSE:JEC) has an enviable business model, based on building long-term relationships with their clients, which lowers risk in the loss of existing clients.

That and several other catalysts were listed by Canaccord as reasons the company share price will appreciate.

Canaccord says, "Share price appreciation should be driven by the recent acquisition of Aker’s Process & Construction (P&C), which gets Jacobs into the growing mining EPCM business, as well as a return to more normalized capital spending by core oil & gas clients. Additionally, we like Jacobs’ relationship-based business model, high proportion of repeat business, and resulting lower-risk business model.

"Jacobs reports Q1/F11 (December) results before market open on Tuesday, 25 January, and we sit 5% above the consensus EPS estimate. Specifically, we’re looking for revenue and EPS of $2.4 billion ($2.7 billion previously) and $0.62 (no change).The consensus is $2.4 billion and $0.59."

Canaccord Genuity maintains a "Buy" rating on Jacobs Engineering (JEC), which closed Tuesday at $51.16, up $0.14, or 0.27 percent. Canaccord has a price target of $62 on Jacobs.

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