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Investing.com - Baird downgraded Jacobs Engineering Group Inc. (NYSE:J) from Outperform to Neutral on Friday, while reducing its price target to $146.00 from $161.00. The stock, currently trading at $129.17, has fallen 16.35% in the past week and trades at a P/E ratio of 32.84, which InvestingPro data identifies as a high earnings multiple.
The research firm noted that a potential combination with WSP Global still maintains credibility, estimating approximately 30% odds for a deal that would likely be structured mostly with stock. With a market capitalization of $15.34 billion and operating with a moderate level of debt, Jacobs maintains financial flexibility for potential strategic moves.
Baird indicated that Jacobs’ fourth-quarter fiscal 2025 results and fiscal 2026 guidance were adequate but not particularly conservative, with performance weighted toward the second half of the year.
The firm specifically mentioned it prefers the lower end of the company’s guidance range, suggesting some caution about the full-year outlook.
Baird also drew parallels between Jacobs’ fundamental situation and that of AECOM (NYSE:ACM), noting both companies face similar artificial intelligence overhangs in their respective markets. Despite these challenges, Jacobs maintains a solid Altman Z-Score of 4.65, indicating financial stability, with InvestingPro’s overall financial health score rated as "FAIR."
In other recent news, Jacobs Engineering Group Inc reported impressive financial results for the fourth quarter of 2025. The company exceeded analyst expectations with an earnings per share (EPS) of $1.75, surpassing the forecasted $1.67. This represents a 4.79% positive surprise for investors. Additionally, Jacobs Engineering’s revenue reached $3.2 billion, also beating projections which were set at $3.15 billion. These figures highlight the company’s strong performance in the recent quarter. The positive earnings report reflects Jacobs Engineering’s ability to deliver results beyond market predictions.
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