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Investing.com - KeyBanc raised its price target on Jacobs Engineering Group Inc. (NYSE:J) to $157.00 from $155.00 on Wednesday, while maintaining an Overweight rating on the stock. The new target represents potential upside from the current price of $146.55, though InvestingPro data indicates the stock is trading slightly above its Fair Value.
The price target increase follows what KeyBanc described as a "robust" fiscal third-quarter performance from Jacobs Engineering. With a market capitalization of $17.52 billion and a strong one-year return of 25.77%, the company is on track to deliver 100 basis points of margin expansion, progressing toward the long-term targets set at its analyst day.
KeyBanc believes that with its realigned portfolio, Jacobs Engineering is positioned to achieve its stated objective of 50-80 basis points of annual margin expansion, with a goal of reaching an adjusted EBITDA margin of 16%+ by 2029.
The firm’s July 15 upgrade was based on its assessment that Jacobs has the right assets and frameworks to deliver 6-8% annual NSR (net service revenue) growth with expanding margins.
KeyBanc maintained its Overweight rating on Jacobs Engineering, noting that most of the restructuring and cost management challenges are now behind the company, and raised its price target due to higher estimates.
In other recent news, Jacobs Engineering Group Inc. announced its financial results for the third quarter of fiscal year 2025. The company reported adjusted earnings per share (EPS) of $1.62, which exceeded analysts’ expectations of $1.53. However, Jacobs Engineering experienced a slight miss in revenue forecasts. Despite this, the strong earnings performance was well-received by investors. The company’s strategic initiatives contributed to the positive sentiment surrounding its financial results. These developments reflect Jacobs Engineering’s ongoing efforts to strengthen its financial standing. The recent earnings report highlights the company’s ability to surpass market expectations in terms of profitability.
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