Jacobs Engineering stock rating reiterated at Overweight by KeyBanc

Investing.com - KeyBanc has reiterated its Overweight rating and $157.00 price target on Jacobs Engineering Group Inc. (NYSE:J) following meetings with company executives last week. The target represents potential upside from the current price of $146.23, though InvestingPro analysis suggests the stock is slightly overvalued at current levels.

The investment firm met with Jacobs CFO Venk Nathamuni, Head of Global Business Units & Advanced Facilities Koti Vadlamudi, and SVP of IR Bert Subin for a series of investor discussions, according to KeyBanc analyst Sangita Jain.

Key topics during these meetings included potential paths to margin expansion, AI’s role as both a growth driver and potential threat, management’s thoughts on acquiring the remainder of PA Consulting, and business conditions in light of tariffs and supply chain concerns.

KeyBanc maintains its positive outlook on Jacobs Engineering, expressing confidence that the company is "on a solid footing to improve margins" as it shifts focus from cost reductions to gross margin improvements.

The firm also highlighted that Jacobs’ core end markets in advanced manufacturing, life sciences, and data centers offer "multiyear tailwinds" which, combined with geographic diversity, should enable the company to meet its long-term net service revenue compound annual growth rate target of 6-8%.

In other recent news, Jacobs Engineering Group reported earnings that exceeded consensus estimates, showcasing net revenue growth in its People & Places segment and across all three end-markets in its Intelligent & Advanced Facilities division. Following this performance, RBC Capital raised its price target for Jacobs to $157, maintaining an Outperform rating. Similarly, KeyBanc also increased its price target to $157, citing a robust fiscal third-quarter performance and the company’s progress toward long-term margin expansion goals. In a series of new projects, Jacobs has been selected by the New York State Department of Transportation to provide design services for infrastructure improvements in the lower Hudson Valley region. Additionally, the company will serve as the owner’s program manager for a new pediatric hospital campus in Dallas, a joint venture between Children’s Health and the University of Texas Southwestern Medical Center. Jacobs has also secured a construction management contract for the Port of Long Beach’s Pier B On-Dock Rail Support Facility program, which is part of a $2.2 billion initiative to enhance cargo movement efficiency. These developments highlight Jacobs’ active role in various infrastructure and healthcare projects across the United States.

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