On Thursday, Jacobs Engineering Group Inc. (NYSE:J) received an optimistic update from a market analyst at Argus, who raised the firm's price target to $174 from the previous $161, while reiterating a Buy rating on the shares. Jacobs Engineering, a large-cap company known for providing technical, professional, and construction services, has been undergoing a restructuring phase for several years.
Despite facing macroeconomic challenges and weaknesses in key sectors such as mining, the analyst noted signs of a turnaround. The company's solid financial position, attractive valuation, and growth driven by mergers and acquisitions were highlighted as positive factors. Moreover, Jacobs Engineering's backlog is expanding with high-margin orders, which is a promising indicator for the company's future performance.
The analyst's decision to increase the price target is also based on the anticipation of increased infrastructure spending in the U.S. and internationally, which is expected to benefit Jacobs Engineering. The company's ongoing efforts to adapt and improve its operations appear to be paying off, as reflected in the analyst's revised price target and maintained Buy rating.
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