Deutsche Bank analyst Chad Dillard upgraded Jacobs Engineering to Buy from Hold and raised his price target for the shares to $73 from $72. The market is pricing in a near certain probability the CH2M merger integration will fail, Dillard tells investors in a research note. He believes the concerns are overdone and thinks the risk of this merger is lower than other deals in the space. Jacobs management has a strong execution track record, Dillard contends. The analyst sees a path to 65% earnings growth and a doubling of free cash flow over the next three years. As such, he views the stock as "significantly undervalued."