Fly News Breaks for January 28, 2020
PWR, J, MTZ, ACM
Jan 28, 2020 | 06:23 EDT
Citi analyst Andrew Kaplowitz says Quanta Services (PWR) remains his top pick in the Engineering & Construction space heading into the Q4 earnings season, followed by Aecom (ACM), MasTec (MTZ) and Jacobs (J). With valuations "less forgiving than before," stock selectivity is key, says Kaplowitz, who continues to like value names. The analyst continues to believe that the space is "only starting to get the respect it deserves." He opened a "positive catalyst watch" on Aecom given the potential acquisition-related benefits and a negative watch on MasTec given the company's back-half loaded year.
News For ACM;MTZ;J;PWR From the Last 2 Days
Apr 21, 2021 | 06:40 EDT
Citi analyst Andrew Kaplowitz raised the firm's price target on Quanta Services to $113 from $98 and keeps a Buy rating on the shares. The analyst continues to see upside potential for engineering and construction companies heading into Q1. Despite some "weather related hiccups," the overall economic and fiscal-related spending environment continues to improve, Kaplowitz tells investors in a research note. He remains bullish on the E&C space.
Apr 20, 2021 | 05:01 EDT
Jacobs (J) /Morrison Utility Services joint venture, or JV, has been awarded a place on National Grid's (NGG) six-year substations engineering procurement construction framework in the U.K. The framework will provide collaborative and long-term support through program management, early contractor involvement, design and construction to deliver National Grid's performance-based substation regulatory program under RIIO-T2, where revenue generated is realized through a combination of incentives, innovation and outputs. National Grid estimates the contract value at $1.3B. As principal designer and principal contractor, the Jacobs/Morrison Utility Services JV will deliver new build, extension, replacement and decommissioning of high voltage electricity substations. The framework aims to develop the transmission network to maintain security of supply, while facilitating the ongoing transition to and connection of low-carbon generation and renewable technology. The JV will also focus on solutions to challenge convention and help National Grid support the low-carbon economy, using innovation to reduce materials, cost, carbon and scheduling. Organizational and delivery behaviors are aligned with the Project 13 Framework, a response to infrastructure delivery models in the U.K, where performance is incentivized against outcomes, using collaborative and integrated teams to challenge and maximize value.
Apr 19, 2021 | 13:24 EDT
Earlier, Stifel analyst Joseph DeNardi raised the firm's price target on Parsons (PSN) to $70 from $45 based on his sum-of-the-parts valuation on average 2023/2024 EBITDA estimates. DeNardi, who keeps a Buy rating on Parsons shares, called the stock his top pick in Defense and Government Services and added the stock to the Stifel Select List. Both Jacobs (J) and Parsons stand to benefit over the next several years from higher infrastructure spending as a result of the FAST Act and President Biden's recently released infrastructure bill, the American Jobs Plan, argues DeNardi.