Jacobs Solutions Q3: Strong Backlog Supports Growth For FY25
Summary
- Jacobs Solutions shows strong backlog growth and is nearing completion of a spin-off and merger, reinforcing my ‘Strong Buy’ rating with a $170 price target.
- The spin-off of Critical Mission Solutions and Cyber & Intelligence Businesses will allow J stock to focus on high-margin critical infrastructure and sustainability projects.
- Jacobs delivered 1% revenue growth and 5.9% backlog growth in Q3, with strong future growth expected in the People and Places Solutions and PA consulting segments.
- Key risk includes potential impact from Intel's reduced CAPEX, but overall, the strategic separation and backlog growth support a positive outlook for Jacobs.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of J either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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