Bank of America (BofA) has revised its price target for Jacobs (J, Financial), reducing it from $144 to $123 while maintaining a Neutral stance on the company's shares. This adjustment comes as BofA anticipates a challenging period for the Machinery, Engineering & Construction (E&C), and Waste sectors, raising concerns that the upcoming earnings could present a difficult scenario for firms in these industries.
The firm believes that businesses in these sectors might either lower their financial forecasts due to ongoing uncertainties or face the risk of appearing disconnected from market realities. Against this backdrop, BofA is shifting its focus within the sector, demonstrating a preference for services such as aggregates, rentals, and waste management over original equipment manufacturers.
BofA's cautious outlook reflects broader concerns about the sector's ability to navigate current economic challenges, prompting the firm to adjust its expectations and investment strategy accordingly.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Jacobs Solutions Inc (J, Financial) is $149.69 with a high estimate of $176.00 and a low estimate of $128.00. The average target implies an upside of 29.51% from the current price of $115.58. More detailed estimate data can be found on the Jacobs Solutions Inc (J) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Jacobs Solutions Inc's (J, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Jacobs Solutions Inc (J, Financial) in one year is $99.59, suggesting a downside of 13.83% from the current price of $115.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Jacobs Solutions Inc (J) Summary page.
