The U.S. Department of Energy (DOE) has picked Jacobs (J) to lead a team that includes North Wind Portage to clean up its Idaho laboratory site. The contract is worth $6.4 billion and will run over a 10-year period.
The Idaho Cleanup Project (ICP) involves Jacobs and its group cleaning up the DOE’s Idaho National Laboratory (INL) site.
“Jacobs welcomes the opportunity to partner with DOE to advance the restoration of the ICP to beneficial re-use for the INL and Idaho Falls community,” commented Jacobs executive Karen Wiemelt.
“Together with the DOE, Jacobs will use our technology-driven solutions to reduce the environmental legacy of the Cold War, support high-quality jobs in the region and protect the Snake River Plain Aquifer, a critical element of Idaho’s agricultural industry,” added Wiemelt.
The site to be cleaned is contaminated with legacy wastes from various projects, including the Manhattan Project and government-owned research nuclear reactors.
Jacobs is an American technical professional services company with global operations powered by a workforce of 55,000 people. It generated $14 billion in annual revenue, and its clients include government agencies and private entities. Cleanup at the INL site began in 2005, and Jacobs said it has been supporting the DOE since 2005. (See Jacobs stock analysis on TipRanks)
Citigroup analyst Andrew Kaplowitz reiterated a Buy rating on Jacobs stock and raised the price target to $164 from $156. The new price target implies a 15.43% upside potential. The analyst is bullish on Jacobs in part because of the improving demand across its businesses.
“When combined with an existing solid backlog, ongoing Focus 2023 initiatives, and its still relatively low leverage, the company is positioned to drive sustainable earnings growth over time,” noted Kaplowitz.
Consensus among analysts on Wall Street is a Strong Buy based on 8 Buy and 1 Hold ratings. The average analyst price target of $155.56 implies upside potential of around 9.5% to the current price.
Jacobs scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock’s returns will likely align with the market performance.
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