Raymond James upgrades Jacobs on faster growth post spin

Raymond James upgraded Jacobs to Outperform from Market Perform with a $160 price target The spinoff simplifies Jacobs’ strategy and messaging as a pure play on climate transition solutions, enables a faster growing and higher margin business than its predecessor, and creates the foundation for a higher trading multiple, the analyst tells investors in a research note. Furthermore, the firm says the new Jacobs emerges under-levered with opportunities to eliminate significant costs from its enterprise, abstain from acquisitions and execute a meaningful buyback in the $2B range.