Tetra Tech uniquely positioned as leader in water services, says RBC Capital

RBC Capital keeps an Outperform rating and $233 price target on Tetra Tech after meeting with its management team. The discussion highlighted the company’s unique position as a Water Service firm, the M&A opportunity ahead, the potential impacts of the upcoming U.S. election, and the management’s balanced capital allocation strategy, the analyst tells investors in a research note. The recent investor concern likely relates primarily to the impact of a Republican administration on EPA funding and work related to Environmental/Renewable end-markets, but the firm believes that a change in administration is likely to have more of a “sentiment” hit to the sector over a short period of time as opposed to a tangible dollar impact on demand, RBC added.