Twin Contracts in Jacob's Kitty - Analyst Blog
May 09 2012 - 12:10PM
Zacks
Series of contract wins continue to boost Jacobs
Engineering Group Inc.’s (JEC) spirit as it announced
winning of two more strategic contracts. One of the contracts
involves four-year agreement with Gatwick Airport and another
contract is from Evonik for a New Chemical Plant.
As per the contract with Gatwick Airport Limited (GAL) in the
United Kingdom, Jacobs will provide professional services support
to the airport capital projects team in their plan to deliver $1.9
billion capital investment program. Jacobs will be responsible for
project management, construction support, cost management and
safety advisory services to GAL.
On the other hand, the contract with Evonik Industries AG will
require Jacobs to provide basic engineering services for an
investment in a grassroots polyamide 12 production facility in
Asia.
Values of both the contracts have not yet been disclosed.
Jacobs’ already has prior experience working with Gatwick
Airport during its ongoing transformation. Moreover, the company’s
long-standing relationship with Evonik through demanding projects
in Europe, the U.S. and Asia is anticipated to strengthen with the
new investment project in Asia.
Jacobs’ proven track record of on-time service delivery as well
as retention of its long-term relationships with existing clientele
has been providing an edge over the industry players, such as
Fluor Corporation (FLR) and Foster Wheeler
AG (FWLT).
Moreover, the company’s growing international exposure through
contract wins and diversification have also been raising investor
confidence over time.
We currently have a long-term Neutral recommendation on the
stock. Moreover, the company maintains a Zacks #3 Rank, which
translates into a short-term (1-3 months) Hold rating.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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