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Jacobs Engineering Group (NYSE:JEC) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a report issued on Wednesday. They currently have a $45.00 price target on the stock. Zacks‘s target price would indicate a potential downside of 10.07% from the company’s current price.

Zacks’ analyst wrote, “Jacobs Engineering reported improved year over year results for fiscal third-quarter 2014. While adjusted earnings increased by a penny to $0.84, revenues recorded a hike of roughly 5% to $3.23 billion, year over year. However, the company recorded negative tax impacts from the restructuring activities to the extent of $0.35 per share. The same is expected to adversely impact earnings in fiscal fourth quarter of 2014. Further, Jacobs’ overdependence on third-party dealers for supply of raw materials might lead to a hefty loss if these customers are not able to fulfill the demand. Also, changes in government spending and economic scenario in the international markets may mar the company’s performance. Based on these factors, we downgrade our recommendation on the stock to Underperform from Neutral.”

Several other analysts have also recently commented on the stock. Analysts at Robert W. Baird cut their price target on shares of Jacobs Engineering Group from $64.00 to $63.00 in a research note on Thursday, July 31st. Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of Jacobs Engineering Group in a research note on Wednesday, July 30th. They now have a $58.00 price target on the stock, down previously from $60.00. Finally, analysts at Macquarie reiterated a “neutral” rating on shares of Jacobs Engineering Group in a research note on Wednesday, July 30th. They now have a $58.00 price target on the stock, down previously from $68.00. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $63.64.

Jacobs Engineering Group (NYSE:JEC) traded up 0.50% during mid-day trading on Wednesday, hitting $50.29. The stock had a trading volume of 439,509 shares. Jacobs Engineering Group has a 1-year low of $49.79 and a 1-year high of $66.88. The stock’s 50-day moving average is $53.5 and its 200-day moving average is $58.31. The company has a market cap of $6.691 billion and a price-to-earnings ratio of 18.75.

Jacobs Engineering Group (NYSE:JEC) last posted its quarterly earnings results on Monday, July 28th. The company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.05. Analysts expect that Jacobs Engineering Group will post $3.20 EPS for the current fiscal year.

Jacobs Engineering Group Inc is a technical professional services firm. The Company provides a diverse range of technical, professional, and construction services to a number of industrial, commercial, and governmental clients.

To view Zacks’ full report, visit Zacks’ official website.

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