TTEK - Tetra Tech rated Outperform in new coverage at RBC Capital
2023-08-28 12:20:14 ET
Tetra Tech ( NASDAQ: TTEK ) on Monday was rated Outperform in new research coverage by analysts at financial-services firm RBC Capital Markets. They said the engineering and construction company is poised for growth amid higher spending on infrastructure projects.
“Tetra Tech ( TTEK ) is uniquely positioned among our engineering coverage with approximately 55% revenue exposure to water and roughly 35% exposure to environmental services/renewable energy,” Sabahat Khan, analyst at RBC Capital, said in an August 28 report. “Growing investor demand for water-exposed firms, combined with Tetra Tech's ( TTEK ) significant presence in this end-market (highest among our engineering coverage), has been the likely driver of Tetra Tech's ( TTEK ) premium valuation.”
RBC set a price target of $181 a share on Tetra Tech ( TTEK ), based on a multiple of 19.5 times its estimate of adjusted Ebitda of $530 million for fiscal 2024.
“We believe our valuation multiple fairly reflects our outlook for sustainable organic growth and margin improvement over our forecast horizon, the company’s unique end-market mix, and a return on invested capital at the high end of the company’s peer group,” RBC said.
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Tetra Tech rated Outperform in new coverage at RBC Capital