Tuesday, Maxim (NASDAQ:MXIM) Group increased the price target for Tetra Tech (NASDAQ:TTEK), a consulting and engineering services firm, to $230 from $220, while maintaining a Buy rating on the shares. This adjustment comes as the firm anticipates more water cleanup work following new drinking water standards.
The analyst at Maxim Group stated that while keeping the second fiscal quarter 2024 (F2Q24) forecasts for Tetra Tech consistent, they are enhancing subsequent estimates. The optimism is partly due to the Biden-Harris Administration finalizing the first national, enforceable drinking water standard earlier this month, aimed at reducing exposure to harmful substances known as PFAS.
Tetra Tech's F2Q24 earnings report is expected this Thursday, May 1, after the market closes, with an Analyst Day scheduled for May 14. The Maxim Group's earnings per share (EPS) projections for F2Q and the full fiscal year 2024 are positioned at the lower end of the company's guidance and below the consensus. This conservative stance accounts for potential delays in project awards and a decrease in disaster recovery work.
Moreover, Maxim Group anticipates that Tetra Tech will repurchase $150 million in shares by the end of the fiscal year 2026, a notable shift from the absence of repurchases since the acquisition of RPS in January 2023. The revised price target reflects the firm's confidence in Tetra Tech's growth prospects amid an expanding market for environmental services.
InvestingPro Insights
Following the recent price target increase by Maxim Group for Tetra Tech (NASDAQ:TTEK), InvestingPro data provides additional context for investors considering the stock. Tetra Tech boasts a solid market capitalization of $10.33 billion, reflecting its significant presence in the consulting and engineering services sector. Despite trading at a high earnings multiple with a P/E ratio of 44.31, the company has demonstrated strong revenue growth, with a notable 39.3% increase over the last twelve months as of Q1 2024.
InvestingPro Tips also highlight Tetra Tech's consistent financial practices, such as maintaining dividend payments for 11 consecutive years and raising its dividend for 10 consecutive years, signifying a reliable return to shareholders. Additionally, the stock has shown a strong return over the last three months with a 22.32% price total return, aligning with the Maxim Group's positive outlook on the company's growth potential.
For investors seeking a deeper dive into Tetra Tech's financials and future prospects, InvestingPro offers a wealth of additional tips. To explore these insights and make more informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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