Analyst Lorraine Maikis says URS is the largest domestic design firm. She views its record backlog levels, improving capital structure, and strong free-cash flow as solid growth drivers. She notes the recent 30% decline in the stock is triggered by engineering and consulting competitors' comments about slow moving projects and margin weakness.
Maikis says because URS generates only 5% of revenues from construction services, these large project issues have very little effect. She would use the weakness caused by the misperception as a buying opportunity. She set a $30 price objective.