UBS Raises Price Target on Tutor Perini (TPC) to $32; Reiterates Buy

UBS reiterated a Buy rating on Tutor Perini Corporation (NYSE: TPC), and raised the price target to $32.00 (from $26.00). UBS thinks that the operational and oversight issues that slowed down cash collection have now been improved, and expects TPC to turn FCF positive in 2016.

Analyst Steven Fisher commented, "TPC's overall bid pipeline as of 9/30/16 was $45b, compared to $27b as of 9/30/15. Higher margin Civil work represented ~50% of the bid pipeline. TPC is either bidding on or estimates awards to be announced for ~$3.4b of Civil projects in 4Q 2016/early 2017 (~2x TTM Civil revenue). Civil segment backlog of $2.8b represents the largest share of TPC's $6.7b overall backlog as of 9/30/16 (42%). We expect TPC's revenue/margin mix to improve as it burns through its Civil backlog and adds large volume, long duration civil infrastructure awards to its backlog. We think steady pricing and good execution can help TPC achieve 10%+ Civil margins going forward, on avg."

For an analyst ratings summary and ratings history on Tutor Perini Corporation click here. For more ratings news on Tutor Perini Corporation click here.

Shares of Tutor Perini Corporation closed at $28.25 yesterday.

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