Update (9:45 a.m.): Updated with Wednesday market open information.
NEW YORK (TheStreet) -- Barclays trimmed its price target on URS Corporation (URS) to $44 and set an "equal weight" rating.The firm noted the company's slightly slower revenue ramp and operating margin.
The stock was down 6.95% to $43.91 at 9:44 a.m. on Wednesday.
Separately, TheStreet Ratings team rates URS CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate URS CORP (URS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, URS has a quick ratio of 1.71, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 95.19% to $255.90 million when compared to the same quarter last year. Despite an increase in cash flow of 95.19%, URS CORP is still growing at a significantly lower rate than the industry average of 159.07%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.5%. Since the same quarter one year prior, revenues fell by 10.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, URS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: URS Ratings Report