Maxim Group analyst Tate Sullivan has maintained their neutral stance on TTEK stock, giving a Hold rating on May 8.
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Tate Sullivan has given his Hold rating due to a combination of factors impacting Tetra Tech’s performance. While the company exceeded expectations in its recent quarterly results, partly due to disaster response work, there was a notable decline in backlog, primarily due to canceled U.S. federal government contracts. This reduction in backlog, especially from USAID projects, was more significant than anticipated, which raises concerns about future revenue streams.
Moreover, although Tetra Tech has increased the lower end of its fiscal year 2025 revenue and operating EPS guidance, the outlook for U.S. federal government work remains uncertain under the current administration. This uncertainty, coupled with the company’s strategic moves such as acquisitions, suggests a cautious approach. Therefore, despite the positive aspects of recent performance and updated guidance, the overall mixed signals lead to maintaining a Hold rating.
In another report released on May 8, Robert W. Baird also maintained a Hold rating on the stock with a $33.00 price target.