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To own Tutor Perini, you generally have to believe the company can convert its record backlog into steadier earnings while avoiding a repeat of past cost and litigation problems. The recent US$900 million U.S. Army Corps of Engineers award in Israel boosts backlog and near term revenue visibility, but it also adds another large, complex program where execution missteps could quickly become the main risk to the story.
The U.S. Army Corps of Engineers contract is the clearest swing factor among the recent announcements, because it reinforces Tutor Perini’s positioning in high value government and defense related work that underpins its growth-focused narrative. At the same time, the size and multi year structure of this agreement bring the company’s long standing concerns around mega project execution, fixed price exposure, and potential dispute risk back into sharp focus.
Yet investors also need to weigh how concentrated exposure to a handful of very large public and defense projects might...
Read the full narrative on Tutor Perini (it's free!)
Tutor Perini's narrative projects $7.1 billion revenue and $515.9 million earnings by 2028. This requires 14.2% yearly revenue growth and a $648.2 million earnings increase from -$132.3 million today.
Uncover how Tutor Perini's forecasts yield a $89.00 fair value, a 27% upside to its current price.
Four fair value estimates from the Simply Wall St Community cluster between US$80.19 and US$89 per share, highlighting how differently individual investors can size up Tutor Perini. You will want to set those views against the company’s growing dependence on a few large, complex public contracts that could materially sway future performance and consider several alternative angles before deciding what it all means for you.
Explore 4 other fair value estimates on Tutor Perini - why the stock might be worth as much as 27% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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