Jacobs Solutions (J) is seeing robust demand across end-markets directly related to the AI buildout, which accounts for about 10% of revenue and is growing more than 35% year over year, creating a positive flywheel effect given its positioning across relevant sectors, RBC Capital Markets said in a Monday research report.
Second-derivative AI tailwinds include the acceleration of drug discovery, where Jacobs is also witnessing steady demand, according to the note.
The company's digital & Data team has quadrupled in about five years and continues to use engineering data to create tools that enhance efficiency at the enterprise level, ultimately freeing up resources for new projects, according to the note.
RBC also pointed to Jacobs' role as engineering, procurement and construction management partner for the FUJIFILM Diosynth Biotechnologies facility in Holly Springs, North Carolina, saying the project underscores the company's positioning in the life sciences market and its ability to benefit from long-term demand trends.
The firm has an outperform rating on the stock with a $169 price target.
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