Jacobs Growth Could Improve on Data Centers, Life Sciences Demand, RBC Says

MT Newswires Live00:13

Jacobs (J) could see stronger growth in H2 as data center demand, Life Sciences work, US infrastructure spending, AI use and shareholder returns support the outlook, RBC Capital Markets said in a note Monday.

Jacobs' demand backdrop remains healthy, with Life Sciences and Advanced Facilities expected to improve further in H2, and the company is already seeing better growth, helped by higher net revenue in fiscal Q1 and fiscal Q2, the investment firm said.

RBC said about 10% of Jacobs' business is linked to the AI market, including data centers, power, energy and semiconductors, with demand supported by hyperscalers and neocloud companies, adding that Jacobs could win more work from Hut 8 (HUT) after securing a second AI data center project, helped by its growing relationship with the customer and its data center work with Nvidia (NVDA).

The US infrastructure outlook also remains supportive, with about half of the $500 billion IIJA funding allocated and a possible surface transportation reauthorization later this year, according to the note.

RBC kept the company's outperform rating and $169 price target.

Price: 114.11, Change: +0.50, Percent Change: +0.44

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