Sterne Agee Reiterates Buy On Tetra Tech (TTEK)

Sterne Agee is reiterating its Buy rating and $30 price target on shares of Tetra Tech TTEK. In a note to clients, Sterne Agee writes, "TTEK raised its FY11 guidance due to an improved outlook in International and Commercial markets (~49% of revenue combined). GAAP EPS guidance was increased to $1.32-$1.42 from $1.28-$1.40. Non- cash expense totaling $0.39 implies FY11 Cash EPS guidance of $1.71-$1.81. We are maintaining our GAAP FY11 EPS estimate of $1.40 and increasing our Cash EPS to $1.79 from $1.75 due to $0.04 additional amortization. We are reiterating our Buy rating and $30 price target, which equates to ~16.5x and ~21x our Cash and GAAP FY11 EPS estimates, respectively." Shares of TTEK lost 54 cents yesterday to close at $23.68, a loss of 2.23%.