J.P. Morgan Maintains Neutral on URS Corporation (URS)

J.P. Morgan is out with its report today on URS Corporation URS, maintaining Neutral. In a note to clients, J.P. Morgan writes, "We rate URS Neutral. On our 2011 EPS estimate, URS trades at an 12.8x P/E, a 28% discount to the E&Cs, due, in our view, to its exposure to public-sector end markets that have more modest secular growth rates than many private-sector markets, given budget reduction initiatives and policy overhangs. URS' free cash flow yield is strong (14% on 2011 MC), and we believe the company's business model is reliably cash-generative, which should enable it to support a higher debt burden than most integrated E&Cs." J.P. Morgan maintains $45 PT on URS. At the time of posting, shares of pre-market were trading at $46.56, up 0.06% from Monday's close.