UPDATE: J.P. Morgan Raises PT on URS to $47.50 (URS)

J.P. Morgan is out with its report today on URS URS, raising its PT from $45 to $47.50. In a note to clients, J.P. Morgan writes, "We rate URS Neutral. On our 2011 EPS estimate, URS trades at an 12.5x P/E, a 30% 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's free cash flow yield is strong (13% on 2010 MC), and we believe company's business model is reliably cash-generative, which we believe enables it to support a higher debt burden than most integrated E&Cs. Our December 2011 price target of $47.50/share (up from $45.00) is based on a 12.5x target multiple (up from 12.0x on a slightly improving cyclical growth outlook) to our 2012 EPS estimate, which represents a slight discount to its historical average multiple and toward the lower end of our coverage universe, due to a more modest, multi-year growth profile relative to other E&Cs." Shares of URS closed Tuesday at $45.50, up 1.45% from Monday's close.