Morgan Stanley Overweight On URS Corporation

Morgan Stanley has an Overweight rating and a $55 price target on shares of URS Corporation URS. In a note to clients, Morgan Stanley writes, "URS has consistently grown earnings each of the past five years and has produced more free cash flow than any other E&C. Despite this operational outperformance, the stock has failed to outperform the broader group and as a result is trading at only 12.0 times 2011E earnings. We recently spent time with management and believe the company remains insulated from headline risks that have weighed on the sector, such as the weaker price of oil, defense budget cuts and the nuclear crisis in Japan. Work related to the coming Clean Air rules is likely creating one of the best bidding environments in years. We believe 2011 could be the first year since 2007 that all four business units show simultaneous growth, and that Q2 results due in August should act as a positive catalyst." Shares of URS gained 32 cents yesterday to close at $43.98, a gain of 0.73%.