UPDATE: Sterne Agee Color On URS 4Q

Sterne Agee, which raised its PT on shares of URS Corporation URS. “Despite lower 4Q10 results, we continue to believe URS Corporation is doing an exceptional job navigating a tough market environment as evidenced by revenue/earnings growth over the last several years,” Sterne Agee writes. “While we are forecasting further growth in 2011/2012, uncertainty regarding public funding will continue to pressure valuation multiple expansion, in our view, relative to other E&Cs with more exposure to high-growth geographies such as Asia, Australia, and South America. “We are lowering our 2011E EPS to $3.64 from $3.85, with the majority of the reduction owed to a higher tax rate (40% vs. 36%), and slightly lower revenue ($9.8B vs. $10.1B), which more than offset a lower share count. Additionally, our 2012E EPS is adjusted to $4.20 from $4.25 mainly the result of below the operating line items mentioned above.” URS Corporation currently trades at $46.53.