KeyBanc has revised its price target for Tetra Tech (TTEK, Financial), reducing it from $45 to $34, while maintaining an Overweight rating on the stock. This adjustment comes in the wake of a challenging first quarter of 2025 for engineering and construction (E&C) firms, which have struggled following a robust performance in 2024.
The firm attributes the sector's underperformance to widespread macroeconomic and policy uncertainties. Specifically, actions taken by the Trump administration have created concerns around the regulatory landscape, including issues with tariffs, the management of USAID contracts, and the influence of the cryptocurrency DOGE. These factors have collectively strained market confidence.
Despite these difficulties, KeyBanc suggests that investor focus will likely shift away from quarterly earnings variances. Instead, attention is expected to center on future business sentiment and the broader economic outlook.
