We are downgrading our recommendation on Tetra Tech, Inc. (TTEK) from Neutral to Underperform with a $19 target price.
The company believes that back-end construction management services will weaken in the second quarter and remain soft in the remainder of FY2010, driven primarily by the commercial market downturn and the continued slow pace of stimulus spending.
Due to the forecasted reduction, the company has lowered revenue and earnings guidance for FY2010. The company, however, believes that it will have strong order book for front-end consulting and engineering services in FY2010.Zacks Investment Research
