Morgan Joseph upgraded URS (URS) to buy from hold, after the company's shares pulled back below $40.
Analyst Richard Paget says that increases to the company's Department of Defense and Department of Homeland Security budgets should result in upper- and single-digit revenue growth over the next two years. He says the military's base realignment and closure program should spur demand for URS's Federal services. Meanwhile he thinks State and Local Government work will benefit from recent gains in state and local tax receipts, as well as increases in Federal funding programs. He set a $48 stock price target.