Atlas Technical Consultants, Inc. (ATCX) has won a 3-year quality assurance and verification services contract with the California Department of Transportation (Caltrans) worth $18 million.
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Shares of the infrastructure and environmental solutions company gained 3% in the pre-market trading session today. (See Atlas Technical Consultants stock charts on TipRanks)
The new contract brings the total current value won by Alta Vista, an Atlas Company as the prime consultant, to $48 Million.
Atlas CEO L. Joe Boyer commented, “We are proud that we have consistently provided Caltrans the assurance that the quality of materials incorporated into construction projects meet or exceed requirements.”
Per the terms of the contract, Atlas will look after the maintenance, development, and construction of the proposed transportation facilities with an alternative method of procurement that will include several projects.
Further, Atlas will provide key services, like as-needed inspection, sampling, material testing, and quality management activities for structural materials at fabrication facilities and construction sites.
Following the recent Q2 results, Lake Street analyst Robert Brown recently increased the price target on Atlas Technical Consultants from $15 to $18 (81.1% upside potential) while reiterating a Buy rating.
Brown attributes the upbeat results to the strong overall recovery in activity aided by cross-selling efforts.
The analyst foresees reasonable growth next year based on the company’s impressive contracted backlog of $751 million, as well as pending new projects worth $150 million.
Consensus among analysts is a Moderate Buy based on 2 unanimous Buys. The average Atlas Technical Consultants price target of $16.25 implies 63.5% upside potential to current levels.
ACTX scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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