Maxim downgrades Tetra Tech on less government work under Trump

Maxim analyst Tate Sullivan downgraded Tetra Tech (TTEK) to Hold from Buy without a price target based on its outlook for less U.S. federal government work for the company under the current administration. Maxim reduced estimates below consensus, noting the U.S. federal government accounted for 32.2% of Tetra Tech’s fiscal 2024 revenue, up from 30.7% in 2023. Tetra’s U.S. Agency of International Development, or USAID, revenue, including energy security and resilience work in Ukraine, accounted for 13% of revenue in fiscal 2024, up from 12.2% in 2023, the analyst tells investors in a research note. The firm cites a smaller opportunity set for U.S. federal government contracts for the downgrade.