Analyst Ratings January 26, 2026

JPMorgan Starts Coverage on Exponent with Overweight Call, $100 Target

Bank cites diversified consulting platform, cash-rich balance sheet and rebounds in utilization as drivers of upside

By Priya Menon EXPO
JPMorgan Starts Coverage on Exponent with Overweight Call, $100 Target
EXPO

JPMorgan has initiated coverage of Exponent (NASDAQ: EXPO) with an Overweight rating and a $100 price target, signaling roughly 35% upside from current levels. The bank bases its view on Exponent's position in science and engineering consulting, a cash-positive balance sheet and expected acceleration in revenue and margins, while other firms have also revised views after strong quarterly results.

Key Points

  • JPMorgan initiated coverage of Exponent with an Overweight rating and a $100 price target, implying about 35% upside from current levels.
  • Firm highlights Exponent's leadership in science and engineering consulting, serving over 2,000 clients across 17 practices, and a cash-positive balance sheet with a $3.7 billion market capitalization.
  • JPMorgan projects revenue growth accelerating to 9.5% in 2026, with margin expansion and double-digit EPS growth expected as utilization improves and cost discipline and premium pricing take effect.

JPMorgan has begun coverage of Exponent, assigning an Overweight rating and establishing a $100 price objective, which the bank calculates implies about 35% upside relative to prevailing share prices. That $100 target sits above the current high end of analyst consensus targets, which InvestingPro data lists at $90, and InvestingPro also indicates the stock is trading slightly above its calculated Fair Value.

The investment bank frames Exponent as a leading science and engineering consulting firm that serves more than 2,000 clients through 17 primary practices. JPMorgan highlights this breadth as positioning the company for a substantive rebound in coming years. The company carries a market capitalization of $3.7 billion and, according to InvestingPro, has a financial health score rated as "GOOD," with cash on the balance sheet exceeding outstanding debt.

JPMorgan's modeling shows revenue growth accelerating to 9.5% in 2026. The firm expects margins to expand as industry headwinds ease and utilization improves across Exponent's operations. Analysts from JPMorgan completed a site visit to Exponent's Phoenix facility and held meetings with management, findings that reinforced the bank's view that a combination of disciplined cost control and the ability to sustain premium pricing could support double-digit earnings-per-share growth.

Alongside expected operational improvements, JPMorgan noted that Exponent's diversified business model should underpin healthy free cash flow generation. The bank also described the stock as trading at what it considers a trough multiple, implying potential valuation upside as fundamentals recover and multiples normalize.


Recent quarterly results and peer reactions

Supporting the analyst interest, Exponent reported a robust third quarter for 2025, beating both earnings and revenue projections. The company posted earnings per share of $0.55 versus a consensus projection of $0.51, and revenue of $147.1 million compared with an expected $131.78 million. Those results have been followed by analyst adjustments.

William Blair moved Exponent's rating from Market Perform to Outperform following the strong quarter. UBS raised its price target on Exponent to $81 from $76 while keeping a Neutral rating after investor meetings in which Exponent's management expressed optimism about the company's business outlook. Collectively, these developments reflect a generally positive shift in sentiment among analysts and investors regarding Exponent's near-term trajectory.


What this means for markets and investors

JPMorgan's initiation adds a high-profile institutional endorsement of Exponent's rebound potential, blending fundamental observations from on-site visits with financial modeling that forecasts accelerating top-line growth and margin improvement. The suite of analyst reactions to recent quarterly results demonstrates elevated attention to execution and cash-generation metrics within the science and engineering consulting sector.

Risks

  • Current valuation is assessed by some measures as slightly above calculated Fair Value - this could limit near-term upside if fundamentals do not improve as projected (impacts equity investors and valuation-sensitive market participants).
  • Rebound assumptions rest on easing headwinds and improved utilization; slower-than-expected recovery in utilization would pressure margin expansion and free cash flow (impacts professional and engineering services sector and corporate clients).

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