UBS Raises Price Target on AECOM Technology (ACM) to $43; Reiterates Buy

November 23, 2016 10:57 AM EST
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Price: $35.45 +0.25%

Rating Summary:
    11 Buy, 7 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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UBS reiterated a Buy rating on AECOM Technology (NYSE: ACM), and raised the price target to $43.00 (from $37.00), on increased confidence surrounding growth prospects. On its earnings call, ACM noted that it is pursuing $25b in Management Services contracts. ACM expects decisions on $20b of the MS bids outstanding in the next year and is pursuing another $7b in projects led by Construction Services.

Analyst Steven Fisher commented, "Given its scale, breadth and diversity, and exposure to sluggish markets, organic growth has been an ongoing challenge for ACM, but we think the set up into FY18 and beyond is increasingly positive. ACM has visibility to transportation and infrastructure projects that will be ramping up in '17; we think headwinds from oil & gas will diminish in '17; and we expect at least some increase in Federal infrastructure spending in 2018 off the FAST Act base established last year, plus state level programs. We expect ACM to generate ~$600m in FY17 FCF, and further reduce debt. We expect ACM to deliver growth, margin improvement, cash flow and debt reduction going forward."

For an analyst ratings summary and ratings history on AECOM Technology click here. For more ratings news on AECOM Technology click here.

Shares of AECOM Technology closed at $37.13 yesterday.

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