Goldman Sachs comments on AECOM Tech (ACM)

Goldman Sachs released a report outlining the company AECOM Tech ACM earlier. In the report, Goldman noted the company's strong quarter but had reservations about the future. Goldman Sachs stated, “ACM reported $2.6 billion in new awards (based on contracted backlog) vs GS: $2.2 billion, implying a book-to-bill of 1.32 vs GS: 1.03. This was driven by strong growth in the Asia Pacific and the Middle East/North Africa regions. This was a positive result for ACM as the company continued to deliver strong earnings/backlog growth despite the recent issue with the Libya project. We like the long-term story for ACM as EM/resource rich companies make up around 40% of revenues, management has a solid execution track record and the stock is trading at an inexpensive valuation. However, we remain Neutral rated as we believe the multiple will continue to be dampened by public funding scrutiny.” Goldman Sachs currently has a rating of Neutral on the company and a price target of $33.00. AECOM Tech closed the trading day on Friday at $27.80, down from $28.19.