- KeyBanc analyst Sean Eastman raised the price target on AECOM ACM to $84 (an upside of 14%) from $78 and maintained an Overweight rating on the shares.
- The analyst notes AECOM delivered results at the high end of guidance ranges across all metrics and another quarter of sequential acceleration in underlying revenue and backlog trends.
- Eastman views the stronger than expected 6% organic NSR guidance for fiscal 2022 as an important positive. AECOM's end markets have strengthened, and the margin accretive organic growth strategy appears to be clicking, he adds.
- Credit Suisse analyst Jamie Cook raised the price target to $74 from $66 following quarterly results and maintained a Neutral rating on the shares.
- Citi analyst Andrew Kaplowitz raised the price target to $85 (an upside of 16%) from $81 and kept a Buy rating on the shares.
- Kaplowitz says the company's end-market visibility in fiscal 2022 and beyond has continued to improve with strengthening federal and state, and local government budgets as well as increasing private funding.
- Barclays analyst Adam Seiden raised the price target to $82 (an upside of 12%) from $74 and maintained an Overweight rating on the shares.
- Seiden says, with stimulus now in place, AECOM "could charge ahead." The analyst thinks the stock "remains compelling."
- Recently, AECOM reported Q4 results, with revenue of $3.35 billion (-6% Y/Y), marginally missing the consensus of $3.38 billion, and adjusted EPS of $0.81, beating consensus of $0.77.
- The gross margin expanded by 120 bps to 6.5%. Segment adjusted operating margin increased 210 bps to 14.8%.
- Fourth-quarter operating cash flow of $318 million and free cash flow of $299 million contributed to full-year free cash flow of $583 million. AECOM held $1.2 billion in cash and equivalents.
- FY22 Outlook: AECOM expects adjusted EPS of $3.20 - $3.40 (consensus of $3.24) and adjusted EBITDA of $880 million - $920 million.
- The company increased its FY24 Adjusted EPS target from $4.30+ to $4.75+, reflecting at least 19% CAGR from FY21 to FY24.
- Price Action: ACM shares are trading higher by 0.89% at $73.31 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
