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Investing.com - KeyBanc has raised its price target on AECOM Technology (NYSE:ACM) to $144.00 from $131.00 while maintaining an Overweight rating on the stock. The construction and engineering giant, currently valued at $17.3 billion, is trading near its 52-week high of $133.84 and has delivered an impressive 39% return over the past six months.
The higher price target reflects a higher multiple applied to the company due to its diversified end market and geographic exposure, according to KeyBanc.
The firm noted that AECOM’s outlook appears resilient, supported by backlog momentum and its global portfolio of projects.
KeyBanc expects AECOM to reiterate its long-term net service revenue growth outlook of 5-8% at its upcoming Command Day, with continued margin expansion likely helped by AI implementation and a heavier focus on advisory and consulting work.
Water/environment and infrastructure modernization remain key growth drivers for the company, with KeyBanc watching for business to pick up in the United Kingdom and Australia.
In other recent news, AECOM reported its fiscal third-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $1.34, compared to the forecasted $1.26. The company’s revenue reached $1.94 billion, slightly above the anticipated $1.93 billion. Additionally, AECOM has been appointed as the Project Management Consultant and engineer for Phase II of The Avenues - Riyadh, a $4 billion mixed-use development in Saudi Arabia. In the United Kingdom, AECOM secured a position on National Highways’ Specialist Professional and Technical Services 3 framework, valued at up to £495 million, which will run until 2031. Furthermore, AECOM, in collaboration with Binnies Singapore, has been selected to provide engineering services for the Phase 3 expansion of Singapore’s Changi Water Reclamation Plant. The expansion aims to increase the treatment capacity by up to 96 million gallons per day. AECOM also announced a quarterly cash dividend of $0.26 per share, payable on October 17, 2025.
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