Truist maintains Buy on AECOM stock, steady at $121 target

Published 12/05/2025, 14:02
Truist maintains Buy on AECOM stock, steady at $121 target

On Monday, Truist Securities reaffirmed its Buy rating on AECOM Technology (NYSE:ACM) with a consistent price target of $121.00. The endorsement follows insights from the Truist Securities Industrials & Services conference, where AECOM’s position as a leading infrastructure professional services firm was highlighted.

The company, recognized for its comprehensive range of services including advisory, planning, design, engineering, and program and construction management, is expected to showcase earnings resilience throughout economic cycles. This outlook is bolstered by AECOM’s record backlog and its strategic focus on markets with robust secular growth prospects. The company’s financial health score of "GOOD" from InvestingPro supports this view, with revenue growth of 4.55% and a strong return on equity of 28% in the last twelve months.

According to Truist Securities, these markets are likely to benefit from ongoing support through state and local regulations, the broad-based infrastructure stimulus from the Infrastructure Investment and Jobs Act (IIJA), and international infrastructure investments.

AECOM’s specialization in delivering high-quality, low-risk infrastructure services positions the firm advantageously within its sector. Truist’s analysis suggests that AECOM’s focused approach is a key factor in its ability to navigate and thrive amidst varying economic conditions.

The $121.00 price target set by Truist Securities indicates their confidence in AECOM’s potential for growth and profitability, reflecting a positive outlook on the company’s future performance in the infrastructure services industry. With a market capitalization of $13.8 billion and an expected EPS of $5.13 for fiscal year 2025, AECOM shows promising fundamentals. For deeper insights into AECOM’s valuation and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s competitive position and financial outlook.

In other recent news, AECOM Technology reported its second-quarter financial results for 2025, exceeding earnings expectations with an adjusted EPS of $1.25, surpassing the forecast of $1.20. Despite this positive earnings outcome, the company recorded revenue of $1.87 billion, which fell short of the anticipated $1.91 billion. AECOM raised its midpoints for EBITDA and EPS guidance for the year, signaling confidence in ongoing growth. RBC Capital Markets responded to these developments by increasing AECOM’s stock price target to $126 from $123, maintaining an Outperform rating. Analyst Sabahat Khan noted that while AECOM’s adjusted EBITDA exceeded expectations, net service revenue was slightly below projections. The company experienced some shifts in U.S. federal government contracts, with $100 million in contracts removed from its backlog, yet maintained a robust U.S. business outlook. AECOM continues to invest in AI, digital initiatives, and infrastructure projects, underscoring its strategic focus on long-term growth.

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