Bank of America (BofA) has revised its price target for Aecom (ACM, Financial), adjusting it from $118 down to $106.50 while maintaining a Buy rating on the company's shares. This change comes as BofA anticipates a challenging earnings season for firms within the Machinery, Engineering & Construction (E&C), and Waste sectors.
The financial institution warns that companies in these sectors could face a "lose-lose" scenario. According to BofA, businesses might either lower their guidance due to prevailing uncertainties or risk appearing disconnected from the current market realities.
In light of these challenges, BofA is adjusting its focus within the sector, favoring services such as aggregates, rentals, and waste management, as opposed to original equipment manufacturers. This strategic shift reflects the firm's efforts to mitigate risks associated with the unpredictable market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for AECOM (ACM, Financial) is $120.40 with a high estimate of $140.00 and a low estimate of $108.00. The average target implies an upside of 30.43% from the current price of $92.31. More detailed estimate data can be found on the AECOM (ACM) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, AECOM's (ACM, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AECOM (ACM, Financial) in one year is $113.63, suggesting a upside of 23.1% from the current price of $92.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AECOM (ACM) Summary page.
