Citi has adjusted its outlook on Aecom (ACM, Financial), decreasing the price target to $116 from a previous $127, while maintaining a Buy rating on the stock. The adjustment aligns with Citi's expectations that forthcoming results from its engineering and construction sector will generally meet or exceed Wall Street forecasts.
Despite this optimism for the short term, there is apprehension about potential future challenges. Management commentary could hint at subdued activity levels ahead, as concerns about an economic slowdown grow. Such uncertainty might cause clients to reconsider project commitments and capital expenditure plans, influenced by increased tariff-related costs and broader economic instability.
In the context of its sector analysis, Citi has highlighted Quanta Services (PWR) as its preferred investment option. Following Quanta are MasTec (MTZ) and KBR (KBR) as other top picks within the engineering and construction industry.
