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UPDATE: Bank of America Upgrades AECOM Technology to Buy on Solid Cash Flow Performance

Related ACM
Earnings Scheduled For November 10, 2015
AECOM prime contractor for U.S. Air Force IDIQ Contract Augmentation Program with US$5-billion maximum value

Bank of America upgraded AECOM Technology (NYSE: ACM) from Underperform to Buy and raised the price target from $20.00 to $35.00.

Bank of America noted, "ACM has proven over the past several quarters that it has working capital under control, with management's strong focus on FCF generation (with at least 50% of performance comp tied to cash conversion), which makes us more confident in the quality of the company's earnings. We forecast ACM to generate ~$1bn of cumulative FCF in the next three years, which represents about a third of its market cap. Despite a strong move in the stock off its lows, we think improving organic growth reflected in record backlog and active cash redeployment into its buyback program should continue to drive ACM higher over the next year, and we upgrade to Buy."

AECOM Technology closed at $27.95 on Thursday.

Latest Ratings for ACM

Nov 2015CitigroupInitiates Coverage onBuy
Aug 2015Credit SuisseMaintainsOutperform
Jun 2015JP MorganInitiates Coverage onOverweight

View More Analyst Ratings for ACM
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Upgrades Analyst Ratings


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