UPDATE: Bank of America Reiterates Buy Rating, Raises PT on AECOM Technology Corp. on URS Acquisition News

In a report published Friday, Bank of America analyst Andrew Obin reiterated a Buy rating on

, and raised the price target from $35.00 to $46.00. In the report, Bank of America noted, “On July 13th, ACM announced URS acquisition for EV of $6bn ($33/sh in cash+ 0.734/sh in ACM stock), expected to close in Oct. We calculate that the acquisition adds >$1/sh to '16 EPS, accelerating EPS ‘13-‘16 growth CAGR from 9% to ~20%. Following the acquisition, we expect ACM to deliver some of the best growth in the E&C sector in an environment of slow global capex cycle. Both ACM and URS's business models are highlyFCF-generative, which should enable ACM to quickly de-lever its balance sheet to 2x Net Debt / EBITDA by ‘16. In our view, ACM has a premium M&A track record with strong management team, which we think minimizes integration risk. We maintain our EPS pending acquisition closure.” AECOM Technology Corp. closed on Thursday at $35.00.