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

Bank of America upgraded AECOM Technology 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.