Market Overview

UPDATE: UBS Upgrades AECOM Technology


In a report released Monday, UBS analyst Steven Fisher upgraded AECOM Technology (NYSE: ACM) from Neutral to Buy and increased the company's price target from $33.00 to $40.00.

Fisher favors AECOM Technology's move to URS transaction and cost synergies with debt reduction to be a key factor with the company's merger with URS (NYSE: URS). Fisher added to the merger details by stating the combination of the two companies will generate solid cash flows.

AECOM Technology anticipates synergy costs of $250 million. UBS breaks down the synergy costs to represent about $1.10 per share of the company's earnings for the next two to three years. UBS estimates AECOM to encounter about $1 per share of interest expense on its current $5.2 billion debt load and anticipate the company to decrease that debt by $1.5 billion to $2 billion over the next 3 years, representing $0.30 to $0.40 per s hare.

UBS price target of $40 is given by a 11.5 to 12x P/E multiple (unchanged) on a discounted pro-forma 2016 estimate EPS of $3.75, discounted by 10 percent in one year.

Shares of AECOM closed Monday at $34.98, up 10.1 percent

Latest Ratings for ACM

Aug 2019UpgradesUnderweightOverweight
Nov 2018MaintainsNeutralNeutral
Nov 2018MaintainsBuyBuy

View More Analyst Ratings for ACM
View the Latest Analyst Ratings

Posted-In: Steven Fisher UBSAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (ACM + URS)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Arch Capital Group Ltd. Appoints Louis J. Paglia And Eugene S. Sunshine To Board

7-Eleven App Problems Lead To More Free Slurpees