AECOM price target raised to $132 after Q1 revenue beat and 20% pipeline growth
Truist raised its price target on AECOM to $132 from $126 after Q1 EPS beat expectations, with net service revenue up 2% on a constant currency basis and adjusted growth of 5%. The company reported $3.83 billion in Q1 revenue above estimates, backlog rising 9% and Americas pipeline up 20%.
1. Truist Raises Price Target
Truist analyst Jamie Cook increased AECOM’s price target to $132 from $126 and maintained a Buy rating after fiscal Q1 EPS exceeded management expectations.
2. Q1 Performance Exceeds Estimates
AECOM reported $3.83 billion in Q1 revenue versus a $3.53 billion consensus estimate, with net service revenue growth of 2% on a constant currency basis and 5% adjusted for fewer working days.
3. Record Pipeline and Backlog Expansion
The Americas pipeline reached a record level with 20% year-over-year growth while the early-stage pipeline rose 34%, and backlog increased 9% supported by a 1.5 book-to-burn ratio.
4. Full-Year Guidance and Strategic Investments
Management raised full-year guidance, citing infrastructure tailwinds, margin expansion and ongoing investments in Advisory, Program Management and AI initiatives to expand the addressable market.