AECOM (ACM) Stock Forecast & Price Target

AECOM has demonstrated significant growth potential, as evidenced by a 45% year-over-year increase in its water large pursuit pipeline, which is expected to contribute to above-average growth moving forward. The company has improved its segment adjusted operating margins at a rate exceeding the minimum target of 20-30 basis points annually, with expectations of continued enhancement beyond fiscal 2024. Additionally, AECOM's ACM enterprise capability centers have experienced over 20% CAGR since 2020, positioning the company for consistent EPS growth driven by organic initiatives, margin improvements, and shareholder returns.

AECOM's recent strategic shift to focus on six primary geographies has resulted in a significant reduction in operational diversity, with over 90% of revenue now concentrated in approximately 20 countries. While the company experienced strong performance within its Americas business, it faces challenges overseas, particularly in key markets such as the United Kingdom and Saudi Arabia, where funding priorities and investment delays are impacting growth prospects. Additionally, despite a 17% reduction in diluted share count since 2020 and a continued emphasis on share buybacks, uncertainties surrounding global infrastructure spending trends may hinder AECOM's long-term financial stability.