UBS analyst Steven Fisher reiterated a Buy rating on Aecom Technology today and set a price target of $148.00.
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Steven Fisher has given his Buy rating due to a combination of factors that highlight Aecom Technology’s potential for growth and profitability. The company has set a target of achieving a 15% compound annual growth rate in earnings per share, which Fisher believes is attainable. This optimism is supported by Aecom’s strategic focus on leveraging artificial intelligence to enhance operational efficiency and margins. The company is actively addressing structural challenges by investing in AI, which is expected to yield significant margin benefits in the coming years.
Margins remain a critical factor for earnings growth, and Aecom is shifting its focus towards AI and advisory services as new drivers for margin improvement. The potential for AI to provide up to 80% incremental margins compared to the current 20% is particularly promising. Additionally, Aecom’s proactive approach in transforming potential threats into opportunities, such as acquiring a math model company to enhance their service offerings, underscores their commitment to maintaining competitive advantage and delivering higher returns for investors.