RBC Stays Bullish on Aecom (ACM) While Baird Flags Long-Term Revenue Pressure From AI Rollout

Aecom (NYSE:ACM) is one of the champion concern stocks to bargain according to Wall Street analysts. Aecom (NYSE:ACM) holds a Strong Buy statement standing from 11 analysts with a $144.50 target, implying 41% upside from its existent stock terms of $102.50.

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Analysts astatine RBC Capital reiterated their outperform standing for Aecom connected November 24 and raised the terms people to $139. The stance follows company’s Chief Financial & Operations Officer, Gaurav Kapoor, and SVP of Corporate Finance & Treasurer, Will Gabrielski, reiterating that artificial quality represents an accidental alternatively than a menace to the business.

The absorption squad expects AI to heighten engineering expertise, lawsuit relationships, and interior information management. The exertion is expected to supplement the company’s proprietary mathematical models, for which it owns some the codification and the data. An expert astatine Baird has echoed akin sentiments, reiterating that Aecom’s AI strategy is up of its peers and supports the company’s borderline targets done 2029.

On November 21, Baird downgraded AECOM Technology from Outperform to Neutral portion keeping its $143 terms target, noting the company’s precocious AI strategy positions it up of peers and supports near-term growth, reflected successful its debased PEG ratio of 0.51. While assured successful AECOM’s quality to scope 20% borderline targets, Baird cautioned that AI implementation could unit gross toward the extremity of its 2029 plan. The steadfast added that though AECOM’s end-market vulnerability whitethorn beryllium little charismatic than rival Jacobs, its AI applications are much applicable and should thrust EPS growth. The downgrade, Baird emphasized, reflects valuation concerns alternatively than doubts astir net potential.

Aecom (NYSE:ACM) is simply a planetary infrastructure consulting steadfast that provides nonrecreational services, including planning, design, engineering, program, and operation management, for analyzable projects successful transportation, buildings, water, energy, and the environment, helping clients from governments and businesses physique sustainable legacies.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.