Benzinga | Nov 16, 2021 01:15PM EST

Analysts Bump Up AECOM Price Target Post Q4 Results

* KeyBanc analyst Sean Eastman raised the price target on AECOM (NYSE:ACM) to $84 (an upside of 14%) from $78 and maintained an Overweight rating on the shares.

* The analyst notes AECOM delivered results at the high end of guidance ranges across all metrics and another quarter of sequential acceleration in underlying revenue and backlog trends.

* Eastman views the stronger than expected 6% organic NSR guidance for fiscal 2022 as an important positive. AECOM's end markets have strengthened, and the margin accretive organic growth strategy appears to be clicking, he adds.

* Credit Suisse analyst Jamie Cook raised the price target to $74 from $66 following quarterly results and maintained a Neutral rating on the shares.

* Citi analyst Andrew Kaplowitz raised the price target to $85 (an upside of 16%) from $81 and kept a Buy rating on the shares.

* Kaplowitz says the company's end-market visibility in fiscal 2022 and beyond has continued to improve with strengthening federal and state, and local government budgets as well as increasing private funding.

* Barclays analyst Adam Seiden raised the price target to $82 (an upside of 12%) from $74 and maintained an Overweight rating on the shares.

* Seiden says, with stimulus now in place, AECOM "could charge ahead." The analyst thinks the stock "remains compelling."

* Recently, AECOM reported Q4 results, with revenue of $3.35 billion (-6% Y/Y), marginally missing the consensus of $3.38 billion, and adjusted EPS of $0.81, beating consensus of $0.77.

* The gross margin expanded by 120 bps to 6.5%. Segment adjusted operating margin increased 210 bps to 14.8%.

* Fourth-quarter operating cash flow of $318 million and free cash flow of $299 million contributed to full-year free cash flow of $583 million. AECOM held $1.2 billion in cash and equivalents.

* FY22 Outlook: AECOM expects adjusted EPS of $3.20 - $3.40 (consensus of $3.24) and adjusted EBITDA of $880 million - $920 million.

* The company increased its FY24 Adjusted EPS target from $4.30+ to $4.75+, reflecting at least 19% CAGR from FY21 to FY24.

* Price Action: ACM shares are trading higher by 0.89% at $73.31 on the last check Tuesday.