Aecom price target raised to $105 from $104 at KeyBanc

KeyBanc analyst Sangita Jain raised the firm’s price target on Aecom to $105 from $104 and keeps an Overweight rating on the shares. Aecom reported a beat in Q1, reflecting strong operations and helped by a lower tax rate, and while some of the beat was a function of a lower tax rate and lower share count, overall segment margin of 15% was above the firm’s forecast, the analyst tells investors in a research note. The firm appreciates the significant strength in Aecom’s key end markets, its disciplined capital allocation strategy, and the focused high-grading of backlog towards program management and high-end design work which is reflected in improving margins.