Aecom price target raised to $119 from $108 at Truist

Truist raised the firm’s price target on Aecom to $119 from $108 and keeps a Buy rating on the shares after hosting meetings with its management team. The firm maintains its view that Aecom is a high quality, low risk way to play secular growth in global infrastructure with a “compelling cash back to shareholder” story, the analyst tells investors in a research note. Aecom’s biggest drivers behind margin expansion besides portfolio optimization have been rightsizing the organization from a real estate footprint and exiting over thirty low return / growth countries overseas, and there are additional margin opportunities ahead as the company is investing in digital capabilities and enterprise capability centers to deliver work more efficiently to customers, the firm added.