AECOM: Barclays cuts target price to $73 from $90

Barclays has further reduced its price target for AECOM (ACM) to $73 from $90, reflecting a more cautious outlook following recent earnings and guidance updates. This marks the second downward revision from the firm in recent months, with the latest adjustment coming after AECOM reported a significant earnings miss and slashed its full-year fiscal 2026 guidance. The company’s adjusted EPS guidance now stands at $3.95–$4.15, well below the previous consensus estimate of $5.97.

The downgrade is attributed to a $337 million pre-tax charge related to a troubled Construction Management project, which contributed to a net loss in the third quarter of fiscal 2026. AECOM also revised its free cash flow forecast downward to approximately $300 million, citing ongoing cash outflows tied to the project. These developments have prompted several other analysts to revise their price targets, including Robert W. Baird, which cut its target to $73 from $87.

Despite the recent selloff, AECOM maintains a record backlog of $27.8 billion and a 1.6x book-to-burn ratio, indicating strong long-term demand for its services. Institutional ownership of the stock remains high, with 85.41% of shares held by institutional investors. Corporate insiders, including CEO Troy Rudd and CFO Gaurav Kapoor, have also increased their holdings in recent weeks.

The stock currently trades near its 52-week low of $66.28 and has a market capitalization of $9.18 billion. With a P/E ratio of 18.64 and a beta of 1.00, AECOM remains a key player in the engineering and construction sector. Investors will be closely watching the company’s conference call for further details on its path to recovery and the potential to recoup losses.