Update (9:38 a.m.): Updated with Wednesday market open information.
NEW YORK (TheStreet) -- UBS increased its price target on AECOM Technology (ACM) to $33 and set a "neutral" rating. The firm noted stabilizing growth as the company passes the trough in North America and Australia.
The stock was flat at 9:37 a.m. on Wednesday.
Separately, TheStreet Ratings team rates AECOM TECHNOLOGY CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AECOM TECHNOLOGY CORP (ACM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AECOM TECHNOLOGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AECOM TECHNOLOGY CORP turned its bottom line around by earning $2.36 versus -$0.57 in the prior year. This year, the market expects an improvement in earnings ($2.55 versus $2.36).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Construction & Engineering industry average. The net income increased by 48.0% when compared to the same quarter one year prior, rising from $38.11 million to $56.40 million.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has significantly increased by 104.78% to $137.39 million when compared to the same quarter last year. Despite an increase in cash flow of 104.78%, AECOM TECHNOLOGY CORP is still growing at a significantly lower rate than the industry average of 206.20%.
- You can view the full analysis from the report here: ACM Ratings Report