RBC Stays Bullish on Aecom (ACM) While Baird Flags Long-Term Revenue Pressure From AI Rollout

Core Viewpoint - Aecom (NYSE:ACM) is recognized as a strong investment opportunity by Wall Street analysts, holding a Strong Buy consensus rating with a target price of $144.50, indicating a potential upside of 41% from its current price of $102.50 [1]. Group 1: Analyst Ratings and Price Targets - RBC Capital has reiterated an outperform rating for Aecom, raising the price target to $139, emphasizing that artificial intelligence (AI) is viewed as an opportunity for growth rather than a risk [2]. - Baird downgraded Aecom from Outperform to Neutral while maintaining a price target of $143, citing the company's advanced AI strategy as a competitive advantage, although expressing concerns about revenue pressure from AI implementation towards the end of its 2029 plan [4]. Group 2: AI Strategy and Business Impact - The management team at Aecom anticipates that AI will enhance engineering expertise, client relationships, and internal data management, supporting the company's proprietary mathematical models [3]. - An analyst from Baird noted that Aecom's AI strategy is ahead of its peers and is expected to support the company's margin targets through 2029, despite concerns about the attractiveness of its end-market exposure compared to rivals [4]. Group 3: Company Overview - Aecom is a global infrastructure consulting firm that provides a range of professional services, including planning, design, engineering, program, and construction management for complex projects across various sectors such as transportation, buildings, water, energy, and the environment [5].