Aecom's (ACM, Financial) stock experienced a reduction in its price target from $121 to $109, according to KeyBanc. Despite maintaining an Overweight rating on the shares, the firm cited macroeconomic and policy uncertainties as significant factors impacting the stock's performance.
The engineering and construction sector, which includes Aecom, faced a challenging first quarter of 2025, following a robust 2024. KeyBanc attributes this underperformance to the mixed signals from the macroeconomic environment and specific policy measures. Of particular note are the uncertainties related to DOGE, USAID contracts, and tariffs, primarily influenced by actions from the Trump administration.
Looking ahead, KeyBanc suggests that investors may largely overlook Q1 results, whether positive or negative. Instead, the primary focus will be on the business sentiment and future outlooks, as they will likely drive investment decisions in the coming quarters.
