Baird sees prior report on potential talks between Aecom and WSP as credible
Shares of Aecom (ACM) are on the rise on Wednesday following a report saying the company has canceled from conferences being hosted by Barclays and Citi, which Baird analyst Andrew Wittman believes is being seen as a positive indication that Aecom might be in later-stage deal negotiations. According to prior reports, Aecom was approached by a Canadian competitor regarding a potential transaction.
After Bloomberg reported earlier on Wednesday that Aecom has canceled from conferences being hosted by Barclays and Citi, Baird analyst Andrew Wittmann said it has been confirmed that Aecom canceled from the Citi conference and will not be in attendance at the Barclays event.
Prior reports have noted that Aecom has been approached by Canadian competitor WSP regarding a transaction and Bloomberg’s report is being seen as a positive indication that the company might be in later-stage negotiations for a deal, he contended. The analyst believes the reports on potential talks between both companies are credible, the odds of a transaction occurring are high and a $60-plus valuation seems likely should a deal consummate. Wittmann kept an Outperform rating and $57 price target on Aecom shares.
Canadian engineering services company WSP has approached rival Aecom over a potential deal, Bloomberg’s Ed Hammond reported last month, citing people familiar with the matter. There is no guarantee that the approach will result in a deal, sources said.
At time of publication, Aecom had not responded to The Fly’s request for comment.
In afternoon trading, shares of Aecom have gained about 8% to $50.96.
Originally Posted on February 19, 2020 – Aecom Jumps as Conference Cancellation Sparks Renewed Deal Speculation
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from The Fly and is being posted with permission from The Fly. The views expressed in this material are solely those of the author and/or The Fly and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.