Asset Classes

Free investment financial education

Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts

Aecom Jumps as Conference Cancellation Sparks Renewed Deal Speculation

Posted February 20, 2020 at 11:30 am
Jessica de Sa-Mota
The Fly
ACM

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.

CONFERENCE CANCELLATION: 

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.

POTENTIAL DEAL: 

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.

PRICE ACTION: 

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 does NOT constitute a recommendation 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 its permission. The views expressed in this material are solely those of the author and/or The Fly and Interactive Brokers 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 buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. 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.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.