AECOM (ACM) Faces Reassessment as Barclays Shifts Focus Within Construction Sector

AECOM (NYSE:ACM) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside.

On December 19, Barclays analyst Adam Seiden downgraded AECOM (NYSE:ACM) to Equal Weight from Overweight and lowered the price target to $100 from $135. The change came as part of the firm’s 2026 outlook for the machinery and construction space.

Barclays remains constructive on the broader sector heading into 2026 and expects modest share gains after several strong years. Within that view, the firm favors machinery and rental companies, citing cyclical and macro factors. The downgrade of AECOM reflects its exposure to artificial intelligence-driven targets, which adds “complexity” and could weigh on the stock’s valuation multiple, the analyst said in a research note.

Earlier in November, AECOM (NYSE:ACM) raised its segment-adjusted operating margin target to 20%+ by the end of fiscal 2028. Management tied that move to faster operating leverage from higher-return investments in proprietary AECOM AI tools and its Advisory services business.

The company also lifted its expected adjusted EPS CAGR for fiscal 2026 through 2029 to 15%+. That update points to confidence in earnings power as those investments scale. At the same time, AECOM (NYSE:ACM) launched a review of strategic alternatives for its construction management business, including a potential sale. The decision reflects a focus on directing time and capital toward faster-growing, higher-return opportunities. Starting with first-quarter results, the construction management unit is expected to be classified as held for sale on the balance sheet and reported as discontinued operations under GAAP.

AECOM (NYSE:ACM) designs and engineers transportation systems, buildings, water networks, energy infrastructure, and environmental projects. It also provides consulting and construction management, helping clients plan, build, and manage large, complex developments from start to finish.

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