Riyadh's Mukaab Design Win Might Change The Case For Investing In AECOM (ACM)

• Jacobs, in joint venture with AECOM, recently announced being appointed by New Murabba Development Company to provide design services for The Mukaab, the iconic centerpiece of Riyadh's New Murabba development, which is part of Saudi Arabia's Vision 2030 program for a sustainable urban future.
• This appointment places AECOM at the forefront of one of the world's largest urban development projects, enhancing its visibility and business engagement in the Middle East's expanding infrastructure market.
• We'll explore how AECOM's major role in Riyadh's landmark urban project could shape its long-term growth outlook and investment narrative.

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AECOM Investment Narrative Recap

Owning AECOM often comes down to believing in the long-term demand for global infrastructure and sustainable urban development, with the ability to deliver complex, high-value projects like The Mukaab in Riyadh serving as a key catalyst. While this latest Middle East contract may heighten visibility and signal robust project pipeline gains, it does not materially alter the company’s current dependency on stable government-backed infrastructure spending, which remains the most important near-term driver and risk to watch.

Earlier this year, AECOM was also awarded significant contracts supporting national infrastructure in the U.K. and U.S., underscoring its strong client relationships and positioning. These wins complement engagement in Saudi Arabia, together reflecting the potential earning power and international reach that underpin investor confidence in AECOM’s record backlog and margin expansion goals.

But even with these global wins, investors should carefully consider the ongoing risk that a sudden shift in government infrastructure budgets could...

Read the full narrative on AECOM (it's free!)

AECOM's narrative projects $18.8 billion revenue and $955.0 million earnings by 2028. This requires 5.4% yearly revenue growth and a $280 million increase in earnings from $674.7 million today.

Uncover how AECOM's forecasts yield a $141.75 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Four recent fair value estimates from the Simply Wall St Community range from US$96.31 to US$151.14 per share, highlighting significant differences in how investors value AECOM’s growth outlook. In light of the company's deep pipeline in both US and international infrastructure, it is worth exploring why views on its long-term resilience and opportunity are so varied.

Explore 4 other fair value estimates on AECOM - why the stock might be worth as much as 16% more than the current price!

Build Your Own AECOM Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AECOM research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free AECOM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AECOM's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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