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Stock Alert: Shares AECOM (ACM) Hit 52-Week High

Shares of the world's premier infrastructure firm AECOM (ACM) hit a new 52 week high of $50.32 on January 14, and closed Tuesday's trade at $49.74, up $2.66 or 5.65%. ACM shares rose yesterday, after a report said that WSP Global Inc. has approached Aecom about a possible deal.

The company designs, builds, finances, and operates infrastructure assets worldwide. It operates through four segments: Design and Consulting Services (DCS), Construction Services (CS), Management Services (MS), and AECOM Capital (ACAP).

As recently as January 8, AECOM's Management Services business secured a $192 million Integrated Logistics Support (ILS) Services contract. The contract directly supports the effort to deliver a unified tactical network for the U.S. Army's Communications-Electronics Command, headquartered at Aberdeen Proving Grounds, Maryland.

On January 2, the company's Management Services segment was awarded a US$520 million task order under the TACOM Strategic Services Solutions contract to support maintenance, repair, overhaul, modification and upgrade of military vehicles and other equipment at the following U.S. Army locations: Red River Army Depot, Anniston Army Depot, Sierra Army Depot and Rock Island Arsenal. This task order consists of a base year and two one-year options.

In October, AECOM announced that it has entered into a definitive agreement for the sale of its Management Services (MS) business to affiliates of American Securities LLC and Lindsay Goldberg for a purchase price of $2.405 billion. The sale transaction is expected to close in the first half of fiscal 2020.

Last month, AECOM reiterated its financial targets for fiscal 2020, including a plan to achieve 12% adjusted EBITDA growth in its pro forma Professional Services business. The company also initiated 2021 guidance for pro forma Professional Services adjusted EBITDA of $825 million - $865 million, which would reflect 14% year-over-year adjusted EBITDA growth at the mid-point of the range.

On Nov. 12, 2019, the company reported a Q4 net loss of $474.1 million or $3.01 per share versus $83.9 million or $0.52 per share last year. Revenue decreased to $5.11 billion from $5.30 billion generated a year ago.

Total debt declined by $413 million compared to the third quarter, resulting in a net leverage ratio of 2.2.

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