Report
Krzysztof Smalec
EUR 100.00 For Business Accounts Only

Aecom Announces Spin-Off of Management Services Segment; Raising FVE

We modestly increase our fair value estimate for Aecom to $37 from $36 after the no-moat engineering and construction firm announced plans to spin off its management services segment to form a stand-alone government services company. Management expects the spin-off to be completed in the second half of fiscal 2020. Our fair value increase is due to slightly more optimistic assumptions about operating margins in the management services segment, which we bumped by 50 basis points to 7% from 6.5% a...
Underlying
AECOM

AECOM designs, builds, finances and operates infrastructure assets for governments, businesses and organizations. The company provides: planning, consulting, architectural and engineering design services to commercial and government clients in transportation, facilities, environmental, energy, water and government markets; construction services, including building construction and energy, infrastructure and industrial construction; as well as program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services, for agencies of the United States government and for other national governments.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Krzysztof Smalec

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