Amentum Holdings, Inc. (AMTM – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Andre Madrid from BTIG reiterated a Buy rating on the stock and has a $30.00 price target.
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Andre Madrid has given his Buy rating due to a combination of factors that highlight Amentum Holdings, Inc.’s potential for growth and stability. One significant factor is the recent distribution of 7.3 million Amentum shares by Jacobs Solutions, which increased the public float and removed Jacobs’ remaining stake in Amentum. This move is expected to enhance the liquidity of Amentum’s stock and potentially attract more investors.
Another key reason for the Buy rating is the recent $4 billion contract awarded to Amentum by the Space Force, which underscores the company’s strong position in securing high-value government contracts. Additionally, Amentum’s strategic divestiture of its Rapid Solutions business and the shift in joint venture accounting are expected to streamline its operations and improve financial efficiency. The expected use of proceeds from the divestiture to reduce debt further strengthens Amentum’s financial position. These factors, combined with a favorable valuation based on a 10x EV/EBITDA multiple, support the Buy recommendation with a price target of $30.
AMTM’s price has also changed moderately for the past six months – from $24.270 to $21.310, which is a -12.20% drop .