In a report released today, Mariana Perez Mora from Bank of America Securities reiterated a Hold rating on Amentum Holdings, Inc., with a price target of $27.00.
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Mariana Perez Mora’s rating is based on a combination of factors that reflect both the strengths and challenges facing Amentum Holdings, Inc. While the company boasts a strong and diverse portfolio, particularly with its exposure to the nuclear sector, the anticipated growth from these areas is expected to take time to materialize. The company’s strategy to scale and scope, which aims to transition to more profitable contracts, is seen as a long-term play that will require several years to fully realize its potential.
Despite the positive outlook on Amentum’s deleveraging efforts and improvements in free cash flow, the current growth and margin profile are expected to remain modest as the company works through existing lower-margin contracts. The interest in Amentum’s nuclear portfolio is high, but significant impacts on financial performance are not anticipated until the end of the decade. Therefore, while there is potential for future growth, the immediate opportunities are limited, justifying the Hold rating.
In another report released on August 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $26.00 price target.