Booz Allen Hamilton: Long-Term Growth Potential Amid Near-Term Challenges

Wells Fargo analyst Matthew Akers has maintained their bullish stance on BAH stock, giving a Buy rating on May 23.

Matthew Akers’s rating is based on a combination of factors that suggest a positive long-term outlook for Booz Allen Hamilton despite some near-term challenges. The unexpected cuts in civil funding have impacted the company’s growth projections for FY26, leading to cautious investor sentiment. However, Akers sees the stock as undervalued in the long run, even with limited spending growth.
On the positive side, Booz Allen’s Defense and Intelligence sectors are expected to show robust organic growth in FY26, positioning the company well in strategic areas like the Indo-Pacific and Space. While there is some uncertainty regarding defense spending legislation, Akers believes that the stock’s current valuation, near its 10-year low, already accounts for potential risks. Consequently, he maintains a Buy rating, supported by a revised price target that reflects a reasonable discount compared to industry peers.

In another report released on May 23, TD Cowen also initiated coverage with a Buy rating on the stock with a $135.00 price target.