William Blair analyst Louie DiPalma has maintained their bullish stance on BAH stock, giving a Buy rating on October 24.
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Louie DiPalma has given his Buy rating due to a combination of factors that highlight Booz Allen’s strategic positioning and future growth potential. The company’s leadership in AI and cybersecurity solutions for the U.S. government, along with its partnerships with top tech firms like Nvidia and Palo Alto Networks, underscores its strong market presence. Despite a challenging year, management’s optimism about a recovery by fiscal 2027 and the potential for more than 20% upside contribute to the positive outlook.
Furthermore, Booz Allen’s transition to outcome-based contracting is expected to enhance its EBITDA margins significantly over the long term. The company’s robust intellectual property in cybersecurity and data analytics positions it well for future success. Although recent cuts to civil contracts have impacted the current fiscal year, these are seen as temporary setbacks, with a strong pipeline indicating potential growth in the civil sector. Overall, these factors collectively support the Buy rating for Booz Allen’s stock.
DiPalma covers the Technology sector, focusing on stocks such as AST SpaceMobile, Rekor Systems, and Gilat. According to TipRanks, DiPalma has an average return of 9.2% and a 59.16% success rate on recommended stocks.
In another report released on October 24, Cantor Fitzgerald also maintained a Buy rating on the stock with a $160.00 price target.