Cautious Outlook on Amentum Holdings: Sell Rating Despite Strong Financial Results

Kristine Liwag, an analyst from Morgan Stanley, maintained the Sell rating on Amentum Holdings, Inc.. The associated price target remains the same with $20.00.

Kristine Liwag has given her Sell rating due to a combination of factors despite Amentum Holdings, Inc. reporting financial results that exceeded expectations. While the company posted higher than anticipated adjusted EPS and revenue figures, the outlook for FY2026 suggests only modest growth, which may not justify the current stock valuation.
Additionally, although Amentum’s Digital Solutions and Global Engineering Solutions segments showed strong performance, the EBITDA margins were slightly below consensus expectations. This, coupled with higher than expected tax expenses, raises concerns about the company’s ability to maintain profitability levels. Consequently, these factors contribute to a cautious outlook, leading to the Sell recommendation.