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Amentum initiated with a Neutral at BofA

BofA analyst Mariana Perez Mora initiated coverage of Amentum (AMTM) with a Neutral rating and $24 price target Amentum is a top 10 provider of advanced engineering, technology solutions, and facility operations to U.S. and international governments which boasts a $45B-plus backlog supported by diversified customers, contracts and capabilities, but high leverage and a slow award environment limit their growth opportunities, the analyst tells investors. The firm sees budget pressure and reprioritization of NASA missions as a key risk given that Space accounts for about 10% of Amentum’s revenues, the analyst added.

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