Amentum initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Amentum (AMTM) with a Neutral rating and $21 price target The stock has lower relative valuation compared to the government services peer set, and as a newly combined pure play in the industry, it has the opportunity to reinvest in growth verticals and improve its margins, the analyst tells investors in a research note. The firm adds however that for now, Amentum has slower growth and lower margins than others publicly traded in the industry, at a time when end-market fundamentals are in question given new U.S. government efforts to reduce federal spending.