Amentum initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Amentum (AMTM) with a Sector Perform rating and $24 price target Amentum is a leading government services provider and its positives include strong free cash flow, which should support steady de-leveraging, a $45B backlog, and growth market exposure, the analyst tells investors in a research note. However, the firm believes the company’s below-peer fiscal 2025 growth with limited margin expansion will limit near-term sentiment.