Amentum initiated with an Underweight at Morgan Stanley

Morgan Stanley analyst Kristine Liwag initiated coverage of Amentum (AMTM) with an Underweight rating and $19 price target The newly combined business has “notable” synergy potential, but the Department of Government Efficiency makes for a more challenging operating environment, the analyst tells investors in a research note. The firm prefers hardware over services in this environment given the relative risk/reward skew.