BofA double downgrades Booz Allen to Underperform on civil weakness

BofA analyst Mariana Perez Mora downgraded Booz Allen (BAH) to Underperform from Buy with a price target of $90, down from $160. The firm underestimated the extent of the challenges related to the company’s civil exposure, which makes up about a third of revenues, the analyst tells investors. The firm continues to view the company as strongly positioned across the national security portfolio, but does not expect this to be enough to offset growing pressure from the continued turmoil in civilian agencies priorities or propel growth in the near term, says the analyst, who thinks the stock’s valuation will remain pressured until Booz Allen can get back on a net growth trajectory.