Booz Allen (BAH) stock received a few analyst updates after the consulting firm released a lackluster earnings report last week and announced massive layoffs.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
- William Blair analyst Louie DiPalma reiterated a Hold rating for BAH stock and didn’t provide a price target.
- Five-star Raymond James analyst Brian Gesuale downgraded Booz Allen to a Hold rating without providing a price target.
- Five-star TD Cowen analyst Gautam Khanna initiated coverage of Booz Allen with a Buy rating and $135 price target, representing a potential 25.24% upside for the shares.
Gesuale downgraded BAH stock due to the company’s poor quarterly performance. He also highlighted troubles it faces with the Trump administration and warned the company’s margins “look like they will be heavy as well.”
Booz Allen Earnings and Layoffs
The latest Booz Allen quarterly report included adjusted earnings per share of $1.61 alongside revenue of $2.97 billion. Both of these were below Wall Street’s estimates of $1.62 per share and revenue of $3.93 billion. Additionally, the company’s Fiscal 2026 guidance was below analysts’ estimates.
Following its rough earnings report, Booz Allen revealed that it will cut 2,500 jobs, or roughly 7% of its workforce. Many of these cuts come from its division connected to civilian government operations. This move comes after the Department of Government Efficiency (DOGE) conducted mass federal layoffs earlier this year.
All of this news resulted in a 16.53% drop in BAH stock on Friday, which came alongside heavy trading as nearly 9 million shares changed hands. That’s compared to a three-monthly daily average of 1.9 million units.
Is Booz Allen Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Booz Allen is Moderate Buy, based on four Buy, six Hold, and one Sell ratings over the last three months. With that comes an average BAH stock price target of $136.89, representing a potential 27% upside for the shares.
