Are Wall Street Analysts Predicting Amentum Holdings Stock Will Climb or Sink?
Chantilly, Virginia-based Amentum Holdings, Inc. (AMTM) provides engineering and technology solutions to the U.S. and allied government agencies. Valued at a market cap of $5.2 billion, the company offers supporting programs of critical national importance across energy, environmental, intelligence, space, defense, civilian, and commercial end-markets.
Shares of this engineering company have lagged behind the broader market over the past six months. AMTM has declined 11.1% over this time frame, while the broader S&P 500 Index ($SPX) has fallen 1.3%. Nonetheless, on a YTD basis, the stock is up 1.1%, outperforming SPX’s slight return.
Narrowing the focus, AMTM has also underperformed the iShares U.S. Industrials ETF’s (IYJ) 3.1% drop over the past six months and 4% rise on a YTD basis.
On May 6, AMTM released better-than-expected Q2 results. Its revenue on a pro forma basis grew marginally year-over-year to $3.5 billion and exceeded the consensus estimates by 1.5%. Moreover, its adjusted EPS of $0.53 improved 3.9% from the year-ago quarter and surpassed Wall Street expectations by 10.4%. Improved operating performance led to a rise in adjusted EBITDA across both its reportable segments. Yet, its shares plunged 4.5% in the following trading session.
Looking ahead to fiscal 2025, AMTM expects revenue to be between $13.9 billion and $14.2 billion, and projects adjusted EPS in the range of $2 to $2.20.
For the current fiscal year, ending in September, analysts expect AMTM’s EPS to grow 5.5% year over year to $2.12. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last three quarters.
Among the eight analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on three “Strong Buy,” one “Moderate Buy,” three “Hold,” and one “Moderate Sell” rating.
This configuration is slightly more bullish than a month ago, with two analysts suggesting a “Strong Buy” rating.
On May 21, RBC Capital analyst Ken Herbert maintained a “Sector Perform” rating on AMTM and raised its price target to $24, which indicates a 12.9% potential upside from the current levels.
The mean price target of $25.38 represents a 19.4% premium from AMTM’s current price levels, while the Street-high price target of $30 suggests a notable upside potential of 41.2%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.