Wells Fargo Comments on Booz Allen's (BAH) Plan For Potentially Huge Dividend

July 11, 2012 1:41 PM EDT
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Price: $35.52 -0.34%

Rating Summary:
    13 Buy, 1 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Wells Fargo maintains a 'Market Perform' on Booz Allen Hamilton (NYSE: BAH) price target range $16-$18.

Analyst, Edward S. Caso, commented after the Company's 8-K filing indicated plans to raise incremental term debt to fund up to a $1 billion dividend ($7.50/share).

In stating his bottom line analysis, Caso said, "Large special dividend suggests to us that rather than position for future growth through client/offering expanding acquisitions, BAH will stick with their existing (traditional nonacquisition) model to weather the current challenging period for government spending. Our rating remains Market Perform. Also, in our view, this confirms our Underweight rating for the Government Services subsector."

Note that pre-IPO investor Carlyle Group owns approximately 75% of the outstanding shares.
For an analyst ratings summary and ratings history on Booz Allen Hamilton click here. For more ratings news on Booz Allen Hamilton click here.

Shares of Booz Allen Hamilton closed at $14.76 yesterday.

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