Amentum Holdings Inc. (AMTM) PT Raised to $24 at UBS Amid Choppy Growth

UBS analyst Gavin Parsons raised the price target on Amentum Holdings Inc. (NYSE: AMTM) to $24.00 (from $23.00) while maintaining a Neutral rating.

The analyst commented, "Growth continues to be choppy, and while Amentum has been able to offset the impact to EBITDA and cash flow, we believe accelerating growth is the key to a re-rating. The stock is cheap at 7.5X NTM consensus EV/EBITDA (11.1X for Gov Services), and we believe share repurchases are likely to begin next year. Visibility is improving on a few unique growth drivers like commercial nuclear, with Westinghouse + Rolls Royce partnerships. Funded bookings are up 27% YTD and funded backlog was up 11% yoy in F3Q. But timing has impacted the ramp-up this year, and these dynamics don't seem to be enough to offset the abrupt NASA headwind next year. We do see opportunity for growth to accelerate, but even with an improving customer funding environment the outlook for AMTM still looks a bit bumpy. We remain Neutral."

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