Truist Securities Increases Price Target for Booz Allen Hamilton (NYSE: NYSE:) to $165, Maintains Hold Rating
Truist Securities has adjusted its outlook on Booz Allen Hamilton, raising the price target to $165 from $140, with a Hold rating on the stock. This adjustment comes after a period of recovery for Booz Allen's shares following a 9% drop post the first-quarter earnings report. The firm expects Booz Allen's margins to improve throughout the year, anticipating stabilization in the upcoming quarters despite an initial margin miss influenced by various factors.
Despite trading at a 29% premium over its peers, Truist suggests that Booz Allen's superior organic growth prospects justify this premium. The firm also provided insights into the company's AI segment, noting a potential contribution of 1-2 percentage points to organic growth for fiscal year 2025.
Recent news includes Booz Allen being awarded a $1.2 billion task order from the U.S. Department of Homeland Security and securing a $506 million contract with the U.S. Army. The company's Q1 FY2025 earnings report showed a total revenue of $2.9 billion, with a year-over-year increase of 11%.
InvestingPro Insights:
Booz Allen Hamilton has a market capitalization of $20.26 billion and a P/E ratio of 33.24, reflecting investor confidence in its future earnings. The company has experienced a revenue growth of 13.3% over the last twelve months, indicating strong income generation capacity. Booz Allen shows stability and growth potential, with a track record of raising dividends for 8 consecutive years and strong financial resilience.
For potential investors, it's important to note that there are 11 additional InvestingPro Tips available for deeper insights into the company's performance. With the next earnings date approaching on November 1, 2024, investors will be watching closely to see if Booz Allen's strategic investments continue to pay off.