Amentum Holdings: B of A Securities raises PT to $27 from $26.

Amentum Holdings: B of A Securities raises PT to $27 from $26.

BofA Securities has increased its price target for Amentum Holdings Inc. (NYSE: AMTM) to $27.00, up from $26.00, according to a recent report [1]. This upward adjustment reflects the market premium attributed to Amentum's nuclear exposure and its diverse portfolio, which includes exposure to secular trends such as Department of Defense priorities and the Energy Trilemma.

The financial services firm acknowledges Amentum's strong momentum, with a 29.48% return over the past six months, and highlights the company's deleveraging and improvement in free cash flow. However, BofA Securities maintains a Neutral rating on the stock, suggesting a balanced view on Amentum's near-term prospects. The firm anticipates that Amentum's scale and scope strategy, along with the transition to more profitable contracts, will take several years to materialize.

In addition to the price target increase, Amentum Holdings reported impressive third-quarter 2025 financial results. The company exceeded earnings expectations with an adjusted diluted EPS of $0.56, significantly outperforming the anticipated $0.31. Revenues reached $3.6 billion, representing a 2% increase from the previous year. Despite these strong financial results, Amentum's stock experienced a decline in pre-market trading, reflecting a complex investor sentiment [2].

Amentum's Q3 results include a 66% year-over-year increase in GAAP revenues, primarily due to the integration of Jacobs’ Critical Mission Solutions and Cyber & Intelligence businesses. The company's backlog grew to $44.6 billion, indicating strong future revenue potential. Amentum also reported a significant reduction in net debt to $3.8 billion, enhancing its financial flexibility. The company completed the divestiture of its Rapid Solutions business, generating $360 million in cash, and secured substantial contracts, including a $4 billion contract with the United States Space Force and a CAD $1.2 billion annual contract with Canadian Nuclear Laboratories [2].

Looking ahead, Amentum remains optimistic about its ability to deliver long-term value, supported by strategic growth initiatives and favorable market conditions. The company's management anticipates continued financial strength and operational success as it progresses into the next quarter.

References:
[1] https://www.investing.com/news/analyst-ratings/bofa-securities-raises-amentum-stock-price-target-to-27-on-nuclear-exposure-93CH-4187733
[2] https://www.theglobeandmail.com/investing/markets/stocks/AMTM/pressreleases/33987860/amentum-holdings-reports-strong-q3-2025-results/