JP Morgan maintains Underweight on Booz Allen Hamilton with PT raised to $122.

JP Morgan maintains Underweight on Booz Allen Hamilton with PT raised to $122.

In a recent update, JP Morgan has maintained its underweight rating on Booz Allen Hamilton (BAH), while raising the price target to $122. The financial services firm's decision comes in the wake of Booz Allen's Q1 2026 earnings report, which saw the company beat earnings per share (EPS) expectations but fall short of revenue forecasts.

According to the earnings call transcript [1], Booz Allen Hamilton reported an EPS of $1.48, surpassing the expected $1.46. However, the company's revenue came in at $2.92 billion, falling short of the anticipated $2.97 billion. Despite the revenue miss, the stock experienced a positive aftermarket reaction, rising 4.98% to $120.85.

The company's strong performance was driven by a 64% year-over-year increase in net income and a 3% year-over-year increase in adjusted EBITDA. Booz Allen's continued investment in AI and advanced technologies has positioned it well within the government technology ecosystem. However, challenges such as a slow government funding environment and a decline in customer-facing staff may pose future risks.

Looking ahead, Booz Allen Hamilton expects growth in the latter half of the fiscal year, focusing on outcome-based and fixed-price contracts. The company anticipates a reset in the civil sector in Q2 and projects free cash flow between $900 million and $1 billion.

JP Morgan's decision to maintain an underweight rating reflects the mixed sentiment surrounding Booz Allen Hamilton's recent performance. While the company's profitability is robust, the revenue miss and potential challenges in the government funding environment have raised concerns among investors. The price target of $122 suggests a cautious outlook, reflecting the uncertainty surrounding the company's future growth prospects.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-booz-allen-hamilton-beats-eps-in-q1-2026-93CH-4153960