Amentum Holdings Faces Rocky Road but Analysts Remain Bullish
Amentum Holdings, Inc. (AMTM), a significant player in mission-critical solutions, is a global provider of engineering, technical, and operational services. The company, which boasts a market cap of $4.7 billion, is based in Chantilly, Virginia, and serves various sectors including defense, aerospace, nuclear, and environmental management.
Fitting into the “mid-cap” category, companies valued at less than $10 billion can often provide unique investment opportunities. In a world that constantly changes, Amentum aims to achieve long-term success by tackling complex operational challenges across its diverse industries.
However, the past month has not been kind to Amentum Holdings. Shares of the company have declined 14.5%, significantly lagging behind the minor gains of the broader S&P 500 Index ($SPX) during the same period.
The stock has struggled, trading below its 50-day moving average since mid-December, a sign of a bearish trend.
After releasing its fourth-quarter earnings on December 16, Amentum Holdings saw its share price rise by 3.2%. Unfortunately, this gain was short-lived as the stock fell over the next three sessions. During the earnings call, Amentum posted adjusted EPS of $0.28, which marked a considerable improvement from a loss of $0.07 per share the previous year. The company also reported revenue of $2.21 billion, a 3.5% increase compared to the same quarter last year.
Looking ahead, Amentum reaffirmed its guidance for fiscal year 2025, expecting revenues between $13.8 billion and $14.2 billion, adjusted EBITDA ranging from $1.06 billion to $1.1 billion, and adjusted diluted EPS between $2.00 and $2.20.
A notable spike occurred on November 21, when Amentum Holdings’ stock rose over 10% following Raymond James’ initiation of coverage with an “Outperform” rating and a target price of $30.
Despite AMTM’s recent struggles, analysts hold an optimistic outlook for the stock’s future. Of the two analysts who cover the stock, the consensus rating is a “Strong Buy,” with a mean price target of $30.50, suggesting a potential upside of 59.1% from its current position.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
