AMTM Stock Forecast & Price Target

Amentum Holdings Inc. has demonstrated a strong financial performance with a total revenue of approximately $3.4 billion in fiscal 1Q25, surpassing consensus estimates by 2% and reflecting a year-over-year growth of 2.3%. The company has achieved a pro forma book-to-bill ratio of 1.1, indicating an influx of new contracts that supports future revenue growth and confidence in its financial targets. Additionally, Amentum's robust awards pipeline, now at around $30 billion, coupled with an anticipated increase in bid submissions for FY2025, positions the company for sustained growth in the competitive government services sector.

Amentum Holdings has seen a decline of 25% in stock value since the 2024 election, which is more pronounced than the average 21% decline experienced by its government service peers, signaling increased investor uncertainty. The company has adjusted its FY25 guidance to reflect a decrease in anticipated revenue from new business, now projecting only 4% instead of 8%, which raises concerns about future growth prospects. Additionally, the company's financial metrics indicate a precarious position, with net leverage at 4x and key challenges in the budget environment, contract execution, and bookings contributing to a justified lower valuation multiple.