Seth Seifman, an analyst from J.P. Morgan, has initiated a new Hold rating on Amentum Holdings, Inc. (AMTM).
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Seth Seifman has given his Hold rating due to a combination of factors impacting Amentum Holdings, Inc. The company, which primarily serves the U.S. government, faces limited growth and margin opportunities due to its significant reliance on government contracts, particularly with the Department of Defense. This reliance has historically insulated Amentum from budget cuts, but it also caps potential growth in certain areas of its portfolio.
Additionally, while Amentum is making progress in reducing its debt, which could enhance earnings and financial flexibility, the overall valuation remains low. The company’s nuclear power segment presents a promising growth opportunity, especially if the U.S. increases investments in nuclear energy. However, this potential is not enough to significantly alter the current valuation, leading to a Hold rating with a price target of $30 by December 2026.
According to TipRanks, Seifman is a 5-star analyst with an average return of 16.3% and a 73.49% success rate. Seifman covers the Industrials sector, focusing on stocks such as Boeing, ATI, and General Dynamics.
In another report released on October 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.50 price target.