William Blair analyst Louie DiPalma has maintained their bullish stance on BAH stock, giving a Buy rating on October 15.
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Louie DiPalma has given his Buy rating due to a combination of factors that suggest a positive outlook for Booz Allen Hamilton despite recent challenges. The company has experienced a significant drop in share price following a reduction in its revenue and EPS guidance, which was more severe than anticipated. However, DiPalma views this guidance cut as a potential turning point, especially given the robust bookings Booz Allen has reported.
Furthermore, the company’s shares are currently trading at a lower earnings multiple compared to its peers, which may present an attractive investment opportunity. Despite the challenges in its civilian business, Booz Allen has shown growth in its defense revenue and an increase in its gross backlog. These factors, combined with the expectation of a rebound in fiscal 2027, underpin DiPalma’s optimistic outlook and Buy rating for Booz Allen’s stock.
According to TipRanks, DiPalma is a 4-star analyst with an average return of 8.9% and a 61.08% success rate. DiPalma covers the Technology sector, focusing on stocks such as Caci International, Gilat, and Palantir Technologies.
In another report released on October 15, Cantor Fitzgerald also maintained a Buy rating on the stock with a $160.00 price target.