Wells Fargo more bullish on Booz Allen, upgrades to Overweight

AS previously reported, Wells Fargo upgraded Booz Allen to Overweight from Equal Weight with a price target of $165, down from $168. The firm thinks issues driving the Q1 EBITDA shortfall are “temporary and mostly behind us,” and says the company should see accelerating top-line growth as late Q1 hire utilization kicks in and year-over-year comparisons ease. Booz Allen is one of the highest return companies in A&D, trading at a discount to historical relative valuation after a rare operating miss, Wells adds.