Amentum (AMTM) Rated Buy on Strong Government Demand

Amentum Holdings Inc. (NYSE:AMTM) ranks among the recent spin-off companies that hedge funds are piling into. On March 12, Truist Securities reiterated its Buy rating for Amentum Holdings Inc. (NYSE:AMTM), with a $42 price target. The firm underlined the company’s long-term growth direction, which is supported by its main revenue streams.

Amentum’s $4 billion growth portfolio, separated into three segments: new nuclear, critical digital infrastructure, and space systems and technologies, accounts for roughly 30% of the company’s revenue.

Truist stated that the company looks to be well protected from possible artificial intelligence risks due to its lack of IT services and emphasis on mission-critical tasks. The firm suggested that investors should largely ignore potential near-term dangers such as the private equity backlog and the Iran war.

In addition, S&P Global Ratings raised Amentum Holdings Inc. (NYSE:AMTM) to ‘BB’ from ‘BB-‘ due to solid operating performance and significant debt repayments, with the forecast remaining steady. Amentum Holdings Inc. (NYSE:AMTM) proactively repaid $750 million of term loan debt in fiscal 2025, thereby accelerating its deleveraging efforts.

Amentum Holdings Inc. (NYSE:AMTM) provides mission-critical, technology-driven services to government and commercial markets.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.