Amentum Holdings, Inc. (NYSE:AMTM) is one of the 7 best undervalued stocks to buy now. BofA analyst Mariana Perez Mora began coverage of the company’s stock with a “Neutral” rating and price objective of $24, as reported by The Fly.
An engineer analyzing a complex engineering schematic while surrounded by equipment and tools used in the development of optical sensing solutions.
As per the analyst, Amentum Holdings, Inc. (NYSE:AMTM) happens to be a top 10 provider of advanced engineering, technology solutions, and facility operations to US and international governments. Furthermore, it possesses more than $45 billion in backlog, which is aided by diversified customers, contracts, and capabilities. That being said, the elevated leverage and a subdued award environment tend to limit the growth opportunities, added the analyst. BofA expects that budget pressure and reprioritization of NASA missions can be a critical risk, considering that Space makes up for ~10% of Amentum Holdings, Inc. (NYSE:AMTM)’s revenues.
Amentum Holdings, Inc. (NYSE:AMTM) posted solid Q2 2025 results, demonstrating the strength of its mission-focused portfolio and the consistency of demand throughout markets. Its revenues came in at $3.5 billion, implying 1% growth on a pro forma basis. For FY 2025, Amentum Holdings, Inc. (NYSE:AMTM) expects revenues of between $13,850 million – $14,150 million, and adjusted EBITDA of $1,065 million – $1,095 million.
Amentum Holdings, Inc. (NYSE:AMTM) offers engineering and technology solutions.
Voss Capital, LLC, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Amentum Holdings, Inc. (NYSE:AMTM) is a newly formed, under-covered government services leader trading at an unwarranted 30%+ discount to trading peers due to spin-off dynamics and near-term selling pressure. With a $45 billion backlog (3.2x annual revenue), strong cash generation and a clear deleveraging path, AMTM offers a compelling re-rate opportunity as it executes its post-merger growth strategy.
AMTM was formed via a reverse Morris trust (RMT) merger between Amentum and Jacobs’ (ticker J) CMS division in Q3 2024, creating the second largest public government services provider by revenue. The company operates across five key markets: Defense (46%), Civil (17%), Environmental (15%), Space (11%), and Intelligence (11%), with growing demand across each segment driven by increasing geopolitical tensions, cybersecurity needs, space exploration, and government modernization initiatives. No single contract accounts for more than 4% of total revenue and AMTM’s scale provides a competitive advantage in bidding for larger contracts. About 65% of total revenues are earned through cost-plus contracts, which protects them in a high inflation environment, which would be our base case as Trump aims to reverse a decades long trend of globalization…” (Click here to read the full text)
While we acknowledge the potential of AMTM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMTM and that has 100x upside potential, check out our report about this cheapest AI stock.
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