RBC Raises Price Target on Amentum Holdings (AMTM)

On Wednesday, May 21, RBC Capital Markets raised the price target for Amentum Holdings, Inc. (NYSE:AMTM) to $24 from $22 while keeping a “Sector Perform” rating. This decision came after a series of investor meetings between the company’s top executives and investors.

Amentum Holdings, Inc.’s (NYSE:AMTM) CEO John Heller, CFO Travis Johnson, and Head of Investor Relations Nathan Rutledge discussed the company’s financial strategies and future prospects with investors, focusing especially on the company’s free cash flow (FCF) and plans for organic growth.

A cybersecurity expert monitoring the security of the company’s assets, emphasizing the importance of data protection.

Long-term investors were interested in Amentum Holdings, Inc.’s (NYSE:AMTM) FCF prospects, which are supported by the company’s plan to de-leverage. There is also an expectation that the company will see organic growth in the second half of 2025 and the full fiscal year 2026.

However, some concerns regarding risks to the company’s revenue were raised. These risks come from the timing of contract awards and the potential effects of the Department of Defense’s budgetary decisions. Despite this, RBC Capital Markets believes that as confidence in Amentum Holdings, Inc.’s (NYSE:AMTM) FCF grows, the company’s market value could rise.

Amentum Holdings, Inc. (NYSE:AMTM) is an American government and commercial services contractor that specializes in advanced engineering and innovative technology solutions for the environment, space, intelligence, and defense markets. The company serves the US and allied government agencies.

While we acknowledge the potential of AMTM as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.