Morgan Stanley Raises Amentum Rating to Equalweight and Increases Price Target to $35 from $20
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 26 2025
0mins
Should l Buy AMTM?
Source: Yahoo Finance
- Company Overview: Amentum Holdings (AMTM) has received an average rating of overweight from analysts.
- Price Target Updates: The article includes updates regarding price target details for Amentum Holdings.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMTM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMTM
Wall Street analysts forecast AMTM stock price to rise
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 30.870
Low
30.00
Averages
35.75
High
40.00
Current: 30.870
Low
30.00
Averages
35.75
High
40.00
About AMTM
Amentum Holdings, Inc. is a global advanced engineering and technology solutions provider to a broad base of the United States and allied government agencies, supporting programs of critical national importance across energy and environmental, intelligence, space, defense, civilian and commercial end-markets. It offers a range of capabilities, including intelligence and counter-threat solutions, data fusion and analytics, engineering and integration, environmental solutions, advanced test, training and readiness, and citizen solutions. Its segments include Digital Solutions (DS) and Global Engineering Solutions (GES). The DS segment offers advanced digital and data-driven solutions including intelligence analytics, space system development, cybersecurity, and next-generation information technology for the federal government and commercial clients. The GES segment offers large-scale environmental remediation, clean energy, platform engineering, sustainment and supply chain management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amentum Secures UK Hypersonic Missile Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise to the UK Ministry of Defence, aiming to accelerate weapon development and enhance collaboration with Australia and the US, reflecting the strategic significance of the AUKUS agreement.
- Joint Programme Office Setup: Amentum will establish a Joint Programme Office and System Engineering Delivery Advisory Team to develop detailed engineering design requirements for the MOD's hypersonic weapon system within a 15-month timeframe, with a potential three-year extension for future phases.
- Technical Collaboration: Amentum will collaborate with subcontractors Ebeni Ltd and Synthetik Applied Technologies UK Ltd to deliver project lifecycle solutions, including systems engineering, mission planning, and test design, aimed at enhancing the UK's defense industrial base and creating job opportunities.
- Strategic Implications: This contract not only advances the UK's hypersonic capabilities but also fosters an innovative partnership approach that breaks down traditional organizational boundaries, promoting rapid response and technological advancement in the defense sector, aligning with the UK's Defense Industrial Strategy.
See More
Amentum to Establish New Global Headquarters in Virginia
- New Headquarters Announcement: Amentum has announced plans to open a new global headquarters in Reston, Virginia, in early 2027, leasing 45,000 square feet to enhance operational efficiency and employee collaboration.
- Facility Features: The new headquarters will be located in a LEED-Gold certified sixteen-story office tower with direct access to the Silver Line Metro, expected to provide a better working environment and support the company's expansion in growth markets such as nuclear energy and space systems.
- Cost Optimization: The design of the new facility will help streamline operating costs, further enhancing Amentum's competitiveness in the rapidly growing nuclear and space sectors, and is expected to attract more high-quality talent.
- Financial Outlook: Amentum reaffirms its revenue guidance for fiscal 2026 at $13.95 billion to $14.3 billion, maintaining an optimistic outlook for future growth despite challenges in meeting performance expectations.
See More
COMSTOCK ANNOUNCES AMENTUM'S ARRIVAL AT RESTON STATION
- Company Announcement: Comstock has announced a new agreement to provide services to Reston Station, enhancing their operational capabilities in the area.
- Strategic Partnership: The partnership aims to leverage Comstock's expertise in real estate development and management to improve the infrastructure and services at Reston Station.
- Community Impact: This collaboration is expected to positively impact the local community by creating jobs and improving access to amenities.
- Future Developments: Comstock plans to implement innovative solutions and sustainable practices in their projects at Reston Station, aligning with modern urban development trends.
See More
Amentum Secures UK Hypersonic Strike Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise to the UK Ministry of Defence under a 15-month contract, with a potential three-year extension, aimed at accelerating weapon development and enhancing sovereign capabilities.
- Technological Collaboration: The project will strengthen collaboration with Australia and the United States through the AUKUS agreement, as Amentum establishes a Joint Programme Office to develop detailed engineering design requirements for the hypersonic weapon system demonstrator, ensuring effective implementation.
- Lifecycle Solutions: Amentum will deliver project lifecycle solutions, including systems engineering, mission planning, sensor platform integration, and test design, aimed at enhancing the UK’s defense industrial base and creating job opportunities across the country.
- Innovative Partnership Model: This contract exemplifies the innovative partnership approach demanded by the UK Defence Industrial Strategy, fostering collaboration among large companies, SMEs, and academia to rapidly deliver critical sovereign capabilities and strengthen national security.
See More
Amentum Secures UK Hypersonic Program Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise for the UK's hypersonic strike capabilities, with the contract awarded by Team Hypersonics UK under the Ministry of Defence to accelerate weapon development and enhance sovereign capabilities.
- Project Duration: The IMP contract spans 15 months with a potential three-year extension, during which Amentum will establish a Joint Programme Office to develop detailed engineering design requirements, ensuring effective testing of the hypersonic weapon system.
- Technical Collaboration: Amentum will collaborate with subcontractors Ebeni Ltd and Synthetik Applied Technologies UK Ltd to deliver project lifecycle solutions, including systems engineering, mission planning, and sensor platform integration, driving innovation and collaboration across the supply chain.
- Strategic Importance: This contract exemplifies the innovative partnership approach demanded by the UK Defence Industrial Strategy, aiming to break down traditional organizational boundaries, strengthen the defense industrial base, and support jobs across the UK while enhancing national security.
See More
Amentum Q1 Financial Results Lead to Stock Decline
- Mixed Financial Results: Amentum reported Q1 2026 adjusted diluted EPS of $0.54, surpassing the $0.52 consensus, yet revenue fell short at $3.24 billion compared to the expected $3.32 billion, resulting in a 19.9% stock decline.
- Negative Free Cash Flow: The company reported negative free cash flow of $142 million in Q1 2026, a stark contrast to the positive $102 million in Q1 2025, indicating a deterioration in financial health that may undermine investor confidence.
- Fiscal 2026 Guidance: Amentum forecasts fiscal 2026 revenue between $13.95 billion and $14.3 billion, reflecting approximately 3% year-over-year growth, with adjusted EBITDA projected at $1.1 billion to $1.14 billion, suggesting cautious optimism from management about future performance.
- High Market Valuation: Despite anticipated revenue and EBITDA growth, Amentum's current P/E ratio stands at 75.2, prompting investors to consider whether to buy during the dip, especially when more attractive nuclear energy stocks are available in the market.
See More
Amentum Secures UK Hypersonic Missile Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise to the UK Ministry of Defence, aiming to accelerate weapon development and enhance collaboration with Australia and the US, reflecting the strategic significance of the AUKUS agreement.
- Joint Programme Office Setup: Amentum will establish a Joint Programme Office and System Engineering Delivery Advisory Team to develop detailed engineering design requirements for the MOD's hypersonic weapon system within a 15-month timeframe, with a potential three-year extension for future phases.
- Technical Collaboration: Amentum will collaborate with subcontractors Ebeni Ltd and Synthetik Applied Technologies UK Ltd to deliver project lifecycle solutions, including systems engineering, mission planning, and test design, aimed at enhancing the UK's defense industrial base and creating job opportunities.
- Strategic Implications: This contract not only advances the UK's hypersonic capabilities but also fosters an innovative partnership approach that breaks down traditional organizational boundaries, promoting rapid response and technological advancement in the defense sector, aligning with the UK's Defense Industrial Strategy.
See More
Amentum to Establish New Global Headquarters in Virginia
- New Headquarters Announcement: Amentum has announced plans to open a new global headquarters in Reston, Virginia, in early 2027, leasing 45,000 square feet to enhance operational efficiency and employee collaboration.
- Facility Features: The new headquarters will be located in a LEED-Gold certified sixteen-story office tower with direct access to the Silver Line Metro, expected to provide a better working environment and support the company's expansion in growth markets such as nuclear energy and space systems.
- Cost Optimization: The design of the new facility will help streamline operating costs, further enhancing Amentum's competitiveness in the rapidly growing nuclear and space sectors, and is expected to attract more high-quality talent.
- Financial Outlook: Amentum reaffirms its revenue guidance for fiscal 2026 at $13.95 billion to $14.3 billion, maintaining an optimistic outlook for future growth despite challenges in meeting performance expectations.
See More
COMSTOCK ANNOUNCES AMENTUM'S ARRIVAL AT RESTON STATION
- Company Announcement: Comstock has announced a new agreement to provide services to Reston Station, enhancing their operational capabilities in the area.
- Strategic Partnership: The partnership aims to leverage Comstock's expertise in real estate development and management to improve the infrastructure and services at Reston Station.
- Community Impact: This collaboration is expected to positively impact the local community by creating jobs and improving access to amenities.
- Future Developments: Comstock plans to implement innovative solutions and sustainable practices in their projects at Reston Station, aligning with modern urban development trends.
See More
Amentum Secures UK Hypersonic Strike Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise to the UK Ministry of Defence under a 15-month contract, with a potential three-year extension, aimed at accelerating weapon development and enhancing sovereign capabilities.
- Technological Collaboration: The project will strengthen collaboration with Australia and the United States through the AUKUS agreement, as Amentum establishes a Joint Programme Office to develop detailed engineering design requirements for the hypersonic weapon system demonstrator, ensuring effective implementation.
- Lifecycle Solutions: Amentum will deliver project lifecycle solutions, including systems engineering, mission planning, sensor platform integration, and test design, aimed at enhancing the UK’s defense industrial base and creating job opportunities across the country.
- Innovative Partnership Model: This contract exemplifies the innovative partnership approach demanded by the UK Defence Industrial Strategy, fostering collaboration among large companies, SMEs, and academia to rapidly deliver critical sovereign capabilities and strengthen national security.
See More
Amentum Secures UK Hypersonic Program Contract
- Contract Award: Amentum has been selected to provide missile design engineering and program management expertise for the UK's hypersonic strike capabilities, with the contract awarded by Team Hypersonics UK under the Ministry of Defence to accelerate weapon development and enhance sovereign capabilities.
- Project Duration: The IMP contract spans 15 months with a potential three-year extension, during which Amentum will establish a Joint Programme Office to develop detailed engineering design requirements, ensuring effective testing of the hypersonic weapon system.
- Technical Collaboration: Amentum will collaborate with subcontractors Ebeni Ltd and Synthetik Applied Technologies UK Ltd to deliver project lifecycle solutions, including systems engineering, mission planning, and sensor platform integration, driving innovation and collaboration across the supply chain.
- Strategic Importance: This contract exemplifies the innovative partnership approach demanded by the UK Defence Industrial Strategy, aiming to break down traditional organizational boundaries, strengthen the defense industrial base, and support jobs across the UK while enhancing national security.
See More
Amentum Q1 Financial Results Lead to Stock Decline
- Mixed Financial Results: Amentum reported Q1 2026 adjusted diluted EPS of $0.54, surpassing the $0.52 consensus, yet revenue fell short at $3.24 billion compared to the expected $3.32 billion, resulting in a 19.9% stock decline.
- Negative Free Cash Flow: The company reported negative free cash flow of $142 million in Q1 2026, a stark contrast to the positive $102 million in Q1 2025, indicating a deterioration in financial health that may undermine investor confidence.
- Fiscal 2026 Guidance: Amentum forecasts fiscal 2026 revenue between $13.95 billion and $14.3 billion, reflecting approximately 3% year-over-year growth, with adjusted EBITDA projected at $1.1 billion to $1.14 billion, suggesting cautious optimism from management about future performance.
- High Market Valuation: Despite anticipated revenue and EBITDA growth, Amentum's current P/E ratio stands at 75.2, prompting investors to consider whether to buy during the dip, especially when more attractive nuclear energy stocks are available in the market.
See More
