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Truist raises Booz Allen Hamilton target to $160 on growth outlook

Published 2024-05-24, 04:32 p/m
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On Friday, Truist Securities adjusted its price target for Booz Allen Hamilton (NYSE:BAH), a management and information technology consulting firm, to $160 from the previous $145. The firm maintained its Hold rating on the stock.

The revision follows Booz Allen Hamilton's fiscal fourth quarter 2024 results, which showcased double-digit organic growth in its Defense and Civil segments. This performance has set the stage for continued revenue growth, with fiscal year 2025 guidance surpassing analyst expectations.

The company's broad-based strength is supported by a substantial $64 billion qualified pipeline, which is anticipated to sustain organic growth rates above those of its peers. Additionally, Booz Allen Hamilton's artificial intelligence revenues have reached over $600 million in the past year, with projections to hit a run-rate of over $1 billion in the next approximately three years.

InvestingPro Insights

Booz Allen Hamilton (NYSE:BAH) has demonstrated a commendable track record of financial performance, which is reflected in the recent price target adjustment by Truist Securities. According to InvestingPro data, the company's market capitalization stands at a robust 20.57 billion USD. This is coupled with a P/E ratio of 50.89, indicating a high valuation by the market, possibly tied to the company's strong growth prospects.

The firm's revenue growth over the last twelve months has been impressive at 13.9%, underscoring its ability to expand effectively. Furthermore, Booz Allen Hamilton's dividend yield of 1.34% and a noteworthy 18.6% dividend growth in the same period exemplify its commitment to returning value to shareholders. This is particularly significant given that the company has raised its dividend for 8 consecutive years, a testament to its financial health and stability.

Investors considering Booz Allen Hamilton may find additional insights with InvestingPro, which offers more than 10 InvestingPro Tips, including expectations for net income growth this year and the company's moderate level of debt. For those looking to delve deeper into the company's financials and future prospects, using the coupon code PRONEWS24 can provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive investment analysis tool.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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