Booz Allen Hamilton Holding Corp. Coverage Initiated by Analysts at Citigroup Inc. (BAH)
Analysts at Citigroup Inc. assumed coverage on shares of Booz Allen Hamilton Holding Corp. (NYSE:BAH) in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. The firm set a “neutral” rating and a $19.00 price target on the stock. Citigroup Inc.’s target price would suggest a potential upside of 0.48% from the stock’s previous close.
The analysts wrote, “Sales are down ~8% over the last 2 years, but margins are up ~300 bps as the company has managed capacity to more efficiently match demand. BAH is still investing in anticipation of growth opportunities including cybersecurity, commercial, and international, while returning 205% of FCF to shareholders since March 2012 via regular & special dividends. We don’t love the demand fundamentals given the pressured US budget environment and rising risks (shorter duration awards, competition, and pricing pressure), but cash generation is resilient enough to drive continued shareholder returns via regular and special dividends.” Citi expects an approximate 120% FCF conversion through FY16E due to resilient EBITDA margins and falling capex. Gursky reported that the strong cash dynamics will likely send cash balances beyong $100 million which could result in a special dividend in addition to the regular dividend in 2014. The analyst expects sales to fall 4% through FY16 due to the vulnerability of short-cycle services. Despite this decrease, Gursky noted that Booz Allen Hamilton “is developing capabilities to address pockets of growth within the USG (i.e. Cyber) & is growing its non-USG business in the commercial (financials, health, utilities) and international (Middle East) markets.”
Booz Allen Hamilton Holding Corp. (NYSE:BAH) traded down 1.25% on Monday, hitting $18.91. The stock had a trading volume of 432,889 shares. Booz Allen Hamilton Holding Corp. has a 1-year low of $12.51 and a 1-year high of $22.27. The stock’s 50-day moving average is $18.12 and its 200-day moving average is $18.92. The company has a market cap of $2.726 billion and a price-to-earnings ratio of 11.33.
Booz Allen Hamilton Holding Corp. (NYSE:BAH) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.47 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.38 by $0.09. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter last year, the company posted $0.39 earnings per share. Booz Allen Hamilton Holding Corp.’s revenue was down .6% compared to the same quarter last year. Analysts expect that Booz Allen Hamilton Holding Corp. will post $1.66 EPS for the current fiscal year.
Separately, analysts at TheStreet upgraded shares of Booz Allen Hamilton Holding Corp. from a “hold” rating to a “buy” rating in a research note to investors on Friday, November 1st. Four investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $21.73.
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a united States-based company that provides of management and technology consulting services to the United States government in the defense, intelligence and civil markets.
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