Why Is AMTM Stock Rising Today?
- Morgan Stanley upgraded the stock rating to 'Equal Weight' from 'Underweight', citing that the stock's risk/reward looks more balanced now. Morgan Stanley added that Amentum's commercial nuclear power opportunities could help offset part of its long-term 4% to 6% revenue growth gap. AMTM was among the top trending tickers on Stocktwits on Wednesday.
Shares of Amentum Holdings Inc. (AMTM) rose 2.5% in premarket on Wednesday following brokerage action after a better-than-expected fourth-quarter print earlier this week.
AMTM stock is on track to open higher for a third consecutive session. On Tuesday, the stock closed up over 18% to its highest in over a year.
Brokerage Action
Morgan Stanley upgraded Amentum's stock to 'Equal Weight' from 'Underweight' while raising its price target to $35 from $20, according to TheFly. The brokerage added that the stock's risk/reward looks more balanced now.
The firm noted that Amentum's commercial nuclear power opportunities could help offset part of its long-term 4% to 6% revenue growth gap, adding that its valuation remains relatively modest for a company with nuclear exposure.
Citizens JMP raised its price target on Amentum to $35 from $30 and reiterated an 'Outperform' rating. The firm cited solid fourth-quarter (Q4) results and CEO John Heller's view that Amentum is“well-positioned” as the government prioritizes efficiency, speed, and accountability. Citizens JMP noted that it still sees the stock as a compelling long-term appreciation opportunity.
Q4 Results
On Monday, Amentum posted earnings of $0.63 per share, ahead of the Street estimate of $0.59, according to Fiscal. Quarterly revenue came in at $3.93 billion, also beating estimates of $3.61 billion.
The company said growth was mainly driven by its Global Engineering Solutions segment, which saw revenue rise 9% on the back of new contract wins and the expansion of existing programs. Its Digital Solutions segment also posted revenue growth for the quarter.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits has remained 'extremely bullish' over the past 24 hours, accompanied by 'extremely high' message volumes. AMTM was among the top trending tickers on Stocktwits.
The stock has gained over 40% so far this year.
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