Zacks Investment Research Upgrades Booz Allen Hamilton (BAH) to Strong-Buy

Booz Allen Hamilton (NYSE:BAH) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Wednesday. The brokerage currently has a $53.00 target price on the business services provider’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 11.49% from the stock’s current price.

According to Zacks, “Booz Allen Hamilton’s Vision 2020, the strategy aimed at achieving sustainable long-term growth, is progressing well as it is seeing significantly higher backlog growth, shift in talent to more technical expertise and a strong performance in the global commercial market. The company is also focussing on innovation areas such as Machine Intelligence and Directed Energy, thereby ensuring business development over the long haul. The stock has outperformed its industry in the past year. On the flip side, Booz Allen could see an escalation in capital expenditure due to higher investments in facilities, systems, infrastructure and technology. Seasonality continues to weigh on the company’s profitability. Additionally, high debt levels may weigh on the company's future expansion and worsen its risk profile.”

A number of other brokerages have also recently weighed in on BAH. Drexel Hamilton restated a “hold” rating on shares of Booz Allen Hamilton in a research report on Monday, October 29th. Wells Fargo & Co raised their price target on Booz Allen Hamilton from $50.00 to $55.00 and gave the company an “outperform” rating in a research report on Tuesday, October 30th. Citigroup raised their price target on Booz Allen Hamilton from $46.00 to $52.00 and gave the company a “neutral” rating in a research report on Tuesday, October 30th. Raymond James raised their price target on Booz Allen Hamilton from $53.00 to $55.00 and gave the company an “outperform” rating in a research report on Monday, October 29th. Finally, Credit Suisse Group raised their price target on Booz Allen Hamilton from $53.00 to $56.00 and gave the company an “outperform” rating in a research report on Tuesday, October 30th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $53.25.

NYSE:BAH opened at $47.54 on Wednesday. The firm has a market capitalization of $6.70 billion, a price-to-earnings ratio of 19.63, a price-to-earnings-growth ratio of 1.23 and a beta of 1.17. The company has a debt-to-equity ratio of 2.67, a current ratio of 1.45 and a quick ratio of 1.45. Booz Allen Hamilton has a 1 year low of $35.21 and a 1 year high of $52.88.

Booz Allen Hamilton (NYSE:BAH) last released its quarterly earnings data on Monday, October 29th. The business services provider reported $0.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.08. Booz Allen Hamilton had a return on equity of 58.75% and a net margin of 5.50%. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the prior year, the business posted $0.50 earnings per share. Booz Allen Hamilton’s revenue was up 4.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Booz Allen Hamilton will post 2.65 EPS for the current year.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Denali Advisors LLC boosted its stake in shares of Booz Allen Hamilton by 224.5% during the third quarter. Denali Advisors LLC now owns 34,400 shares of the business services provider’s stock valued at $1,707,000 after acquiring an additional 23,800 shares during the last quarter. HPM Partners LLC acquired a new stake in shares of Booz Allen Hamilton during the second quarter valued at $390,000. First Hawaiian Bank acquired a new stake in shares of Booz Allen Hamilton during the third quarter valued at $848,000. Anchor Capital Advisors LLC boosted its stake in shares of Booz Allen Hamilton by 21.9% during the third quarter. Anchor Capital Advisors LLC now owns 722,654 shares of the business services provider’s stock valued at $35,865,000 after acquiring an additional 129,875 shares during the last quarter. Finally, Investment Partners LTD. acquired a new stake in shares of Booz Allen Hamilton during the third quarter valued at $318,000. 93.17% of the stock is currently owned by institutional investors and hedge funds.

About Booz Allen Hamilton

Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations.

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