Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - UBS raised its price target on Booz Allen Hamilton (NYSE:BAH) to $119.00 from $115.00 on Monday, while maintaining a Neutral rating on the government services contractor. According to InvestingPro analysis, the company appears undervalued at its current price of $107.69, with a P/E ratio of 13.3x that looks attractive relative to its growth prospects.
The price target adjustment comes amid concerns about the company’s backlog and hiring trends. UBS noted an 8% sequential decline in funded backlog and ongoing volatility in the customer and award environment, raising questions about the second-half acceleration implied in Booz Allen’s guidance. Despite these challenges, InvestingPro data shows the company maintains strong financial health with a current ratio of 1.78 and operates with moderate debt levels. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
Client staff headcount dropped 7% sequentially, as previously communicated by the company. UBS highlighted that without offsetting hiring, achieving the projected 0-4% growth for the year appears challenging.
The research firm’s obligation tracking shows no signs of stabilization yet, potentially impacting revenue beyond the second-quarter trough that Booz Allen has identified. This led UBS to model below the low end of the company’s fiscal year 2026 revenue and EBITDA guidance.
UBS acknowledged Booz Allen’s historical ability to adapt to evolving environments but cautioned that the current contracting environment is "far from normal," suggesting that without a normal government fiscal year-end budget flush to support the second half, guidance could be cut.
In other recent news, Booz Allen Hamilton reported its first-quarter 2026 earnings, with earnings per share surpassing expectations at $1.48 compared to the forecasted $1.46. However, the company experienced a shortfall in revenue, reporting $2.92 billion against an anticipated $2.97 billion. This revenue result was also noted to be 0.6% lower year-over-year. Following these earnings results, Stifel adjusted its price target for Booz Allen Hamilton, raising it from $112 to $119 while maintaining a Hold rating on the stock. The price target revision reflects the company’s financial performance and potential cash upside. These developments highlight the company’s mixed financial results and the analysts’ response to its earnings performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.