BOOZ ALLEN HAMILTON (=) : Proceeding with Caution - Initiate at Neutral

Research evidence excerpt

BOOZ ALLEN HAMILTON (=) : Proceeding with Caution - Initiate at Neutral

EQUITIES

AEROSPACE & DEFENSE

BOOZ ALLEN HAMILTON NEUTRALPRICE* USD76.4  TARGET PRICE USD80 (UPSIDE 5%)

Proceeding with Caution - Initiate at Neutral

BAH now trades at a historic discount to peers, but it remains unclear if it can repair its relationships26 MAY 2026

Securities Research Report with its government customers. Margin upside looks challenging given contract/end market mix, and

Production time: 11:13 (London time)

we initiate at Neutral with an $80 PT (5% upside).

Research Analysts & Publishing Entities

Matthew Akers, CFA Will BAH continue to be a target of federal cost cuts?

BNP Paribas Securities Corp1 BAH was a primary target of early cost cuts by DOGE and the Department of War, and more recently

+1 (201) 951-5967

matthew.akers@us.bnpparibas.com the Treasury cancelled BAH contracts due to a data breach involving a former employee. We see

significant upside if BAH’s outsized growth can return, but we await more evidence it has won back

Cashen Keeler

its key customer before buying into the re-acceleration.BNP Paribas Securities Corp1

+1 (201) 989-2413

cashen.keeler@us.bnpparibas.com Can civil demand return?

BAH’s civil business has been hit hard, down >20% on the government shutdown and shift in fundingLuke Leone, CFA

BNP Paribas Securities Corp1 priorities toward defense. BAH could be a beneficiary from a pivot back to civil spending, if the

+1 (201) 772-1868 balance of power in Congress shifts toward Democrats this fall as mid-term polls currently indicate.

luke.leone@us.bnpparibas.com

Margin outlook appears difficult

BAH's margins were flattish in FY26, with pressure from contract disruption and mix. Recent contract