AMENTUM HOLDINGS INC (-) : See Growth & Margin Below Peers; Initiate at Underperform

研报英文原文证据摘录

AMENTUM HOLDINGS INC (-) : See Growth & Margin Below Peers; Initiate at Underperform

EQUITIES

AEROSPACE & DEFENSE

AMENTUM HOLDINGS INC UNDERPERFORMPRICE* USD23.2  TARGET PRICE USD22 (DOWNSIDE 5%)

See Growth & Margin Below Peers; Initiate at Underperform

We expect Amentum’s organic growth and margins to trail peers, and think a discounted valuation is26 MAY 2026

Securities Research Report warranted. We initiate coverage at Underperform with a $22 PT, -5% downside.

Production time: 11:12* (London time)

Research Analysts & Publishing Entities Tough to hit 2028 growth target

Matthew Akers, CFA Amentum grew MSD in 2025 and targets 3% growth in 2026 (~2% decline including 1x items), while

BNP Paribas Securities Corp1 sales would have to accelerate to ~7% CAGR in 2027-28 to hit its long-term targets. Nuclear/space

+1 (201) 951-5967

matthew.akers@us.bnpparibas.com are potential growth areas, however we are not sure this will be sufficient to drive re-acceleration as

the remaining portion of the business looks less differentiated vs peers. We model LSD CAGR growth

Cashen Keeler

for AMTM through 2028, below consensus and well below the rate implied in its long-term guidance.BNP Paribas Securities Corp1

+1 (201) 989-2413

cashen.keeler@us.bnpparibas.com Margins likely remain below peers

We think it will be difficult for AMTM to close the ~300 bps EBITDA margin gap vs its peers. AMTMLuke Leone, CFA

BNP Paribas Securities Corp1 has outsized exposure to cost-reimbursable work and recent federal contracts data imply a similar

+1 (201) 772-1868 mix going forward. We see only modest margin expansion beyond the current ~8% level, and would

luke.leone@us.bnpparibas.com

need to see a significant shift in business mix to expect much expansion from here.