Morgan Stanley Raises Amentum Holdings (AMTM) PT to $20 Despite Underweight Rating

Amentum Holdings Inc. (NYSE:AMTM) is one of the best new stocks to buy right now. On September 18, Morgan Stanley raised the firm’s price target on Amentum to $20 from $19, while keeping an Underweight rating on the shares after fine-tuning the firm’s estimates. Prior to this rating, the company also reported its Q3 2025 earnings results, where Amentum made a revenue of $3.561 billion, which was a 66% increase year-over-year.

This growth was attributed to the combination of Jacobs’ Critical Mission Solutions and Cyber & Intelligence/CMS businesses. The company achieved a net income of $10 million, which was an improvement from a net loss of $26 million year-over-year, with a diluted EPS of $0.04, up from a loss per share of $0.29 in 2024.

A review of segment performance shows that Digital Solutions revenues increased 12% year-over-year to $1.421 billion due to new commercial contract awards, which led to a 21% increase in Adjusted EBITDA to $114 million. Conversely, Global Engineering Solutions’ revenues for the quarter decreased 3% to $2.140 billion due to the expected ramp-down of certain programs. The segment’s Adjusted EBITDA saw a corresponding 2% decrease to $160 million.

Amentum Holdings Inc. (NYSE:AMTM) provides engineering and technology solutions to the US and allied government agencies.

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Disclosure: None. This article is originally published at Insider Monkey.