UBS Maintains Neutral Rating on Amentum Holdings (AMTM) Due to Mixed Market Reactions, Selective Growth

Amentum Holdings Inc. (NYSE:AMTM) is one of the cheap hot stocks to invest in right now. On January 15, UBS increased its price target for Amentum to $37 from $33 while maintaining a Neutral rating and noted a selective market environment where stock reactions have been mixed despite stable supply chains and strong demand.

The firm observed that while commercial original equipment build rates are improving and supporting a shift toward normalized valuations, the Defense and Government IT sectors remain heavily influenced by geopolitical narratives and budget cycles rather than immediate earnings catalysts. Additionally, while UBS highlighted robust growth in the aftermarket segment, it cautioned investors regarding a potential deceleration risk in H2 of the year.

On January 14, Truist also raised its price target for Amentum Holdings Inc. (NYSE:AMTM) to $42 from $34 with a Buy rating on the shares. As part of a 2026 government services sector outlook, the firm noted that the One Big Beautiful Bill is expected to enhance organic growth expectations for the latter half of 2026 and 2027. However, Truist cautioned that increased defense spending may lead to further reductions in civil budgets.

Amentum Holdings Inc. (NYSE:AMTM) provides engineering and technology solutions in the US and internationally. It operates through two segments: Digital Solutions and Global Engineering Solutions.

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