Trump Will Be Good for Booz Allen Hamilton Holding Corporation (BAH), Says Drexel Hamilton Analyst
The Trump administration is good news for Booz Allen Hamilton Holding Corporation (NYSE: BAH), opines Drexel Hamilton analyst Brian Ruttenbur, who reiterated a Buy rating for the management consultant giant.
Ruttenbur noted that the President-elect plans to cut corporation tax as well as aims to increase defense and intelligence budgets. The budget boost could aid Booz Allen, which has recently received two government contracts- one to simplify General Services Administration’s websites and the second to develop a mobile app for the U.S. Postal Service.
Late last month, Booz Allen announced plans to acquire Maryland-based information technology contractor Aquilent for $250 million, with the transaction expected to close by this Sunday, December 29th. Aquilent has designed more than 100 websites for federal agencies and is expected to boost Booz Allen’s revenue by up to $35 million in fiscal year 2017 while bolstering its earnings operating margin of fiscal year 2018.
Four-star analyst Brian Ruttenbur is ranked #635 out of 4,291 analysts by financial accountability engine TipRanks. The tech-focused analyst has a 75% success rate of and an average return of 12.6%.
Ruttenbur raised his price target for Booz Allen to $44 from $37, which implies a just under 22% upside from where the stock is currently trading. Based on analyst recommendations made in the last three months, Booz Allen has an analyst consensus rating of Strong Buy, according to TipRanks.