On Tuesday, Booz Allen Hamilton (NYSE:BAH) saw its price target increased by Jefferies to $180.00, up from the previous target of $170.00, while the firm maintained a Buy rating on the stock. The adjustment comes ahead of the company's scheduled report for its fourth-quarter earnings of fiscal year 2024, which is set to be released before the market opens on May 24.
Jefferies forecasts an adjusted earnings per share (EPS) for Booz Allen Hamilton's FY24 at $5.35, which is slightly below the consensus estimate of $5.40. This projection is based on an anticipated modestly lower top-line growth of 10%, which is less than the consensus growth expectation of 12% and the 15% year-to-date figure for the fiscal year.
Looking further ahead into fiscal year 2025, Jefferies estimates an organic growth of approximately 5% for Booz Allen Hamilton, alongside an EBITDA margin of around 11%.
The guidance for FY25, which may be introduced with a conservative tone, is expected to be in the range of $5.45 to $5.70. This is compared to Jefferies' own estimate and the consensus, which stand at $5.55 and $5.89, respectively.
The analyst's commentary highlights the anticipation of conservative guidance from Booz Allen Hamilton for the upcoming fiscal year. The firm's analysis suggests that while the growth rate may slow down compared to the current fiscal year, the company is still positioned for positive performance in the year ahead.
InvestingPro Insights
As Booz Allen Hamilton (NYSE:BAH) prepares to release its Q4 earnings report, investors may find value in observing several key metrics and insights. With a market capitalization of $19.47 billion, Booz Allen Hamilton commands a significant presence in its industry. The company's P/E Ratio stands at a high 48.5, which could indicate investor confidence in its future earnings potential or perhaps reflect a premium price compared to its earnings. Additionally, Booz Allen Hamilton has demonstrated a solid revenue growth of 13.9% over the last twelve months as of Q3 2024, showcasing its ability to expand its business operations effectively.
An InvestingPro Tip worth noting is that Booz Allen Hamilton has raised its dividend for 8 consecutive years, which may appeal to income-focused investors. Furthermore, the company's net income is expected to grow this year, suggesting that its financial health could continue to improve. For those considering an investment in Booz Allen Hamilton, these aspects, coupled with the fact that the stock generally trades with low price volatility, could provide a sense of stability and potential for steady returns.
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