BofA Double-Downgrades Booz Allen (BAH) After Weak Q2 Results; Stock Drops 10%
BofA Securities has slashed its rating on Booz Allen Hamilton (BAH) from Buy to Sell, accompanied by a drastic price target reduction from $160 to $90. The MOVE follows disappointing Q2 results, with adjusted earnings of $1.49 per share missing estimates and revenue declining 8.1% year-over-year to $2.89 billion. A 22% drop in the Civil business segment—contributing a third of total revenue—dragged performance, attributed to sluggish contract awards and government funding uncertainty.
Cost-cutting measures, including senior-level layoffs, aim to mitigate the revenue shortfall. Despite a 2.9% backlog growth to $40 billion and a robust 1.7x book-to-bill ratio, the company lowered its full-year outlook. The stock plunged 10% in Friday’s session, reflecting eroding investor confidence.
