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

Group 1 - Amentum Holdings Inc. (NYSE:AMTM) is currently considered one of the best new stocks to buy, with Morgan Stanley raising its price target to $20 from $19 while maintaining an Underweight rating [1] - The company reported Q3 2025 earnings with a revenue of $3.561 billion, reflecting a 66% year-over-year increase [1][2] - Amentum achieved a net income of $10 million, a significant improvement from a net loss of $26 million year-over-year, with a diluted EPS of $0.04 compared to a loss per share of $0.29 in 2024 [2] Group 2 - Digital Solutions revenues increased by 12% year-over-year to $1.421 billion, driven by new commercial contract awards, leading to a 21% increase in Adjusted EBITDA to $114 million [3] - Global Engineering Solutions' revenues decreased by 3% to $2.140 billion due to the expected ramp-down of certain programs, with a corresponding 2% decrease in Adjusted EBITDA to $160 million [3] Group 3 - Amentum Holdings provides engineering and technology solutions to the US and allied government agencies, although there are suggestions that certain AI stocks may offer greater upside potential with less downside risk [4]