What Happened?
Shares of government engineering solutions provider Amentum Holdings (NYSE: AMTM) jumped 3.4% in the afternoon session after the company announced multiple significant contract wins related to nuclear energy and received positive analyst commentary.
Amentum secured a $207 million contract from the Dutch government to lead a consortium focused on nuclear power development. Additionally, the engineering company was awarded new contracts by EDF in the UK, worth up to $743 million, to provide solutions for the nation's reactor fleet and the new Hinkley Point C nuclear power plant. Following the news, Citizens reiterated its Market Outperform rating for the company, while BofA Securities raised its price target to $30.00 from $27.00.
After the initial pop the shares cooled down to $37.00, up 3.6% from previous close.
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What Is The Market Telling Us
Amentum’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 2.4% on the news that the company received positive analyst commentary, a credit rating upgrade, and a new contract award, pushed the stock to a 52-week high. The positive momentum followed several key developments. Cantor Fitzgerald raised its price target on the stock to $40 from $35, keeping an Overweight rating, after the company's fourth-quarter fiscal 2025 results surpassed expectations. BofA Securities also increased its price target to $30.
Amentum is up 21.4% since the beginning of the year, and at $37.00 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amentum’s shares at the IPO in September 2024 would now be looking at an investment worth $1,254.
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