01:20 PM EDT, 05/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price to $165 from $150, on a P/E of 25.1x our FY 2026 (Mar.) EPS forecast, a premium to both BAH's three-year historical average and current trading multiple amongst peers. In our view, the higher valuation is justified reflecting BAH's differentiated technology prowess, exemplified by its accelerating expansion into AI (FY 2024 AI revenue was $600M), coupled with its proven organic growth engine. We raise our FY 2025 EPS estimate to $5.94 from $5.63 and initiate FY 2026's at $6.57. BAH posted Mar-Q revenue of $2.8B, higher than the consensus by $50M, while adj-EPS of $1.33 beat by $0.10. Revenue growth of 14% Y/Y (all organic) was a result of broad-based increases across Defense (+20%) and Civil (+18%). Our neutral stance factors in the anticipated moderation in BAH's revenue growth (9% in FY 2025 and 5% in FY 2026 vs. 15% in FY 2024) and lack of margin expansion over the medium term. We expect adj-EBITDA margin of 11% in both FY 2025 and FY 2026, flat with FY 2024.