Truist starts Amentum with Buy, sees opportunity in the volatility

Truist initiated coverage of Amentum with a Buy rating and $31 price target The stock’s volatile trading following the merger with Jacobs’ Critical Mission Solutions and Cyber and Intelligence businesses presents an opportunity for value creation with potential upside to “conservative” cost saving targets, the analyst tells investors in a research note. The firm expects Amentum’s 35% valuation discount to peers could narrow to 20% over the next two years as management builds credibility.