Morgan Stanley upgrades Amentum Holdings to 'equal weight'; raises PT

Morgan Stanley upgrades government contractor Amentum Holdings AMTM.N to "equal weight" from "under weight"; raises PT to $35 from $20

Shares of AMTM up 2.5% at $30.75 premarket

New price target represents almost 16.7% upside to stock's last close

Brokerage sees AMTM as more balanced investment, with upside from nuclear projects and strong fundamentals

Morgan Stanley forecasts revenue CAGR of ~2.3% (FY25–28), with 2027E EBITDA margin of ~8.1%

5 of 10 brokerages rate stock "buy" or higher, 5 "hold"; their median PT is $34 - data compiled by LSEG

As of last close, AMTM stock up ~42.7% YTD