September 23, 2021 8:00 AM
 — 
3
 min

Investor Day May Support Booz Allen Stock

buy

Weak Q2 growth makes our FY2022 outlook rather aggressive. We project organic revenue growth of 4-7%. However, we see the company aggressively recruiting staff amid strong demand for cybersecurity services and artificial intelligence solutions. Therefore, we have improved our estimate for revenue growth for fiscal 2023 to 9-10%. On the eve of Investor Day, which will take place on October 5, we are improving our estimate of the fair value of the company's shares from $ 93 to $ 100.

TIKR
BAH

PRICE
$80

TARGET PRICE
$100

UPSIDE
25%

S&P 500
4,365(-0.66%)

WTI СRUDE
63,13(-3.56%)

10Y UST
1,2730(0.00%)

BITCOIN
$44,785(-1.33%)

We expect management to provide a strong three-year forecast for revenue and net income growth during Investor Day. We also look forward to hearing positive comments from management regarding MGMT's plan for niche software deals to further empower cyberspace and artificial intelligence. To date, the perimeter of M&A deals includes Liberty (Low CodeNo Code solutions) and Tracepoint (digital forensics and incident response), as well as Latent (artificial intelligence software).

Booz Allen Hamilton is a leading contractor for US Government defense and intelligence departments, assisting in the fields of cyber security and intelligence operations. The company, which acts as prime contractor in nearly every instance, generates billions in sales each year from the delivery of highly technical skills to the Department of Defense, the National Security Agency, the IRS, and nearly every cabinet-level US Government department. It increasingly works with foreign governments and commercial clients as well. Investment company The Carlyle Group owns a majority interest in the consulting company, which was founded in 1914.

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