Goldman Sachs has adjusted its outlook on $BAH, moving the stock from a “Buy” to a “Neutral” rating and cutting its price target down to $109. The reasoning? A rising number of contract reductions in Booz Allen Hamilton’s government portfolio—more than what its industry peers are currently facing. This trend signals potential headwinds for future revenue growth and adds a layer of uncertainty to its otherwise stable business model.
Another contributing factor is valuation. Booz Allen is currently trading at elevated multiples, which has raised eyebrows given the tougher year-over-year comparisons the firm is expected to face in the upcoming quarters. This blend of tightening federal budgets, peer outperformance, and stretched valuation prompted Goldman’s cautious reassessment.
Despite this, $BAH remains a notable dividend payer in the defense and government services sector. Here’s a quick snapshot of its dividend fundamentals:
📌 Annual Dividend: $2.20 per share
📌 Dividend Yield: ~2.02%
📌 Payout Ratio: 32.86%
📌 Dividend Growth (1Y): 8.33%
📌 Dividend Increases: 10 consecutive years
📌 Ex-Dividend Date: February 14, 2025
📌 Next Expected Payment: June 2025
The dividend profile remains one of $BAH’s strong suits, backed by a conservative payout ratio and consistent annual increases. For income-focused investors, this stability might still make $BAH worth watching—even as the firm works through a tougher contract environment.