MCLEAN, Va. - Booz Allen Hamilton (NYSE: NYSE:BAH) has secured a seven-year contract valued at $419 million to provide the National Science Foundation (NSF) with Information Technology Mission Application Support (ITMAS). This contract extends Booz Allen's nearly two-decade partnership with NSF, focusing on modernizing and maintaining the agency's grants management system.
The contract involves end-to-end modern software development, employing scaled agile principles, DevSecOps automation, and cloud platform resiliency to enhance NSF's grants management systems.
Booz Allen, recognized by GovWin from Deltek as a leading provider of AI services to the federal government, will also incorporate AI technologies under this agreement to support the NSF's mission and U.S. scientific advancement.
Dan Tucker, senior vice president at Booz Allen, emphasized that the contract aligns with the company's VoLT (velocity, leadership, technology) business strategy, reinforcing its role as a key innovator in supporting scientific discovery and technological progress.
Lane Blackmer, principal at Booz Allen and program manager for the project, highlighted the team's diverse expertise and long-standing commitment to NSF's mission as critical to the contract win.
Booz Allen Hamilton, a strategic consultant for over a century, is focused on integrating technology and diverse talent to advance national civil, defense, and security priorities. The firm, headquartered in McLean, Virginia, employs approximately 34,200 people and reported revenues of $10.7 billion for the year ending March 31, 2024.
This news is based on a press release statement from Booz Allen Hamilton.
In other recent news, Booz Allen Hamilton has announced several significant developments. The consulting firm has appointed William Vass as its new Chief Technology Officer (CTO), effective June 17, 2024. Vass brings over four decades of experience in IT and technology innovation and is expected to play a crucial role in advancing the company's strategic growth objectives.
The firm has also made a strategic acquisition of PAR Government Systems Corporation (PGSC), a subsidiary of PAR Technology Corporation, to enhance its defense technology offerings. This move is expected to bolster Booz Allen's situational awareness, decision advantage, and ability to counter uncrewed aerial systems threats.
Analyst firms such as Truist Securities, Wells Fargo, and TD Cowen have positively revised their outlook on Booz Allen Hamilton. Truist Securities has increased its price target for the company from $145 to $160, citing strong fourth-quarter fiscal year 2024 results.
Wells Fargo also raised its price target to $169 from $158, following the company's surpassing of long-term growth projections. TD Cowen expressed optimism, raising the stock target from $158 to $177, highlighting strong demand and supply dynamics.
Booz Allen Hamilton, with a workforce of approximately 34,200 and a revenue of $10.7 billion for the 12 months ended on March 31, 2024, continues to invest in advanced technology solutions to address the nation's security priorities. These are recent developments in the company's ongoing efforts to integrate innovative technology with its deep consulting expertise to deliver impactful solutions to its clients.
InvestingPro Insights
As Booz Allen Hamilton (NYSE: BAH) embarks on its extended partnership with the National Science Foundation, the company's financial health and market performance provide a solid backdrop for its strategic initiatives. Booz Allen's commitment to innovation and technology is mirrored in its financial metrics, with a robust market capitalization of $19.92B USD.
The company's focus on maintaining a steady dividend is evident, as it has raised its dividend for 8 consecutive years, indicating a strong commitment to returning value to shareholders. This dedication is further underscored by the company's track record of maintaining dividend payments for 13 consecutive years.
From an investment perspective, Booz Allen's stock is currently trading at a P/E ratio of 33.31, which is considered high. Still, it is trading at a low PEG ratio of 0.26 when considering the last twelve months as of Q4 2024, which suggests that the company's earnings growth may not be fully reflected in its current share price. This could signal a potential opportunity for investors looking at near-term earnings growth prospects.
Analysts have taken note of Booz Allen's performance and potential, with 4 analysts having revised their earnings upwards for the upcoming period. This optimism is supported by the company's solid revenue growth of 15.15% over the last twelve months as of Q4 2024, demonstrating the firm's ability to expand its business operations effectively.
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