Booz Allen Hamilton undervalued due to overlooked 71% National Security growth and AI services boost

Booz Allen Hamilton (BAH) is currently undervalued as the market focuses too much on its shrinking civil segment, ignoring its 71% National Security business which is growing with a record backlog. Trading at about 11 times forward earnings and offering a 3.3% dividend, BAH benefits from strong cash flow and a growing AI services segment, the largest provider to the US government. The company is expected to see a re-rating with a one-year target price of $95, representing a potential 36% upside. This makes BAH a compelling buy for investors looking at government services with growth in National Security and AI.

Booz Allen Hamilton (BAH) trades at USD 69.72 on Pluang as of Oct 08, 2026 18:43 WIB, which is closer to its 52-week low of USD 59.71 than its high of USD 102.93. Its 3.44% dividend yield stands out in the Industrials sector, and the stock gained 1.50% in the last day. This price level contrasts with the article's mention of a $95 target price, highlighting a significant potential upside from current market pricing.