Good News, Everyone! Goldman Sachs Says Booz Allen Hamilton Stock is Going Down Like a Moray Eel!

Not the Mama!

Alright meatbags Leela here reporting live from the year 3024 – where apparently Goldman Sachs still exists and is still downgrading things. This time it's Booz Allen Hamilton some kind of company that makes… well I’m not entirely sure but it sounds important and boring like a robot tax audit! Apparently Goldman Sachs says owning their stock is about as smart as letting Zapp Brannigan pilot the Planet Express ship. Which is to say not smart at all!

To Sell or Not to Sell? That is the Question!

Some fancy analyst named Noah Poponak – sounds like a rejected Muppet – downgraded Booz Allen Hamilton to 'sell.' He thinks their stock will plummet faster than Fry trying to understand quantum physics. He even slashed the price target which I assume is like setting a self destruct button on their portfolio. He is signaling a 14% downside. Downside? More like down a whole flight of stairs side!

Flat is the New Up (or Down I Can Never Tell)

Poponak – I'm still not convinced he isn't a puppet – says Booz Allen's revenue is going flatter than my cyclops eye after a Bender induced bender. Apparently the federal government is pinching pennies harder than Mr. Burns after a power outage. Federal civilian spending is under pressure. They are also saying the priorities are shifting within the Department of Defense. What this means is less money for everyone which sounds pretty bad!

Margin Call: It's a Bird It's a Plane It's Your Profits Plummeting!

Not only is the revenue drier than the Martian desert but the margins are getting tighter than Bender's chassis after a compression test. Contract structures are changing. The government securities industry is becoming more fragmented which according to Poponak puts even more pressure on the profit margins. Looks like those robots aren't getting their oil baths this week!

Overvalued? More Like Overcooked!

Booz Allen Hamilton is apparently trading at a premium compared to its peers but Goldman Sachs thinks that's about as justified as giving Scruffy a promotion. The high valuation was driven by growth and margin but those factors are facing pressure now. The analyst suggests that Booz Allen isn't as "insulated" from change as they thought meaning their stock is about to get a one way ticket to Splitsville. Population: their investors' wallets.

Doooooooom!

So what does all this mean? Well if you own Booz Allen Hamilton stock you might want to sell it faster than Hermes Conrad running from a paperwork avalanche. Shares already fell more than 2% in the premarket which is like the first domino falling in a very expensive chain reaction of financial doom! Remember folks sometimes the best investment advice is to just listen to a one eyed space captain. Now if you'll excuse me I have a date with a giant space slug. Wish me luck!