If there is one thing that is sure to move a stock, it is an upcoming catalyst that turns out to be positive. Sometimes it is earnings, and sometimes it can be anything from an accretive acquisition to a stock split to a resolution of legal issues. In a new report, Bank of America Merrill Lynch spots some upcoming catalysts for some of the top ranked Smid-Cap Alpha list of stocks to buy.
We screened the Merrill Lynch list looking for the stocks with the biggest upside to the posted target prices, that also had positive upcoming catalysts that could move the share prices.
Booz Allen Hamilton
This company just scored a major defense contract. Booz Allen Hamilton Holding Corp. (NYSE: BAH) is a leading provider of management consulting, technology and engineering services to the U.S. government in defense, intelligence and civil markets, and to major corporations and not-for-profit organizations. The Merrill Lynch team sees the company using the firm’s cash stockpile for acquisitions, and it sees the possibility for increased dividend payouts.
The Merrill Lynch team also sees the potential for additional growth at the company through potential acquisitions. With cybersecurity also becoming a major priority for U.S. commercial companies, Booz Allen could benefit there as well.
Booz Allen shareholders are currently paid a 1.98% dividend. Merrill Lynch puts a $30 price target on the stock, while the Thomson/First Call consensus price target is $29.90. Shares closed trading on Wednesday at $26.27.