News

V2X (VVX) – Raising Price Target

Industrials
0 min read


Wednesday, October 16, 2024

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Raising Price Target. We are maintaining our Outperform rating on VVX shares but raising our price target to $72 from a prior $62. We believe V2X is well positioned for continued operating success. Recent results and contract awards highlight the power of V2X, in our view. At our new price target. VVX shares would trade at 0.8x our projected 2024 revenue and 10.6x our projected adjusted EBITDA for the year. These multiples are still below the peer group averages.

Rationale. On Monday, VVX shares closed at $65.14, above our $62 price target. Year-to-date, VVX shares have appreciated 40.3%, compared to a 10.5% rise over the same period for the Russell 2000 index. Given the business momentum exhibited in the first half of 2024 and our projections for the remainder of the year, we believe the momentum will continue for V2X.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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