BofA cited growing momentum in V2X’s core logistics and operations work, as well as its ability to secure contracts in higher-value, higher-margin segments, as key takeaways from the company’s recent contract wins.
V2X Inc. (VVX) received a vote of confidence from Bank of America on Wednesday, as the firm upgraded its rating on the defense contractor’s stock to ‘Buy’ from ‘Neutral.’
Along with the upgrade, BofA lifted its price target to $65, up from $55, as per TheFly. This indicates a potential upside of more than 19% from Tuesday’s close at $54.56. The brokerage cited growing momentum in V2X’s core logistics and operations work, as well as its ability to secure contracts in higher-value, higher-margin segments, as key takeaways from the company’s recent contract wins.
V2X stock traded over 9% higher by Wednesday afternoon. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral’ territory the previous day amid ‘normal’ message volume levels.
According to a CNBC report, a recently secured contract tied to the T-6 military aircraft served as a ‘key growth enabler’. Mariana Perez Mora, the BofA analyst behind the upgrade, expects V2X to start seeing full revenue contributions from the new deal by 2027. BofA highlighted the company’s full-lifecycle support strategy as a key differentiator in a crowded defense contracting space, the report said.
The ability to secure contracts in higher-growth areas is expected to drive sustained earnings acceleration, the firm added. For the fiscal year 2025, the company expects revenue between $4.375 billion and $4.5 billion. It sees earnings per share (EPS) between $4.65 and $4.95.
On Monday, V2X announced that it has signed a deal to buy a company that provides data engineering, intelligence support, and cybersecurity services for the Intelligence Community. V2X stock has gained over 24% year-to-date and over 23% in the last 12 months.
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