Stifel Downgrades V2X, Inc. (VVX) to Hold, as 'expectations are reasonably high'

Stifel analyst Bert Subin downgraded V2X, Inc. (NYSE: VVX) from Buy to Hold with a price target of $52.00 (from $59.00).

The analyst commented: "We are downgrading shares of V2X from Buy to Hold. We upgraded V2X to Buy about 17 months ago when we believed the company was being overly punished for its post-merger balance sheet. Since then, the stock has risen roughly 48% vs. the GS index at +21%, and, while the medium-term demand picture remains favorable, we think expectations are reasonably high for V2X heading into 2024. We think beating EBITDA expectations will need to be sales-driven as margins should face some near-term pressure as new MRO contracts ramp up and cost-plus contingency work continues to grow. And, we believe beating EPS expectations will be a function of interest expense, which should decline but still takes quarters to meaningfully do so. With budgets less favorable in 2024 and optempo stabilizing, we think there is some upside for V2X but that is likely to show up more in 2H24/2025. TP to $52."

For an analyst ratings summary and ratings history on V2X, Inc. click here. For more ratings news on V2X, Inc. click here.

Shares of V2X, Inc. closed at $44.57 yesterday.

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