VSE Corporation (VSEC) PT Raised to $140 at RBC Capital on 'Better-than-Expected 2025 Outlook'

RBC Capital analyst Ken Herbert raised the price target on VSE Corporation (NASDAQ: VSEC) to $140.00 (from $135.00) while maintaining an Outperform rating.

The analyst commented: "2025 outlook better than expected, catalyst path clear; VSE Corp (VSEC) reported 4Q24 adj. EPS of $0.90, compared to our estimate of $0.70 and consensus of $0.72. Total revenue grew 27% (17% organically) and the Aviation segment margins were better than expected at 16.4%. Importantly, the company provided 2025 guidance, calling for Aviation EBITDA margins of 15.5%-16.5%, nicely bracketing consensus, and sufficiently addressing more pessimistic investor fears. The 2025 outlook calls for ~38% Aviation segment revenue growth, and the company's ability to continue to outgrow the industry will be a positive. We are maintaining our Outperform rating and increasing our PT to $140."

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