UPDATE: Stifel Upgrades V2X, Inc. (VVX) to Buy
Stifel analyst Bert W. Subin upgraded V2X, Inc. (NYSE: VVX) from Hold to Buy with a price target of $45.00 (from $42.00).
The analyst comments "We are upgrading shares of V2X from Hold to Buy following 2Q earnings. We rolled out with a Hold rating back in March when shares were trading at $36.73 given our belief that the merger between Vectrus and Vertex would create an overhang on the stock as debt rose from just over 1x (VEC) to over 4x (VVX). We, however, after an updated analysis, now see interest expense as manageable in the context of the company's FCF generation. V2X reported 2Q adjusted EPS of $1.41 vs. our estimate of $1.11 and consensus of $1.05 on better revenue. EBITDA margins were also well ahead of expectations at 5.0% due partly to some contract close-outs and favorable additions to scope. Most notably, management introduced initial guidance for the combined company ($1.9-1.94B, $140-150m EBITDA, $1.94-2.19 EPS - all 2H22) that was better-than-expected and provided positive commentary on optempo that should drive additional upside."
Shares of V2X, Inc. closed at $29.81 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
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