Cantor Fitzgerald reiterates Overweight rating on Redwire stock

Investing.com - Cantor Fitzgerald maintained its Overweight rating on Redwire (NYSE:RDW) with a price target of $28.00. The stock, currently trading at $17.73, has shown remarkable momentum with a 119% return over the past year and a 17% gain just last week. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock.

The research firm’s analysis is based on a valuation approach that weighs EV/EBITDA and Price/Sales metrics equally against its 2027 estimates.

Cantor Fitzgerald noted that retail investor support and an anticipated positive catalyst cycle could help Redwire maintain its premium valuation compared to other satellite manufacturing companies.

The firm indicated that satellite manufacturers typically trade at approximately 20 times EBITDA and 3 times sales, while suggesting Redwire could potentially earn premium multiples similar to Defense Technology and AI companies, which trade at roughly 25-35 times EBITDA and 3-7 times sales.

Despite the positive rating, Cantor Fitzgerald expressed some near-term caution, noting that "technology scaling takes time" and maintaining a "less-constructive" view for the immediate future.

In other recent news, Redwire Corporation has completed the integration of a Hammerhead spacecraft platform for an upcoming European Space Agency (ESA) mission. This project, which supports the In-Orbit Demonstration and Verification mission, will demonstrate several innovative technologies funded by the European Union. Meanwhile, Redwire has partnered with Japan’s SpaceData Inc. to expand digital space solutions, focusing on integrating SpaceData into Redwire’s digital ecosystem for International Space Station missions and other space projects. The partnership will leverage SpaceData’s artificial intelligence and digital twin technologies.

In analyst updates, Canaccord Genuity reiterated its Buy rating on Redwire stock, maintaining a $20 price target, while Cantor Fitzgerald reiterated an Overweight rating with a $28 price target. Canaccord highlighted Redwire’s potential to grow its market share across U.S. Federal agencies and NATO allies through its drone technology, while Cantor Fitzgerald noted the company’s expanding space capabilities and improved investor sentiment. Additionally, Canaccord initiated coverage on Redwire, emphasizing its growth potential as a diversified space and defense technology supplier. These developments indicate an active period for Redwire, with strategic partnerships and positive analyst outlooks contributing to its evolving business landscape.

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