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Investing.com - Jefferies raised its price target on VSE Corporation (NASDAQ:VSEC) stock to $157.00 from $150.00 on Thursday, while maintaining a Buy rating on the aviation services provider. The stock, currently trading at $130.22 with a market cap of $2.69 billion, has shown impressive momentum with a 43.1% gain year-to-date. According to InvestingPro analysis, VSE is currently trading above its Fair Value.
The research firm lowered its second-quarter earnings per share estimate to $0.74 from $0.83, citing more conservative organic growth projections of 7%, down from the previous 11% forecast.
Jefferies attributed the reduced near-term outlook to impacts from the Pratt & Whitney strike affecting material flows at VSE’s TCI division, along with potential hesitation in airline maintenance spending due to macroeconomic uncertainty early in the quarter.
Despite the second-quarter adjustment, Jefferies maintained its 2025 earnings per share estimate of $3.40, based on projected organic growth of 10%.
The firm expects VSE to deliver 12% growth in 2026, supporting a 20% earnings per share compound annual growth rate through 2027, with the company scheduled to report its second-quarter results in late July.
In other recent news, VSE Corporation reported impressive first-quarter 2025 financial results, with revenue surging by 58% to $256 million, driven by strategic initiatives and acquisitions. The company exceeded earnings per share (EPS) expectations, achieving $0.78 compared to the forecasted $0.70. Despite a revenue shortfall against projections, VSE maintained its full-year guidance for 2025 and even slightly increased its expected full-year EBITDA margins by 50 basis points. The acquisition of Turbine Weld and the divestiture of its Fleet segment have positioned VSE as a focused aviation aftermarket services provider. Analyst firms have responded positively to these developments; RBC Capital Markets increased VSE’s stock price target to $150, maintaining an Outperform rating, while Truist Securities raised their target to $140, sustaining a Buy rating. Both firms highlighted VSE’s strong execution and strategic direction in the aerospace and defense sector. The company’s recent refinancing efforts have also bolstered its financial stability, with a proforma net leverage of 2.2 times and $158 million in cash and credit facilities available.
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