Karman stock price target raised to $57 from $55 at RBC Capital

Investing.com - RBC Capital raised its price target on Karman Holdings Inc (NYSE:KRMN) to $57.00 from $55.00 on Friday, while maintaining an Outperform rating on the aerospace and defense company’s stock. The new target aligns with the stock’s 52-week high of $57.31, though InvestingPro analysis indicates the stock is currently trading at elevated multiples with a P/E ratio over 1,000.

The price target increase follows Karman’s second-quarter 2025 results, which exceeded the company’s pre-announcement ranges. Karman reported revenue of $115 million, representing a 35% year-over-year increase, and adjusted EBITDA of $35.3 million with a 30.7% margin. The company maintains strong financial health with a current ratio of 3.34, indicating robust liquidity.

Organic growth reached approximately 30% during the quarter, while funded backlog grew 13% sequentially to $719 million. The company’s Tactical Missiles and IDS segment posted the fastest growth among all segments at 46% in the second quarter. InvestingPro subscribers can access 15+ additional insights about Karman’s growth prospects and valuation metrics.

RBC Capital noted that Karman has raised its 2025 guidance and expressed increased confidence in its second-half 2025 revenue outlook. The investment firm also highlighted Karman’s confidence in its current production capacity.

Karman Holdings specializes in aerospace and defense technologies, with its strongest performance coming from its tactical missiles division according to the quarterly results.

In other recent news, Carmen Space and Defense released its second-quarter earnings, reporting a revenue of $115.1 million, which represents a 35% increase compared to the previous year. Despite this growth, the company did not meet earnings expectations, posting an earnings per share (EPS) of $0.05, significantly lower than the forecasted $0.11. This result marks a 54.55% miss on EPS projections. The market’s reaction to these earnings was positive, as indicated by the 3.3% rise in the stock of Karman Holdings Inc., Carmen’s parent company, in premarket trading. These developments are part of recent updates concerning the company’s financial performance.

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