Raymond James initiates Karman Holdings stock with Strong Buy rating

Published 05/09/2025, 11:54
Raymond James initiates Karman Holdings stock with Strong Buy rating

Investing.com - Raymond James initiated coverage on Karman Holdings Inc (NYSE:KRMN) with a Strong Buy rating and a $100.00 price target. The stock, currently trading at $53.38, has demonstrated remarkable momentum with a 71% gain over the past six months. According to InvestingPro data, the broader analyst consensus strongly favors buying the stock.

The firm identified Karman as a vertically integrated merchant supplier of highly engineered propulsion, interstage, and payload protection systems to the Defense and Space industry.

Raymond James highlighted that Karman is the most profitable company in the defense ecosystem with EBITDA margins approximately twice that of its most profitable peer, exceeding 30%.

The research firm expects Karman to achieve the fastest organic compound annual growth rate (CAGR) through 2027, at approximately 30%.

Raymond James has modeled Street-high estimates for 2026/2027 and anticipates the business will triple by 2030.

In other recent news, Karman Holdings Inc. reported its second-quarter 2025 financial results, showcasing a revenue of $115 million, which marks a significant 35% increase from the previous year. The company’s adjusted EBITDA was reported at $35.3 million, with a margin of 30.7%. These results exceeded Karman’s pre-announcement ranges, contributing to a positive outlook. Meanwhile, Carmen Space and Defense, a subsidiary of Karman, also reported its second-quarter earnings with a revenue of $115.1 million, mirroring the 35% year-over-year increase. However, Carmen Space missed its earnings per share (EPS) forecasts, reporting an EPS of $0.05 against the expected $0.11, a miss of 54.55%.

In light of these developments, RBC Capital raised its price target for Karman Holdings to $57 from $55, maintaining an Outperform rating. This adjustment reflects confidence in the company’s performance despite Carmen Space’s earnings miss. The market’s reaction was positive, as indicated by a rise in Karman’s stock during premarket trading. These recent developments highlight the mixed financial performance within the Karman Holdings group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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