German construction sector still in recession, civil engineering only bright spot
Investing.com - Stifel initiated coverage on VSE Corporation (NASDAQ:VSEC) with a Buy rating and a $199.00 price target on Monday. The stock, currently trading at $165.48, has demonstrated remarkable momentum with an 87.8% gain over the past year, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The research firm highlighted that VSE has completed its transformation to become a pure-play aviation aftermarket parts distributor and MRO service provider, building what it calls an "OEM-friendly" integrated platform of parts, distribution, and services.
Stifel expects VSE to sustain low double-digit revenue growth while expanding margins through low-risk distribution product line extensions and new OEM partnerships, with international expansion into Europe providing additional growth opportunities.
The firm noted that VSE’s differentiated integrated portfolio leads to unique acquisition targets, with the company developing "M&A as a core competency" and demonstrating success at acquiring aerospace assets at reasonable valuations that integrate fully into its business.
Stifel projects mid-teens cash and earnings growth to support an above-market valuation for VSE, adding that market awareness of the company’s investment merits is still in early stages and anticipating that a future investor day will serve as a positive catalyst.
In other recent news, VSE Corporation reported strong financial results for the second quarter of 2025, outperforming analyst expectations. The company achieved an earnings per share (EPS) of $0.97, which was significantly higher than the projected $0.75. Additionally, VSE Corporation’s revenue reached $272.1 million, surpassing the anticipated $263.42 million. In another development, the company’s Board of Directors declared a regular quarterly cash dividend of $0.10 per share. This dividend will be payable on October 29, 2025, to stockholders of record as of October 15, 2025. These recent developments highlight VSE Corporation’s financial strength and commitment to returning value to its shareholders.
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