Truist Securities initiates Karman Holdings stock with Buy rating

Published 10/10/2025, 11:54
Truist Securities initiates Karman Holdings stock with Buy rating

Investing.com - Truist Securities initiated coverage on Karman Holdings Inc (NYSE:KRMN) with a Buy rating and a price target of $89.00 on Friday. The company has demonstrated remarkable momentum, with a nearly 148% return over the past year and current trading at $74.51.

The price target represents a potential 19% upside from Karman Holdings’ current share price, according to Truist’s research note. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with analysts’ targets ranging from $60 to $100.

Truist views Karman as "one of the optimal plays in the defense sector" positioned to capitalize on opportunities in the growing global missile and launch markets.

The firm cited Karman’s broad program exposure and its position as an "agnostic merchant supplier to nearly all major prime contractors" as factors that should enable above-average peer growth while maintaining strong margins.

While acknowledging that Karman shares "are not cheap," Truist justified the premium valuation based on the company’s "broad-based missile exposure, rapid revenue growth potential and superior returns."

In other recent news, Karman Holdings Inc. reported a significant increase in revenue for the second quarter of 2025, reaching $115 million, marking a 35% year-over-year growth. However, Carmen Space and Defense, a subsidiary of Karman, missed earnings per share (EPS) forecasts, reporting $0.05 against the expected $0.11. Despite the EPS miss, RBC Capital raised its price target for Karman Holdings to $57 from $55, maintaining an Outperform rating. Raymond James initiated coverage on Karman Holdings with a Strong Buy rating and a $100 price target, highlighting its role in the defense and space industry.

Additionally, Palladyne AI Corp. announced that retired U.S. Army Lieutenant General Stephen M. Twitty has joined its Board of Directors. Twitty brings extensive military leadership experience, having served 40 years in the Army, including as Deputy Commander of the United States European Command. These developments reflect ongoing changes and strategic decisions within both Karman Holdings and Palladyne AI Corp.

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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