V2X stock holds $80 target, Market Outperform at Citizens JMP

On Tuesday, Citizens JMP maintained its Market Outperform rating and $80.00 price target for V2X, Inc. (NYSE:VVX), a defense contractor with a market capitalization of $1.45 billion. The affirmation came after V2X reported its first quarter results for fiscal year 2025, which aligned closely with analyst projections. The defense contractor’s revenue reached $1.02 billion, marking a 1% year-over-year increase, though slightly below the consensus estimate of $1.03 billion. V2X’s adjusted EBITDA was reported at $67.0 million, just under the $68.9 million consensus, while its non-GAAP earnings per share (EPS) exceeded expectations at $0.98, compared to the anticipated $0.94. According to InvestingPro analysis, V2X is currently trading below its Fair Value, with analysts expecting net income growth this year.

The company’s performance comes amid a series of defense-related executive orders and new priorities, with an emphasis on efficiency and operational readiness. These factors, coupled with ongoing global trade tensions and a multifaceted threat landscape, pose challenges that V2X appears equipped to handle. The firm’s strategic focus remains on expanding its top-line in FY25, building on its impressive 9.06% revenue growth over the last twelve months. InvestingPro data reveals that while V2X suffers from weak gross profit margins of 7.93%, it maintains a strong financial health score, suggesting resilience in its operational strategy.

In the broader market context, V2X’s stock has seen a modest year-to-date (YTD) increase of approximately 0.2%. This follows a more significant aftermarket rise of around 2.0% subsequent to the earnings announcement. Comparatively, the S&P Aerospace & Defense ETF (ticker: XAR) has climbed roughly 6.9% YTD, while the Russell 3000 has experienced a decline of about 4.1% YTD.

V2X, Inc. is navigating a complex industry landscape, and its latest financial results have confirmed its steady progress and the confidence of analysts at Citizens JMP. With a continued focus on fiscal year 2025, the company is poised to pursue further growth and operational success in a competitive defense market.

In other recent news, V2X Inc. has secured several significant contracts and made strategic business moves. The company announced a five-year task order with a ceiling value of $140 million to support U.S. Space Force operations on Ascension Island. This contract includes a one-year base period with four additional one-year options, enhancing mission outcomes and operational efficiency. Additionally, V2X has been awarded a $103 million contract by the U.S. Navy to provide Contractor Logistics Support for the Navy’s C-26 aircraft fleet, underscoring its expertise in military aviation support.

The U.S. Army has extended V2X’s task orders under the Logistics Civil Augmentation Program V, ensuring continued support for military operations globally through June 2030. In corporate developments, V2X appointed Melon Yeshoalul as Senior Vice President, Chief Human Resources Officer, to oversee global HR strategies and operations. On the financial front, Morgan Stanley (NYSE:MS) initiated coverage on V2X with an Underweight rating and a price target of $51.00, noting the company’s stable core business but highlighting potential risks due to changes in military operational tempo and government contracting practices. These recent developments reflect V2X’s active role in defense and national security sectors, while also navigating financial and strategic challenges.

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