RESTON, Va. - V2X, Inc. (NYSE:VVX), a provider of integrated solutions for national security and defense, has secured a substantial contract valued at $170 million to support the Drug Enforcement Administration’s (DEA) fleet of aircraft. This contract highlights the company’s ongoing role in bolstering the DEA’s efforts to fight drug trafficking and maintain national security. The contract adds to V2X’s robust revenue base, which reached $4.2 billion in the last twelve months, with a healthy 7.79% growth rate. According to InvestingPro analysis, the company shows promising growth potential, with analysts projecting increased profitability this year.
The contract award extends V2X’s long-standing relationship with the DEA, which dates back to 1997. V2X’s President and CEO, Jeremy C. Wensinger, emphasized the company’s deep understanding of the DEA’s objectives and the trust that the agency has in V2X to deliver effective solutions for its special mission aircraft and pilot development programs. Trading at $46.98, between its 52-week range of $37.04 to $69.75, V2X currently appears undervalued according to InvestingPro Fair Value metrics, with analysts setting price targets as high as $80.
Under the five-year agreement, V2X will continue to ensure the operational readiness of the DEA’s fleet, which includes over 100 aircraft. The company’s commitment to the mission involves leveraging its extensive experience and innovative technologies to support the DEA’s critical operations.
V2X operates on a global scale with approximately 16,000 professionals, and it has a footprint in various markets, including national security, defense, civilian, and international sectors. The company is known for integrating physical and digital environments to enhance mission readiness, optimize resource management, and improve security. It incorporates advanced technologies such as artificial intelligence and machine learning to address complex challenges across multiple operational domains.
The news of this contract award is based on a press release statement from V2X, Inc. and serves as a testament to the company’s capabilities and trusted partnership with federal agencies in safeguarding the nation. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and a detailed Pro Research Report, providing valuable intelligence for informed investment decisions in V2X and over 1,400 other US stocks.
In other recent news, V2X, Inc. reported an 8% increase in third-quarter revenue, reaching $1.08 billion, alongside a 28% rise in adjusted EBITDA to $82.7 million. The company’s adjusted diluted EPS also saw a significant 77% jump to $1.29. However, RBC Capital Markets revised its rating for V2X from Outperform to Sector Perform, due to anticipated challenges in the government services sector under the upcoming administration. Goldman Sachs initiated coverage on V2X with a Sell rating, expressing concerns about potential macroeconomic risks impacting the company’s revenue. Conversely, BTIG initiated coverage with a Buy rating, highlighting the company’s potential to capitalize on increased spending on modernizing legacy military platforms. V2X also announced a secondary public offering of 2,500,000 shares of common stock by an existing stockholder. Despite a 22% decrease in European revenues, the company secured a $225 million warfighter training readiness contract and raised its 2024 revenue guidance. These are recent developments.
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