In a report released yesterday, Mariana Perez Mora from Bank of America Securities reiterated a Hold rating on V2X (VVX – Research Report), with a price target of $55.00.
Mariana Perez Mora’s rating is based on a combination of factors that influence V2X’s current market position. The company is well-positioned to benefit from increased demand for military training programs and modernization efforts, especially as the Department of Defense focuses on enhanced readiness. However, the shifting priorities and funding reallocations by the DoD could pressure V2X’s logistics-related operations and maintenance work, which is a significant part of their business.
Despite V2X’s recent success in securing the Warfighter-Training Readiness Solutions contract, which could lead to accelerated task orders, there are concerns about margin pressures. The sunset of key programs like the KC-10 and T-1A could impact profitability, and the necessity for digitalization may impose additional costs on V2X. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these challenges while seeking to expand its market presence.
According to TipRanks, Perez Mora is a 5-star analyst with an average return of 42.9% and a 59.76% success rate. Perez Mora covers the Technology sector, focusing on stocks such as Caci International, OSI Systems, and Leidos Holdings.