Karman Holdings Inc.: Strong Growth Potential Driven by GMLRS Expansion and Defense Bill Exposure

William Blair analyst Louie DiPalma has maintained their bullish stance on KRMN stock, giving a Buy rating on April 17.

Louie DiPalma has given his Buy rating due to a combination of factors that highlight Karman Holdings Inc.’s strong growth potential. The anticipated increase in the production of the Guided Multiple Launch Rocket System (GMLRS) by the U.S. Army is a significant driver, as Karman is heavily involved in this program. This expansion is expected to nearly double production by 2028, providing a solid foundation for long-term demand.
Additionally, the company’s exposure to the substantial $150 billion defense reconciliation bill further enhances its growth prospects. Despite potential fluctuations in quarterly growth, the overall industry dynamics are favorable, with shares projected to rise to a range of $41 to $48 within the next year. While the premium valuation and reliance on U.S. Department of Defense spending pose risks, the expected growth trajectory and industry benchmarks support a positive outlook for Karman Holdings Inc.

DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Motorola Solutions, and Parsons. According to TipRanks, DiPalma has an average return of -18.7% and a 49.21% success rate on recommended stocks.

In another report released on April 17, RBC Capital also maintained a Buy rating on the stock with a $38.00 price target.