William Blair analyst Louie DiPalma has maintained their bullish stance on KRMN stock, giving a Buy rating today.
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Louie DiPalma has given his Buy rating due to a combination of factors tied to Karman Holdings’ strengthened growth outlook and strategic positioning. He highlights that management raised its 2026 organic revenue guidance following the announced acquisitions of Seemann Composites and Materials Sciences, which he views as confirmation of robust, sustained demand in the defense sector. The purchase price implies a reasonable EBITDA multiple, and Karman’s track record since its IPO suggests that it can successfully integrate acquisitions and execute on its growth strategy.
In addition, DiPalma underscores that these deals significantly deepen Karman’s presence in high-priority naval programs with long funding visibility, which should support durable revenue and earnings expansion. The acquired businesses bring differentiated intellectual property and advanced materials capabilities in sonar, propulsion, launch systems, and high-end manufacturing processes, all of which can be leveraged across Karman’s core markets. He also notes that the transactions are expected to be accretive to revenue, backlog, EBITDA, EPS, and cash flow by 2026, reinforcing the investment case. Taken together, these elements lead him to view the current valuation as attractive relative to Karman’s enhanced growth and profitability prospects, supporting his Buy rating.
DiPalma covers the Technology sector, focusing on stocks such as Parsons, Caci International, and ViaSat. According to TipRanks, DiPalma has an average return of 10.8% and a 65.60% success rate on recommended stocks.
In another report released today, Citi also maintained a Buy rating on the stock with a $125.00 price target.