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’s strategic expansion and expected financial benefits. He views the acquisitions of Seemann Composites and Materials Sciences as highly attractive, as they move Karman deeper into mission-critical maritime defense programs that tend to be large, long-term, and well funded. The roughly $220 million deal is expected to boost Karman’s growth profile and be additive to key financial metrics such as revenue, backlog, EBITDA, earnings per share, and cash generation starting in 2026, which supports a favorable risk/reward outlook.
In addition, DiPalma highlights that the acquired businesses significantly enhance Karman’s intellectual property and technical capabilities in advanced composite materials, propulsion systems, and launch systems that are crucial for submarines, unmanned maritime vehicles, and other naval platforms. These capabilities build on Karman’s previous acquisitions and strengthen its positioning across the defense supply chain, particularly in specialized areas such as resin systems, automated fiber placement, and fatigue testing. He believes this portfolio expansion into high-priority naval modernization and undersea dominance initiatives, combined with differentiated manufacturing know-how, underpins sustainable competitive advantages and justifies a Buy rating on the shares.
DiPalma covers the Technology sector, focusing on stocks such as Parsons, Caci International, and Gilat. According to TipRanks, DiPalma has an average return of 5.6% and a 62.04% success rate on recommended stocks.