Redwire, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Scott Buck from H.C. Wainwright maintained a Buy rating on the stock and has a $22.00 price target.
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Scott Buck has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for Redwire Corporation. Despite a recent decline in share price following disappointing third-quarter results, Buck sees the current revenue challenges as temporary and not indicative of any fundamental issues with the company’s core business. The company’s backlog is robust, standing at $355.6 million, and it is well-positioned to benefit from potential new contracts with Golden Dome and the U.S. Army’s Long Range Reconnaissance program.
Moreover, Redwire’s adjusted gross margin has shown significant improvement, increasing by nearly 1,000 basis points from the previous year, which Buck believes can be sustained or even improved as the revenue environment stabilizes. Additionally, favorable trends in the space and defense sectors, driven by increased investment from the U.S. government and NATO countries, provide a strong growth backdrop. Despite the short-term impact of the government shutdown, Buck anticipates a much-improved financial outlook for 2026, making the current share price an attractive entry point for investors. As such, he maintains a Buy rating with a $22 price target.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $15.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is neutral on the stock.