Redwire (RDW – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Scott Buck from H.C. Wainwright reiterated a Buy rating on the stock and has a $26.00 price target.
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Scott Buck has given his Buy rating due to a combination of factors, primarily centered around Redwire’s strategic acquisition of Edge Autonomy. This acquisition enhances Redwire’s capabilities in unmanned airborne systems and positions the company favorably in the growing sectors of space and national defense, where demand is expected to rise significantly. The integration of Edge Autonomy is anticipated to be swift, allowing Redwire to capitalize on immediate opportunities and strengthen its presence in Europe, where defense budgets are projected to increase.
Additionally, the acquisition is expected to be immediately beneficial to Redwire’s revenue, adjusted EBITDA, and free cash flow. The recent $260 million capital raise is also seen as a positive move, simplifying the balance sheet and providing growth capital. Buck maintains a price target of $26 for RDW shares, reflecting a 65% upside potential from current levels, based on a valuation of 6.0x EV/revenue for 2026. This valuation is justified by Redwire’s revenue growth trajectory, expected positive cash flow by 2025, and the potential from its space manufacturing unit.