William Blair analyst Louie DiPalma has maintained their bullish stance on VSEC stock, giving a Buy rating on May 2.
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Louie DiPalma has given his Buy rating due to a combination of factors including VSE’s strong first-quarter performance and the strategic benefits of recent acquisitions. The company’s adjusted EBITDA margin of 16.9% remains robust, even with the near-term margin impact from integrating Turbine Controls and Kellstrom. These acquisitions enhance VSE’s commercial exposure, positioning it to capitalize on Boeing’s production challenges.
Furthermore, VSE’s ongoing integration efforts are expected to improve margins, particularly as Kellstrom begins utilizing Turbine Controls for medium repairs. The company’s shares have risen significantly this year, reflecting strong execution and investor confidence in its OEM-focused business model and aerospace aftermarket growth. With a history of successful M&A activity and a management team experienced in acquisitions, VSE is poised for further expansion, contributing to the Buy rating.
In another report released on May 2, RBC Capital also maintained a Buy rating on the stock with a $140.00 price target.