VSE’s Strategic Shift and Market Recovery Justify Buy Rating

William Blair analyst Louie DiPalma has reiterated their bullish stance on VSEC stock, giving a Buy rating on March 12.

Louie DiPalma has given his Buy rating due to a combination of factors that highlight VSE’s strategic positioning and potential for growth. The company’s decision to divest its fleet division has repositioned it as a focused aviation aftermarket parts and services provider, which is expected to enhance its core operations. This strategic move is anticipated to streamline VSE’s business model and potentially improve its profitability in the long term.
Moreover, the positive trends in travel and business jet volumes indicate a recovering market, which could benefit VSE’s aviation segment. Despite the adjustments in EBITDA estimates for 2025 and 2026, the company’s strategic acquisitions and effective integration efforts are likely to drive margin expansion in the coming years. These factors collectively support a positive outlook for VSE, justifying the Buy rating.

In another report released on March 12, RBC Capital also maintained a Buy rating on the stock with a $140.00 price target.