William Blair analyst Louie DiPalma has maintained their bullish stance on VSEC stock, giving a Buy rating on July 28.
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Louie DiPalma has given his Buy rating due to a combination of factors that highlight VSE’s strong financial performance and positive outlook. The company reported second-quarter financial results that surpassed market expectations, with a notable 41% increase in revenue, reaching $272 million, which exceeded the consensus estimate of $261 million. This growth was driven by significant increases in repair and distribution work, showcasing the company’s robust operational capabilities.
Furthermore, VSE’s aviation segment demonstrated impressive performance, with adjusted EBITDA growing by 48% to $43.5 million, surpassing the consensus of $41.8 million. The aviation margins also improved, reflecting enhanced efficiency and profitability. Additionally, the company raised its full-year adjusted EBITDA margin guidance and reiterated its 2025 revenue projections, indicating confidence in sustained growth. These factors collectively support the Buy rating, as they suggest a promising trajectory for VSE’s financial health and market position.
In another report released on July 28, RBC Capital also maintained a Buy rating on the stock with a $150.00 price target.