Shares of Redwire (RDW) are up 28% on Jan. 27 after the space company joined a $151 billion contract to support U.S. President Donald Trump’s “Golden Dome” defense initiative.
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Redwire joins hundreds of vendors supporting a U.S. government project aimed at creating new defense, aerospace and cybersecurity systems to protect America from foreign threats. Other companies on the same contract include Palantir Technologies (PLTR), Lockheed Martin (LMT), and Jeff Bezos’ Blue Origin.
Last year, Trump announced plans to build a Golden Dome defense system modeled on Israel’s Iron Dome. At the time, the Trump administration said the system would cost $175 billion and be up and running in 2028. However, some private sector estimates place the project’s cost at $500 billion over two decades of development.
Redwire’s Role
Redwire’s role with the Golden Dome project isn’t yet known. Formed in 2020 and based in Jacksonville, Florida, Redwire primarily ai-orbital-rivalry-continues">makes satellites and drones for use in space and military applications. Specifically, the company makes avionics and cameras for satellites, spacecraft, and drones.
The Trump administration is focused on rebuilding and modernizing the U.S. military and defense manufacturing sector. Earlier in January of this year, Trump called for a $1.5 trillion defense budget in 2027 to support his goal of creating a “dream military.”
Is RDW Stock a Buy?
Redwire’s stock has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on six Buy, two Hold, and one Sell recommendations issued in the last three months. The average RDW price target of $12.50 implies 11.19% downside from current levels.
