Redwire initiated with a Buy at Roth MKM

Roth MKM analyst Suji Desilva initiated coverage of Redwire with a Buy rating and $10 price target. The company’s program contract-based revenue model provides strong visibility and predictability for investors, the firm tells investors in a research note, estimating that Redwire today has hundreds of millions of dollars in contracted backlog and several billions worth of pipeline revenue opportunity. Roth MKM further cites Redwire’s organic growth over the last few quarters and two straight quarters of EBITDA profitability, noting that the company is poised to drive steady growth and has manageable near-term working capital needs.