RBC Capital analyst Ken Herbert initiated coverage of V2X with an Outperform rating and $55 price target. The "new" VVX that resulted from the July 2022 Vectrus-Vertex merger is "not well understood by investors," though contract timing and budget risks keep the firm conservative with its "below consensus" 2023 estimates. However, RBC believes that the stock will positively re-rate as investors "warm up to the expanded capability set, margin upside opportunity, and deleveraging."
Published first on TheFly
