VSE Corp. initiated with a Buy at Stifel

Stifel initiated coverage of VSE Corp. with a Buy rating and $101 price target. The firm sees the company as an aviation aftermarket growth story that’s consolidating share in distribution and repairs at a time when the macro environment is very supportive, the analyst tells investors in a research note. VSE is in the middle innings of a transformation from a logistics, supply chain and distribution company with a multi-sector focus to an aviation aftermarket pure play while also offering “defensible barriers” in both the commercial and B&GA end markets, the analyst tells investors in a research note. Stifel adds that it sees multiple upside stemming from the anticipated separation of the Fleet segment and forecasts continued double-digit growth in Aviation for the next several quarters amid industry growth.