RDW
Redwire Corporation (NASDAQ: RDW) fell nearly 16% on Monday after Jefferies downgraded the aerospace and...
Article Summary
HOLD- Redwire Corporation (NASDAQ: RDW) fell nearly 16% on Monday after Jefferies downgraded the aerospace and space infrastructure company, citing a valuation disconnect amid a broader sector rally driven by optimism around SpaceX's IPO.
- The firm downgraded Redwire to Hold from Buy and highlighted the stock's stellar rally in May during which it more than doubled in value from increased interest in space sector stocks, but believes Redwire Corporation faces limited near-term upside and needs to demonstrate backlog conversion.
- RDW currently trades nearly 9x its estimated sales for this year, up from more than 3x last year, with Jefferies' new price target of $24, hiked from $13, not implying scope for growth in stock price.
- The stock has nearly tripled in value so far this year and gained more than 47% over the past 12 months outperforming the benchmark S&P Index.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 33.6% | 25% | 85.0 ptsExcellent (33.6%) - Strong growth |
| EPS Growth Next 5Y ? | 52.8% | 25% | 100.0 ptsExceptional (52.8%) - Very high expectations |
| Target Price Upside ? | 24.2% above | 20% | 0.0 ptsAbove Target (24.2% above) - Target: $15.67 vs Current: $20.68 |
| Gross Margin % ? | 9.2% | 15% | 10.0 ptsRazor-Thin (9.2%) - Weak pricing power |
| Drawdown from 52-Wk High ? | -22.4% | 15% | 40.0 ptsMild Pullback (-22.4%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About RDW
- Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally.
- It operates in two segments Space and Defense Tech.
- The company offers sensors and avionics systems, including star trackers and sun sensors, which are critical for accurate navigation and control of spacecraft; camera systems; infrared, space situational awareness, and position timing and navigation payloads; It also provides software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment.
- In addition, the company offers microgravity payloads, radio frequency systems, antennas, spacecraft platforms and missions, and in-space manufacturing and biotech facilities, as well as field-proven uncrewed airborne system (UAS) technology.
- Further, it provides combat-proven autonomous systems, optical sensors, advanced optics, resilient energy solutions, and radio frequency payloads, as well as provides intelligence, surveillance, and reconnaissance capabilities for customers including the U.S.
- Department of War, U.S. Federal Civilian Agencies and allied governments across multiple domains.
- Redwire Corporation was founded in 2010 and is headquartered in Jacksonville, Florida.