William Blair analyst Louie DiPalma has maintained their bullish stance on KRMN stock, giving a Buy rating on April 2.
Louie DiPalma has given his Buy rating due to a combination of factors that highlight Karman Holdings Inc.’s strong financial performance and promising future prospects. The company reported robust full-year 2024 financials, aligning with prior forecasts, and projected an 18% organic growth for 2025, maintaining its momentum from the previous year. This growth is complemented by an impressive 31% EBITDA margin, which is among the highest in the aerospace and defense sector.
Additionally, Karman Holdings is strategically positioned to benefit from significant government initiatives such as the Department of Defense’s Golden Dome project and increased launch activities from major aerospace players. The company’s financial profile, characterized by high-teens organic growth and substantial EBITDA margins, underscores its leadership in the U.S. missile, drone, and space industries. Despite potential market volatility and external factors like China’s export curbs, Karman’s primarily domestic supply chain and substantial funded backlog provide strong visibility and confidence in its future performance.
In another report released on April 2, RBC Capital also maintained a Buy rating on the stock with a $38.00 price target.