H.C. Wainwright analyst Scott Buck has reiterated their bullish stance on RDW stock, giving a Buy rating yesterday.
Scott Buck has given his Buy rating due to a combination of factors that indicate a positive future outlook for Redwire Corporation. Despite the company’s underwhelming fourth-quarter results for 2024, with revenue falling short of expectations, Buck emphasizes the promising guidance for 2025. The company projects significant revenue growth, bolstered by the acquisition of Edge Autonomy, and anticipates achieving positive adjusted EBITDA and free cash flow, marking a pivotal turning point for the business.
Furthermore, Buck highlights the potential for additional revenue synergies from the merger, which are not yet fully reflected in the guidance, suggesting further upside potential. The strengthening of Redwire’s balance sheet through recent capital raises and the expected increase in defense spending by European countries are also seen as key catalysts for future growth. Buck believes that as Redwire meets its 2025 targets, the stock price is likely to move towards the $26 price target, reinforcing the Buy recommendation.
Buck covers the Technology sector, focusing on stocks such as Lightpath Technologies, SoundHound AI, Inc Class A, and Mitek Systems. According to TipRanks, Buck has an average return of -18.5% and a 23.48% success rate on recommended stocks.
In another report released yesterday, Alliance Global Partners also reiterated a Buy rating on the stock with a $20.00 price target.