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V2X Hold Rating: Strong Revenue Growth Amid Profitability Challenges

V2X Hold Rating: Strong Revenue Growth Amid Profitability Challenges

Bank of America Securities analyst Mariana Perez Mora has maintained their neutral stance on VVX stock, giving a Hold rating on February 10.

Mariana Perez Mora’s rating is based on V2X’s recent financial performance and future outlook. The company reported a strong fourth quarter in 2024, with revenues surpassing expectations, particularly in the US and EU markets. However, despite the revenue growth, the profitability was slightly below projections, as indicated by the adjusted EBITDA margin falling short of estimates.
Looking ahead, V2X’s 2025 outlook aligns with analyst expectations for revenue and adjusted EPS, but the anticipated EBITDA is somewhat lower than projected. This suggests potential challenges in maintaining profitability margins. Additionally, while the company’s stock price is currently below the price objective, the mixed signals in financial performance and future projections justify a Hold rating, reflecting a cautious stance until clearer growth or profitability trends emerge.

In another report released on February 10, RBC Capital also maintained a Hold rating on the stock with a $58.00 price target.

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