Karman initiated with a Buy at Citi

Citi analyst Jason Gursky initiated coverage of Karman (KRMN) with a Buy rating and $42 price target The company is “uniquely positioned” between defense primes and traditional suppliers in the defense ecosystem, the analyst tells investors in a research note. The firm says Karman is focused on three of the fastest growing areas of U.S. defense spending, including nuclear deterrence, tactical missiles, and space. It expects Karman to generate 20% revenue growth and 300 points of margin expansion through 2027, driven by volume ramps and higher shipset on current programs.