Karman initiated with an Outperform at Baird

Baird initiated coverage of Karman (KRMN) with an Outperform rating and $40 price target The company’s “highly differentiated model” of providing customers with a “concept to production” capability offering, ensures early involvement on leading weapon programs well ahead of initial prototyping, the analyst tells investors in a research note. The firm believes Karman has “highly attractive financial metrics,” highlighted by high-teens annual revenue growth, “best-in-class” EBITDA margins north of 30.0%, and robust free cash flow conversion exceeding 80%.