VSE Corp. price target raised to $115 from $97 at Truist

Truist raised the firm’s price target on VSE Corp. to $115 from $97 and keeps a Buy rating on the shares after the company announced the acquisition of Kellstrom Aerospace, a secondary equity offering to support funding the acquisition, and provided high-level preliminary Q3 results. After evaluating the potential performance of the acquisition, the firm is updated its price target which it believes reflects the potential VSE holds as the company continues to evolve itself into an aviation pure-play. At first glance, Truist likes the look of Kellstrom, estimating Kellstrom will be mildly dilutive to Aviation margins but accretive to overall corporate margins as well as accretive to EPS, the analyst tells investors in a research note.