Cantor Fitzgerald Reiterates Overweight Rating on Redwire (RDW)

Cantor Fitzgerald analyst Colin Canfield reiterated an Overweight rating and $28.00 price target on Redwire (NYSE: RDW).

The analyst said, “RDW (Overweight) announced its acquisition of Edge Autonomy for $925m ($150m cash, $775m equity). We estimate the transaction to be accretive on EBITDA/FCFin 2025 and EPS in 2026E as RDW executes what we view as a constructive strategic shift. While we historically thought of RDW as a Space component roll up with Satellite Prime aspirations, we think RDW’s acquisition represents a constructive move by the Space industry towards scalable “system-of-systems” architectures for Defense customers. Scaled constellations like Starlink represent significant competition and Defense Primes have leading terrestrial technology, but we have seen limited Sat- Drone solutions thus far. The effect, in our view, is that RDW likely gets credit not just for the financial benefits of securing a healthy base of cash flow growth, but also the strategic credit as a “system of systems” supplier for government customers. There are still some risks, with customers potentially opting to acquire leading Space and Defense technologies separately and integrate themselves, although we think the scarcity of international Space expertise offsets. We also think this positions RDW for better production opportunities across each system (satellites, uncrewed, components) as part of their wholesale system of system sale (end-end ISR “picks and shovels”).”

For an analyst ratings summary and ratings history on Redwire click here. For more ratings news on Redwire click here.

Shares of Redwire closed at $22.05 yesterday.

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