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Analyst Raises Price Target on Vse, Maintains Strong Buy Rating

By Don Francis, Editor
November 18, 2023 8:35 AM UTC
Analyst Raises Price Target on Vse, Maintains Strong Buy Rating

Benchmark's Josh Sullivan raised their price target on Vse (NASDAQ: VSEC) by 21.4% from $70 to $85 on 2023/11/17. The analyst maintained their Strong Buy rating on the stock.

Management's new FY 2026 guidance reflects the company's ability "to organically harvest its previous stage for a strong Aero/Fleet aftermarket story," the analyst said after assessing Vse's 2023 Investor Day event, held on 2023/11/14. Further, the company's position as a value-added OEM distributor and repair shop "has emerged as the foundation of a new third growth pillar," Sullivan said.

According to the latest data, 100% of top-rated analysts currently rate VSEC as a Strong Buy or Buy, with no analysts seeing it as a Hold. Additionally, no analysts recommend or strongly recommend selling the stock. This positive sentiment from analysts suggests a strong outlook for Vse.

Since VSEC's last quarterly report on 2023/09/30, the stock price has increased by 22.7%. Year-over-year, the stock is up 27.6%. Vse has outpaced the S&P 500 during this period, which has seen an increase of 14%. These figures indicate that VSEC has been performing well and delivering positive returns to its investors.

Benchmark analyst Josh Sullivan is highly regarded in the industry, ranking in the top 11% out of 4,399 Wall Street analysts according to WallStreetZen. Sullivan has an impressive average return of 6.2% and a win rate of 58.3%. Their expertise lies in the Technology and Basic Materials sectors, among others. With such a strong track record, Sullivan's analysis and recommendations carry weight in the financial community.

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company is divided into three segments: Aviation, Fleet, and Federal and Defense. The Aviation segment provides international parts supply and distribution, supply chain solutions, and component and engine accessory maintenance, repair, and overhaul (MRO) services. This segment serves a range of clients, including commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators.

The Fleet segment focuses on parts supply, inventory management, e-commerce fulfillment, logistics, and other services to support aftermarket commercial and federal customers with their supply chain management. Additionally, the Fleet segment offers vehicle parts sales and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets.

The Federal and Defense segment specializes in aftermarket refurbishment and sustainment services for military vehicles, ships, and aircraft for the United States Department of Defense (DoD). They also provide foreign military sales services, engineering, logistics, maintenance, configuration management, prototyping, technology, and field support services to the DoD and other customers. Alongside these services, this segment offers energy consulting services and IT solutions to various DoD, federal civilian agencies, and commercial clients.

VSE Corporation, headquartered in Alexandria, Virginia, has a long history dating back to its incorporation in 1959. The company's diversified portfolio of services, coupled with its expertise in the aviation, fleet, and federal and defense sectors, positions it well for future growth and success.

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