Redwire shares are set for takeoff, according to Roth MKM. Managing director Suji Desilva initiated research coverage of the space stock with a buy rating. His $10 price target implies the stock can surge 222% over the next year. “We believe RDW’s program contract-based revenue model provides strong visibility and predictability for investors,” Desilva said. “We estimate that RDW today has hundreds of millions of dollars in contracted backlog and several billions worth of pipeline revenue opportunity.” Redwire, which went public via a SPAC in 2021 , briefly rose as much as 2.3% early Wednesday, bringing the year-to-date advance to some 59%. RDW YTD mountain Redwire’s strong year Desilva said Redwire has built a “differentiated and highly integrated space product offering” through acquisitions, ending with a portfolio including products such as power components and communication antennas. The Jacksonville, Florida-based company is helping to enable integrated space missions, further space exploration and offer support for multinational missions. Redwire’s array of products and services specifically targets a more reliable and economical infrastructure needed to facilitate space exploration, Desilva said, noting that it differentiates itself by focusing on in-space construction and space-based operations versus deployment and basic construction. Using that platform, Redwire appears to have gained traction among its main customer base of civilian and national security agencies and private business. After multiple quarters of organic growth and EBITDA profitability, Desilva said Redwire should now see steady growth. Short-term working capital needs can be met with cash on hand and additional available capital, he added. Roth MKM’s $10 share price target reflects an enterprise-value-to-sales multiple of 2.5 times, lower than peers’ 3.0 times owing to Redwire’s early-stage status. — CNBC’s Michael Bloom contributed to this report
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