An analyst from B. Riley, Jeff Van Sinderen, has increased the price target for VSE Corp (VSEC, Financial) to $150, up from the previous target of $145. The firm continues to maintain a Buy rating on the company’s shares.
VSE Corp's financial results for the first quarter revealed that both revenue and adjusted EBITDA exceeded expectations. The aviation segment, in particular, is anticipated to surpass the general market growth, according to the analyst's note to investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for VSE Corp (VSEC, Financial) is $141.10 with a high estimate of $150.00 and a low estimate of $135.00. The average target implies an upside of 9.94% from the current price of $128.35. More detailed estimate data can be found on the VSE Corp (VSEC) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, VSE Corp's (VSEC, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for VSE Corp (VSEC, Financial) in one year is $60.05, suggesting a downside of 53.21% from the current price of $128.345. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the VSE Corp (VSEC) Summary page.
VSEC Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VSE Corp (VSEC, Financial) delivered record revenue and profitability in Q1 2025, highlighting the strength of its business and markets.
- The company completed the sale of its fleet segment, allowing it to focus on higher growth and margin opportunities in the aviation aftermarket.
- VSE Corp (VSEC) acquired Turbin Weld Industries, enhancing its position in the aviation services market and expanding its capabilities.
- A new 5-year authorized service center agreement with Eaton was signed, marking a significant enhancement to VSE Corp (VSEC)'s aftermarket repair capabilities.
- The company secured a new $700 million credit facility, providing increased financial flexibility and a lower cost of capital.
Negative Points
- The divestiture of the fleet segment may lead to transitional challenges as the company adjusts to a single-segment aviation strategy.
- Despite strong performance, there are broader global market uncertainties, including evolving tariff policies, that could impact future demand.
- The integration of recent acquisitions, while progressing, may take up to 18 months to complete, potentially delaying expected synergies.
- There is a risk of sensitivity to macroeconomic pressures, particularly in the business jets and commercial transport markets.
- The company faces potential challenges in maintaining its strong margins throughout the year, as Q1 typically shows the strongest margin performance.
