V2X's Raised Outlook Appears Conservative After Strong Q2, RBC Says
V2X's (VVX) raised full-year outlook appears conservative following strong Q2 results, with management citing about 98% revenue visibility for 2026, suggesting upside to results, RBC Capital Markets said.The investment firm said in a Monday note that the second-half revenue growth should be supported by the T-6 program ramping to about $100 million, continued strength in national security work and contributions from the BALAD and WTRS programs.However, it expects comparisons to become more challenging in the second half as revenue from the Kuwait LOGCAP contract declines sharply.V2X's continued debt reduction remains a positive, with net leverage falling to 2.4x in the second quarter, RBC said, adding that investors would increasingly like to see the company pursue bolt-on acquisitions or increase share repurchases as balance sheet flexibility improves.RBC raised its price target to $88 from $75 and maintained its sector perform rating.Shares of V2X were down 7.7% in Tuesday afternoon trading.Price: $79.74, Change: $-6.64, Percent Change: -7.69%
