Bank of America says the defense contractor V2X is benefiting from a "scale and scope strategy coming to fruition." BofA upgraded the 11-year-old, Reston, Virginia-based manufacturer to buy from neutral on Wednesday, raising its price target to $65 per share from $55. The bank's forecast implies more than 19% upside from Tuesday's $54.56 close. V2X jumped 7% in early trading Wednesday, bringing its year-to-date gain to 22%. Analyst Mariana Perez Mora pointed to V2X recently winning a contract tied to the T-6 aircraft "as a key enabler of growth." "[W]e would expect to start to see full revenue contribution from the contract beginning in 2027. The predecessor contract (V2X won the current iteration as a takeaway) obligated ~$200-$300mn in funding annually," the analyst said. "We think this is a reasonable assumption on a go-forward basis for contribution to V2X as the contract fully ramps." VVX YTD mountain V2X stock in 2025. Bank of America also highlighted V2X's advantage over competitors, owing to its "strategy to provide full-lifecycle support to increasingly complex military operations." "In addition to the scale and scope strategy at logistics and maintenance work, we appreciate that V2X is also winning awards to 'move up the food chain' and take part in higher-growth, higher-margin work," the BofA analyst said. "We think this combination will result in accelerating and sustainable growth in the years to come and, thus, re-rating." In other words, the stock is likely to sell for a higher price-to-earnings ratio.
