Redwire is a space stock to own, this analyst says

Redwire’s (Redwire Stock Quote, Chart, News, Analysts, Financials NYSE:RDW) Edge Autonomy drone has been added to a key U.S. Department of Defense supplier list, Roth Capital Markets analyst Suji Desilva noted in a July 15 note, calling the move timely following the federal government’s recent push to speed up drone deployment. He maintained a “Buy” rating and $25.00 price target.

“We believe the US military and government agencies will be more serious about re-establishing drone technology superiority and will look to suppliers such as RDW to help rapidly achieve this goal,” Desilva said.

Jacksonville, Florida-based Redwire Corporation is a space technology company that provides components and services for space exploration, defense, and commercial missions. Formed in 2020 through a series of acquisitions, the company focuses on spacecraft assembly, advanced sensors, and on-orbit servicing. Redwire has about 700 employees and operates across ten sites in the U.S. and Europe.

Redwire said its Edge Autonomy Stalker drone has been added to the DOD/DIU Blue List. This comes just a week after the U.S. government announced plans to speed up drone production and deployment.

Desilva said the Stalker drone’s inclusion on the government’s Blue List is likely to speed up how quickly agencies can buy and deploy it.

“As a result, group 2 drones, such as Stalker, are now to be defined as consumables, enabling more rapid purchase/deployment by U.S. government agencies, in our view,” Desilva said.

He added that passing the list’s strict testing standards supports the value of Redwire’s acquisition of Edge Autonomy and its long history in drone technology. The listing boosts confidence in steady year-over-year drone revenue, and Desilva expects the company’s backlog to grow as government demand rises. He also noted that as space becomes more of a defence concern, Redwire is well-positioned to support key initiatives like “Golden Dome for America” through its range of space-focused assets.

“We believe that RDW’s disruptive airborne and unique VLEO drone capabilities compete favorably versus comparable defence/spacetech company portfolios.”

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