Investing.com - Stifel initiated coverage on V2X, Inc. (NYSE: VVX ) with a buy rating and a price target of $55.00 on Monday.

The price target represents potential upside based on an approximately 8.75x 2026E EV/EBITDA multiple, according to Stifel’s research note.

The firm noted this valuation is in-line with V2X’s three-year historical average and maintains a consistent discount to the company’s peers in the government services sector.

Stifel identified several potential downside risks to its investment thesis, including unexpected federal budget disruptions and headwinds from slower-than-expected ramp-up of contract awards.

Additional risks highlighted in the research note include staffing challenges and growing competitive pricing pressure from government initiatives that could impact V2X’s performance.

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