We came across a bullish thesis on Redwire Corporation (RDW) on wallstreetbets subreddit page by Stonkgang_. In this article, we will summarize the bulls’ thesis on RDW. Redwire Corporation’s share was trading at $8.83 as of Oct 24th.
A satellite hovering in space capturing Earth Observation data.
Redwire Corporation has rapidly established itself as a key player in the space sector, becoming a global leader in space infrastructure. The company provides systems, payloads, and services for national security space missions. Leveraging a host of strategic partnerships and acquisitions to enhance its capabilities and presence across multiple domains. Already a supplier for Rocket Lab since May 2024, Redwire also collaborates with major entities like NASA, Lockheed Martin, Boeing, and Blue Origin. Its groundbreaking partnership with Eli Lilly on 3D bio-printing organs in space underscores its commitment to cutting-edge space technology. Through the recent acquisition of Hera Systems, Redwire aims to strengthen its position in national security space solutions, further evidenced by its selection to provide advanced RF payloads to a prominent defense contractor. The company’s influence has extended internationally, as seen in its membership in the U.S.-U.A.E. council, where it represents American innovation in space infrastructure.
Redwire’s ongoing collaborations with NASA include a Memorandum of Understanding for the REMIS-2 mission, covering a wide array of services like hardware, software, and payload facility integration. It’s also been tapped by the European Space Agency (ESA) to develop an onboard computer system for ESA’s Hera Mission, Europe’s premier planetary defense project, and to supply solar arrays for Thales Alenia Telecommunications’ product line. Beyond these contributions, Redwire is advancing thruster technology for national security applications under a contract with the Spacecraft Components Association and has been awarded a DARPA prime contract to integrate a revolutionary air-breathing satellite using novel electric propulsion for very-low earth orbit.
A flurry of additional contracts, including one with the ESA to design a robotic arm for an International Lunar Exploration Mission and another with Rocket Lab for antennas and RF hardware, underscore Redwire’s extensive growth and operational reach. This acquisitive expansion reflects the strategic foresight of Redwire’s CEO, whose motto, “If space wins, Redwire wins,” embodies the company’s mission to be the backbone of space exploration infrastructure.
Despite its strong growth trajectory, Redwire remains significantly undervalued compared to peers like Rocket Lab, with a price-to-sales ratio of only 1.58 and a market cap of $450 million versus Rocket Lab’s $4.28 billion. Following recent investor enthusiasm fueled by SpaceX’s accomplishments and Rocket Lab’s 50th successful launch, the space sector is primed for a rally similar to those seen in EV and AI sectors. Even conservatively, Redwire has the potential to reach a $1 billion market cap by year-end. As investor interest in the space industry rises and Redwire’s revenue base remains stable, the company presents a compelling opportunity as it builds critical infrastructure for the sector’s next phase of expansion.
Redwire Corporation is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held RDW at the end of the second quarter which was 8 in the previous quarter. While we acknowledge the risk and potential of RDW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.