We came across a bullish thesis on Redwire Corporation (RDW) on wallstreetbets Subreddit Page by electricalfather. In this article, we will summarize the bulls’ thesis on RDW. Redwire Corporation (RDW)’s share was trading at $13.96 as of Nov 29th.
A huge in-process machining center producing parts for aircraft and aerospace systems.
Redwire Corporation stands out as an undervalued gem in the burgeoning space sector, leveraging its foundational success as a critical supplier across diverse aerospace domains. The company’s partnerships with giants like NASA, Lockheed Martin, Boeing, Blue Origin, and Rocket Lab underscore its dominant footprint in space infrastructure. Notably, Redwire’s ongoing collaboration with Eli Lilly on 3D bioprinting organs in space represents groundbreaking innovation with significant progress reported. The acquisition of Hera Systems has further bolstered its presence in the national security space market, complemented by its advanced RF payload contracts with leading defense contractors.
Strategic alliances continue to propel Redwire forward, including its membership in the US-U.A.E. council, which highlights its role as a leader in American space innovation. Redwire’s Memorandum of Understanding with NASA’s REMIS-2 mission and its critical onboard computer contributions to the European Space Agency’s Hera planetary defense mission exemplify its pivotal role in next-generation space initiatives. Furthermore, Redwire’s provision of solar arrays for Thales Alenia and development of the advanced Valkyrie Thruster for surging national security programs reinforce its technological edge. The company also secured a DARPA prime contract to integrate revolutionary air-breathing satellite propulsion for very-low Earth orbit (VLEO) missions and is developing a robotic arm for the European Lunar Exploration Mission.
Despite these advancements, Redwire remains strikingly undervalued compared to peers like Rocket Lab and ASTS, trading at a modest P/S ratio of 1.58 with a market cap of just $900M. Analysts suggest that a fair valuation could see Redwire’s stock reaching $42, offering substantial upside. The space sector is gaining momentum as a thematic investment trend, driven by high-profile successes from SpaceX, ASTS, and Rocket Lab’s milestones. With a market cap poised to surpass $1 billion by year-end in a worst-case scenario, Redwire offers a rare combination of advanced capabilities and untapped growth potential. Its CEO’s mantra, “If space wins, Redwire wins,” captures the company’s trajectory as the building blocks of space infrastructure.
Redwire Corporation (RDW) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held RDW at the end of the third 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 RDW 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.