RBC cuts Karman Holdings stock price target on near-term caution
RBC Capital reduced its price target on Karman Holdings Inc (NYSE:KRMN) to $70 from $85, according to a report on Sunday. The firm's analyst, Ken Herbert, maintained an Outperform rating for the defense technology company, which has dropped 51% year-to-date. Karman Holdings trades at $34.62, near its 52-week low of $32.20, with a 57.55% decline over the past six months.
The stock is considered oversold according to the Relative Strength Index (RSI). The analyst highlighted several concerns, such as management and auditor changes, unclear growth prospects, and mixed signals in financial reports. Karman Holdings responded positively by improving its disclosures and communication strategies. However, investors are likely to await the third-quarter 2026 results before changing their stance on the stock.
Despite the current concerns, the company is viewed as a strong player in the sector, with potential benefits from growth trends in the global space and defense industries. Guggenheim Securities also expressed bullish sentiment, assigning a Buy rating and setting a price target of $63.00. Meanwhile, a short-seller, JCap, remains skeptical about Karman Holdings' ability to generate cash flows, questioning the link between revenue growth and profitability.
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