VSE Corporation (NASDAQ: VSEC) stock exhibited remarkable stability during the recent trading session, experiencing a modest uptick of 4.05%, ultimately concluding the session at $55.58.
Noteworthy, the performance of VSE Corporation’s stock has demonstrated impressive growth, surging by more than 40% over the course of the preceding 12 months.
An analyst from Benchmark on October 5, 2023, confidently reiterated his optimistic perspective on VSE Corporation (VSEC) stock. In his comprehensive evaluation, Benchmark analyst Josh Sullivan accentuated a favorable BUY rating for the company, simultaneously maintaining a price target of $70.
This designated target price underscores a prospective ascent of more than 31% from the closing price on the day.
On the preceding day, VSE Corporation entered into a significant agreement with Honeywell International Inc., granting its aviation division, VSE Aviation, exclusive rights to manufacture and support specific Honeywell fuel control systems across four key engine platforms.
Under this arrangement, VSE Aviation acquired contracts, equipment, and inventory from Honeywell, allowing them to exclusively produce, oversee aftermarket distribution, and repair over 340 Honeywell fuel control systems.
These systems will support more than 20,000 aircraft powered by Rolls Royce and Pratt & Whitney Canada engines.
This agreement expands VSE Aviation’s existing role as the exclusive distributor of Honeywell’s fuel control systems since 2015 and solidifies its position as a licensed manufacturer with perpetual intellectual property rights.
In a separate development, VSE Corporation (VSEC) has entered into a mutual understanding to terminate the previously announced deal to divest its Federal and Defense segment to Bernhard Capital Partners (“BCP”). VSEC originally unveiled this agreement in May of the current year.
VSE Corporation (VSEC) remains steadfast in its intent to pursue the divestiture of the Federal and Defense segment, a strategic maneuver designed to expedite the realization of its growth objectives as a two-segment aftermarket business entity.
These developments underscore VSEC’s dedication to expanding its aerospace capabilities while strategically streamlining its business structure for future growth.
