Core Viewpoint - Karman Holdings (NYSE: KRMN) has been initiated at a Sell rating by BWS Financial with a price target of $37, highlighting concerns over aggressive accounting practices and financial health [1][2]. Group 1: Company Performance - Karman has experienced strong demand linked to hypersonic and tactical missile programs, as well as exposure to the space industry, which has driven backlog growth and raised investor expectations for multi-year revenue expansion [2]. - The company’s unbilled revenue as a percentage of reported revenue has increased to over 43%, indicating potential issues with revenue recognition [3]. Group 2: Financial Concerns - There are concerns regarding Karman's reliance on acquisitions to bolster backlog, which has resulted in increased leverage and a levered balance sheet [3]. - The lack of free cash flow generation alongside elevated valuation presents significant headwinds for the company [3]. - The exit of Karman's private-equity sponsor from its entire position at $49 per share raises additional concerns about the company's financial stability [3].
BWS Financial Initiates Karman Holdings With Sell Rating
Financial Modeling Prep·2026-01-12 21:59