RBC Capital Says VSE Lacks Near-Term Catalysts - Read Why - VSE (NASDAQ:VSEC)

RBC Capital analyst Ken Herbert downgraded VSE Corp VSEC to Sector Perform from Outperform on lack of near-term catalysts and strategic uncertainty.
The analyst also lowered the price target for VSEC to $48 (an upside of 27%) from $65.
Herbert believes that the aviation business will drive sentiment, and he likes the company's opportunities in both distribution and MRO.
Meanwhile, he added that the near-term outlook for margin upside is limited, and business mix headwinds have limited investor willingness to pay for the aviation upside.
The valuation remains attractive, but the analyst believes the stock lacks a near-term catalyst that will attract additional investor interest.
Price Action: VSEC shares are trading lower by 7.33% at $37.79 on the last check Wednesday.

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RBC Capital Says VSE Lacks Near-Term Catalysts - Read Why