Karman (NYSE:KRMN) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham reiterated a Buy rating on Karman with a $125 price target (about a 25.5% upside), while the Street consensus is a "Moderate Buy" with an average target near $116.90.
• Karman reported Q4 revenue of $134.5M, up 47.5% year-over-year, and guided to roughly 53% revenue growth for fiscal 2026 while planning capacity expansion and M&A to support that growth.
• Valuation and profitability are key risks: the stock trades at a very high P/E (~398) with modest net margins (~2.7%), so missed execution or delayed margin improvement could trigger a sharp pullback.

Karman (NYSE:KRMN - Get Free Report)'s stock had its "buy" rating reiterated by Needham & Company LLC in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $125.00 target price on the stock. Needham & Company LLC's target price would indicate a potential upside of 25.51% from the stock's previous close.

Other equities research analysts also recently issued research reports about the company. Truist Financial set a $118.00 price objective on Karman in a report on Friday, January 9th. BWS Financial restated a "sell" rating and set a $37.00 target price on shares of Karman in a report on Thursday, January 22nd. Piper Sandler raised shares of Karman from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $110.00 to $127.00 in a research report on Friday, March 6th. Robert W. Baird increased their price target on shares of Karman from $115.00 to $135.00 and gave the company an "outperform" rating in a research note on Friday, March 20th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Karman in a research report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $116.90.

Karman Price Performance

NYSE:KRMN opened at $99.60 on Thursday. Karman has a 52-week low of $25.02 and a 52-week high of $118.38. The company has a market cap of $13.18 billion and a P/E ratio of 398.39. The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.69 and a current ratio of 2.86. The stock's 50-day simple moving average is $97.37 and its 200 day simple moving average is $81.97.

Karman (NYSE:KRMN - Get Free Report) last issued its quarterly earnings results on Wednesday, March 25th. The company reported $0.11 EPS for the quarter, meeting the consensus estimate of $0.11. The firm had revenue of $134.49 million during the quarter. Karman had a return on equity of 11.11% and a net margin of 2.65%.Karman's revenue was up 47.5% compared to the same quarter last year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Robert Wood Johnson Foundation bought a new position in Karman during the 3rd quarter worth $70,488,000. Federated Hermes Inc. bought a new stake in shares of Karman during the 3rd quarter valued at $2,055,000. Congress Asset Management Co. bought a new stake in shares of Karman during the 4th quarter valued at $24,212,000. TimesSquare Capital Management LLC lifted its position in shares of Karman by 361.7% during the 3rd quarter. TimesSquare Capital Management LLC now owns 1,546,905 shares of the company's stock valued at $111,687,000 after acquiring an additional 1,211,845 shares during the period. Finally, Huntleigh Advisors Inc. acquired a new stake in shares of Karman during the 3rd quarter worth $2,466,000.

Key Headlines Impacting Karman

Here are the key news stories impacting Karman this week:

• Positive Sentiment: Karman guided to roughly 53% revenue growth for fiscal 2026 and said it will expand manufacturing capacity and pursue M&A to support that growth — a clear growth signal that can drive multiple expansion if execution continues. Karman Holdings expects 53% revenue growth for 2026 while expanding capacity and M&A activity
• Positive Sentiment: Q4/FY25 revenue came in at $134.5M, up 47.5% year-over-year (record sales), and management raised the outlook tied to defense backlog strength — the revenue momentum and backlog underpin near-term organic growth expectations. Karman Space & Defense Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
• Positive Sentiment: Analysts are bullish: Needham reiterated a Buy and kept a $125 price target after the beat and raised outlook; other coverage moved consensus targets into the $116–125 range, which supports further upside if guidance is met. Karman Holdings Inc.: Record FY25 Beat, Raised 2026 Outlook, and Robust Defense Backlog Underpin Buy Rating and $125 Target
• Positive Sentiment: Street targets lifted: a recent compilation shows an average target near $116.90, reflecting bullish analyst revisions after the quarter. Analysts Set Karman Holdings Inc. NYSE: KRMN Target Price at $116.90
• Neutral Sentiment: Earnings per share of $0.11 matched consensus; the quarter was top-line driven while EPS was in line, so upside is currently growth- rather than margin-driven. Karman Q4 Press Release / Slide Deck
• Neutral Sentiment: Management commentary and the full earnings call/slides are available for details on timing of capacity expansions and M&A — useful for assessing execution risk but not immediate catalysts by themselves. Karman Holdings Inc. (KRMN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Valuation and profitability concerns: Karman trades at a very high EV/earnings multiple (PE ~398) with modest net margins (~2.7%), so disappointed execution or delayed margin improvement could trigger a sharp pullback. (Background company metrics cited in filings and market summaries.)
• Negative Sentiment: Some outlets flagged “mixed results”—top-line strength but margins and EPS not yet showing commensurate improvement—so the headline guidance carries execution risk that could temper gains if targets slip. Karman posts mixed results, lifts outlook on defense demand

About Karman

We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications.

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