Truist, RBC Capital Cut VSE's Price Target Post Q4 Results - VSE (NASDAQ:VSEC)

Truist analyst Michael Ciarmoli maintained the Buy rating on the shares of VSE Corp VSEC and lowered the price target to $65 from $73. Ciarmoli remains optimistic about the company.
RBC Capital analyst Ken Herbert lowered the price target on VSE to $65 (an upside of 47%) from $70 and kept an Outperform rating on the shares.
Recently, VSE reported fourth-quarter revenues of $210.2 million, an increase of 40.1% year-over-year, beating the consensus of $203.71 million.
Adjusted EPS improved to $0.53 from $0.52 in 4Q20, missing the consensus of $0.78.
The operating income was down 9.9% Y/Y to $10.74 million, and the margin declined by 283 bps to 5.1%.
Adjusted EBITDA increased to $17.8 million in Q4 versus $17.3 million for the same period in 2020. Margin contracted by 303 bps to 8.5%.
The company generated a free cash flow of $10.0 million in Q4 versus $(0.9) million in 4Q20.
"We ended the year with $122 million of available liquidity. Looking ahead, we intend to prioritize capital allocation increasingly toward organic and inorganic growth opportunities that support our focus on long-term sustainable revenue and higher margin businesses. In 2022, we expect to be free cash flow positive as full year contributions from recently launched programs and completed acquisitions support incremental growth in EBITDA," said CEO Stephen Griffin.
Dividend: The company declared a quarterly cash dividend of $0.10 per share, payable on May 18, 2022, to stockholders of record on May 4, 2022.
Also Read: VSE Secures $100M Sole-Source Bridge Contract From US Navy.
Price Action: VSEC shares trading lower by 2.41% at $44.21 on the last check Friday.

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