H.C. Wainwright Lowers Price Target on Redwire Stock from $26 to $22, Keeps Buy Rating

Redwire Corporation (NYSE:RDW) is one of the Best Small-Cap Drone Stocks to Invest In. On August 8, H.C. Wainwright lowered the price target on Redwire Corporation (NYSE:RDW) stock from $26 to $22, keeping its Buy rating.

Scott Buck from H.C. Wainwright downgraded the price target of RDW following challenging Q2 FY2025. The company posted revenue of $61.8 million, missing the estimates by $18.72 million. Redwire experienced a sequential decline in adjusted EBITDA, from a negative $2.3 million in Q1 to a negative $27.4 million in Q2, mainly affected by higher estimated costs on a single program. Moreover, the company also faced delays in the U.S. government budgeting processes, impacting revenue and pushing some awards into FY2026.

Buck has decreased 2026 estimates for Redwire; however, he recommends using the post-earnings selloff as a buying opportunity. Redwire’s subsidiary, Edge Autonomy, recently secured a prototype phase agreement by the U.S. Army to build and deliver its Stalker UAS for the Long Range Reconnaissance program.

Redwire Corporation (NYSE:RDW) is an integrated aerospace and defense company. The company is engaged in autonomous systems, including UAS, through Edge Autonomy.

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Disclosure: None. This article is originally published at Insider Monkey.