VSE Corp (VSEC): Assessing Valuation Opportunities Following Recent Increases in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Source: Yahoo Finance
Recent Performance: VSE (VSEC) shares have increased over 4% in the past week, contributing to a nearly 88% year-to-date advance and a total shareholder return of 51% over the past year.
Valuation Insights: The current share price is 18% below the average analyst price target, suggesting potential for further gains, while the price-to-earnings ratio of 69.7x indicates high investor expectations for future growth.
Growth Drivers: The company is benefiting from cost synergies from acquired businesses, margin expansion, and growth opportunities in the aviation aftermarket due to rising air travel and defense spending.
Risks and Considerations: Continued reliance on acquisitions and fluctuations in aviation demand pose challenges to VSE’s growth momentum, and the premium valuation raises questions about whether investor optimism is justified.
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Analyst Views on VSEC
Wall Street analysts forecast VSEC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VSEC is 206.50 USD with a low forecast of 195.00 USD and a high forecast of 222.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 217.640
Low
195.00
Averages
206.50
High
222.00
Current: 217.640
Low
195.00
Averages
206.50
High
222.00
About VSEC
VSE Corporation is a provider of aviation distribution and repair services for the commercial and business and general aviation (BG&A) aftermarkets. The Company's aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services support engine component and engine and airframe accessory part distribution and repair services for commercial and BG&A operators. The Company is an authorized distributor of OEM turbine engine parts, avionics, actuation, airframe components and tires. It specializes in repairing high-flow/high-temp pneumatics, fuel accessories, electrical accessories, avionics, engine components, engine and airframe accessories, interiors, cargo systems, and wheels and brakes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Defense Spending Approaches $1 Trillion Milestone
- Defense Budget Surge: The advancement of an $839 billion defense bill by Congress is pushing total defense spending toward the historic $1 trillion mark, which is expected to drive global commercial aftermarket MRO demand at a 3.2% CAGR through 2035, creating significant market opportunities for related companies.
- Strategic Partnership: VisionWave Holdings signed a strategic exchange agreement worth $7 million with Israeli company SaverOne, potentially allowing VisionWave to control approximately 51% of SaverOne, enhancing concealed threat detection capabilities and strengthening market competitiveness through combined technologies.
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- Market Expansion Plans: VisionWave, through its subsidiary Solar Drone Ltd., has secured hardware orders and distribution agreements in Southern Europe, planning to invest up to $10 million over the next 6 to 12 months to accelerate commercialization efforts to meet infrastructure maintenance needs in Italy and Spain.
Continue Reading