Applied Aerospace & Defense: Structurally linked to booming space and defense demand; Initiate at Buy, PO of $24

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Applied Aerospace & Defense: Structurally linked to booming space and defense demand; Initiate at Buy, PO of $24

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Applied Aerospace & Defense

Structurally linked to booming space and

defense demand; Initiate at Buy, PO of $24

Initiating Coverage: BUY | PO: 24.00 USD | Price: 20.53 USD

Well positioned across key program priorities 29 June 2026

We initiate coverage of Applied Aerospace & Defense (AADX) with a Buy rating and a PO Equity

of $24, reflecting 23x 2027E EV/EBITDA. AADX is a provider of critical subsystems

supporting platforms including rotary and fixed wing tactical aircraft, missiles, Ronald J. Epstein Research Analyst

munitions, radars, and space systems and launch vehicles, aligning AADX to US and allied BofAS

national security priorities. We forecast 14% revenue growth CAGR (2025A-2030E) and +1r.epstein@bofa.com646 855 5695

~350bps of margin expansion by 2030E given multiple growth vectors and operating Mariana Perez Mora

leverage. The 23x multiple is in line with space- and defense-exposed suppliers and a Research Analyst

BofAS

1.7x premium to S&P 500 given growth prospects. +1 646 855 5696

mariana.perezmora@bofa.com

Near-term visibility with view to long-term upside Alexander Preston

Research Analyst

AADX has >80% sole-source positioning on existing programs given company emphasis BofAS

on IP-enabled processes and a legacy of acquisitions of differentiated providers. Current +1 646 855 3599

alexander.preston@bofa.com

backlog of $1.06bn provides visibility on growth in the near term, while AADX’s

embedded positioning on long-lived legacy programs and rapidly expanding growth

opportunities support confidence in growth estimates.

Stock Data

Aligned to enduring program tailwinds Price 20.53 USD