Initiate at BUY: No Tripping Over The Future, Blue Skies Ahead

研报英文原文证据摘录

Initiate at BUY: No Tripping Over The Future, Blue Skies Ahead

USA | Aerospace & Defense Electronics

Applied Aerospace & Defense EquityJuneResearch28, 2026

INITIATING COVERAGEInitiate at BUY: No Tripping Over The Future,

RATING BUYBlue Skies Ahead

PRICE $20.50^

Applied Aerospace & Defense's complex engineered systems and structures

for the Space & Defense market drive a competitive moat and recurring/ PRICE TARGET | % TO PT $25.00 | +22%

growing rev stream on rising demand. There is runway across Missiles (25% of 52W HIGH-LOW $23.00 - $17.08

sales) and Aviation (55%) supporting sustained mid-teens organic rev CAGR + FLOAT (%) | ADV MM (USD) 19.0% | 59.44

strategic M&A (+20 pts in 2026). Specialized content earns a mid-20% EBITDA MARKET CAP $3.5B

margin on price/execution. Initiate at BUY with $25 PT on 5X/20X 2028 Rev/ TICKER AADX ^Prior trading day's closing price unless otherwise

EBITDA. noted.

Applied Aerospace Building Complexity at Scale. Applied Aerospace and Defense is a designer FY (Dec) CHANGE TO JEFe JEF vs CONS

of hard to build A&D/space systems, components and structures. The company was formed in 2026 2027 2026 2027

November 2025 through the merger of PCX and AASC creating a scaled company to serve its REV NA NA NA NA

customers across 150 platforms. Its IP is in working with challenging materials and processes to

EPS NA NA NA NA

manufacture components that can withstand the harshest environments. Its biggest asset is scale

creating a one-stop shop for primes and defense tech companies alike to get proven consistent

performance at a competitive price point and in many cases at better value than internal capability.

The cost of failure is high, reinforcing Applied's cemented/recurring position in the supply chain.

Table 1 - Expanding Revenue at a Mid-Teens