Defense contractor V2X surges after BofA turns bullish

Shares of V2X Inc VVX.N up 7.2% early Weds to $58.49, a nine-month high, after BofA Global Research upgrades defense contractor to 'buy' from 'neutral'

Brokerage boosts PT by $10 to $65, implying 19% upside to stock's last close

"V2X’s strategy to provide full-lifecycle support to increasingly complex military operations has a strong competitive advantage, particularly considering that incumbents have overlooked these end markets because of their lower growth and lower margins," BofA wrote in note

In addition to the scale and scope strategy at logistics and maintenance work, BofA said V2X also winning awards to "move up the food chain" and participate in higher-growth, higher-margin projects

This combination will result in "accelerating and sustainable growth" in the years ahead, BofA said

Of 11 analysts covering V2X, recommendation breakdown is 8 "strong buy" or "buy", 1 "hold" and 2 "sell" ratings; median PT of $63 up from $56 a month ago, per LSEG data

With move on the session, VVX shares up ~22% YTD vs 30% gain in NYSE Arca Defense index .DFII

Mclean, Virginia-based V2X has roughly $1.9 bln market cap