Palantir Technologies Inc (NASDAQ: PLTR) has been the darling among retail investors interested in playing the defence-tech space in recent months.
However, with a forward price-to-earnings (P/E) multiple of well past 400, the data analytics firm sure warrants caution at the time of writing.
For those overly concerned about PLTR valuation, Virginia-headquartered V2X Inc (NYSE: VVX) may be a better pick for exposure to the defence technology market, says a Bank of America analyst.
Note that V2X stock is currently up nearly 50% versus its year-to-date low in late February.
Why is BofA bullish on V2X stock?
According to Mariana Perez Mora, a senior BofA analyst, VVX shares are worth owning in the second half of 2025 as they’re benefitting from a “scale and scope strategy coming to fruition.”
On Thursday, Mora upgraded V2X stock to “buy”, saying its recent T-6 aircraft contract will prove “a key enabler of growth” moving forward.
Given the predecessor contract obligated up to $300 million in annual funding, “this is a reasonable assumption on a go-forward basis for contribution to V2X as the contract fully ramps,” the analyst told clients.
Full revenue contribution from the aforementioned contract is broadly expected to start in 2027.
V2X shares do not currently pay a dividend, though.
Why are VVX shares gaining on Thursday?
VVX stock opened comfortably in the green this morning after the NYSE-listed firm named Stan Budraitis as Vice President of Business Development (Army Aviation Programmes).
The Brigadier General (Ret.) brings over three decades of experience in Army aviation, including senior command roles and deep operational expertise to V2X Inc.
His appointment is a bullish signal for V2X shares as his in-depth knowledge and strategic relationships could accelerate contract wins.
His leadership aligns with V2X’s focus on mission-critical aviation support, enhancing credibility and positioning the company for growth in high-margin defence segments.
Backed by a decorated service record and strategic education, Budraitis strengthens V2X’s ability to navigate procurement cycles and expand its Army footprint – potentially boosting revenue visibility and investor confidence.
How Wall Street recommends playing V2X Inc
V2X may prove a better investment than Palantir stock for exposure to the rapidly growing defence technology market, as it’s currently trading at a forward P/E ratio of about 11 only.
That’s an infinitely more digestible valuation compared to the high-flying PLTR shares.
Investors should also note that BofA is not the only Wall Street firm that’s bullish on V2X stock in the second half of 2025.
In fact, the consensus rating on VVX shares currently sits at “moderate buy”, according to The Wall Street Journal.
In conclusion, with a modest valuation, strategic leadership, and bullish analyst sentiment, V2X emerges as a compelling defence-tech play – potentially outshining PLTR in the back half of 2025.
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