Should I Buy Redwire (RDW)? Finance YouTuber Analysis

Redwire is highlighted as a pure-play space infrastructure company, building physical components for satellites and space stations, with significant contracts including a $1.8 billion deal with the Department of Defense. Despite a recent pullback and being a high-risk growth stock that is still burning cash, the YouTuber sees a 'second chance' opportunity. The recommendation is to buy if the stock bottoms out and then exceeds its recent high of around $17.30, indicating a bullish technical setup.

“But I believe right here where we are is is your second chance. Doesn't mean you should run out and buy it obviously, but what I'm what am I looking for? I'm looking for a stock that pulls back from its squeeze up, which it did. And then I'm looking for that to bottom out ideally above this magic little line we're going to talk more about on Sunday. And then what I would really like for this to do, I'd like for this to exceed the recent high, which would be around about, let me give you the number, 1730 or thereabouts.”

The YouTuber previously recommended Redwire, which has seen significant gains. He suggests buying on a pullback, implying continued upside potential as part of the broader space industry growth, particularly with the upcoming SpaceX IPO.

“If you didn't get into these, I would buy these only on a pullback.”

The analyst suggests Redwire as a 'picks and shovels' play in the space industry, building essential hardware for satellites, space stations, and lunar missions. The company has strong government contracts and is positioned to benefit from the increasing space buildout, with potential catalysts from commercial space station projects. Technical analysis indicates a potential breakout above recent highs, supported by institutional buying.

“This is a $2 billion company. This could become a $20 billion company. It's quite feasible, right?”

The YouTuber includes Redwire on his watch list, recognizing its role in building space infrastructure like solar arrays and avionics, and its recent expansion into defense drones. However, he notes that much of its growth has come from issuing new shares, which he dislikes. He suggests waiting for a pullback to around $13 or $14, anticipating that the SpaceX IPO could cause a rotation out of other space stocks.

“So yeah, red wire is firmly on my list but the level that I'm watching for is closer to around $13 or $14.”