Redwire (RDW) Tumbles 15.7% After Jefferies Downgrade Flags Valuation Concerns

Shares of Redwire (NYSE:RDW) fell 15.7% on June 2, 2026, after Jefferies downgraded the aerospace and defense company to Hold from Buy, warning that its stock rally had outpaced fundamentals. The downgrade accompanied a raised price target to $24 from $13, but the analyst noted the shares had surged more than 220% year-to-date through May, driven by multiple expansion rather than improved financial outlook. Jefferies said Redwire, which remains unprofitable, must prove it can convert its growing order backlog into actual revenue and profit. Redwire’s decline follows a broader space-sector rally sparked by SpaceX’s IPO filing. The stock is up 129% in 2026 but trades about 20% below its 52-week high of $25.90.