Redwire Corporation (NYSE:RDW) is highlighted as one of the best space stocks to buy according to hedge funds. Canaccord analyst Austin Moeller reiterated a Buy rating on Redwire with a 12-month price target of $21, implying a 24% upside from current levels around $17.70. The firm’s expanding capabilities in defense, especially its Edge Autonomy drone tech, are key factors driving this positive outlook.

The VXE30 Stalker UAS, known for its 8+ hours of flight endurance and inclusion on the DoD’s Blue UAS list, showcases Redwire’s commitment to defense adoption. The company’s focus on securing federal and NATO contracts through drone-satellite end-to-end encrypted communication systems gives it an edge in secure ISR and tactical applications. This strategic approach positions Redwire well in the evolving aerospace and defense landscape.

Following its acquisition of Edge Autonomy in 2025, Redwire has transformed into a multi-domain space and defense technology integrator. The company now offers advanced spacecraft components, deployable solar arrays, robotics, unmanned aerial systems, and ISR capabilities to NASA, DoD, and allied space agencies, as well as U.S. and NATO defense forces. This diversification broadens Redwire’s market reach and strengthens its position in the industry.

While Redwire presents potential as an investment, some believe that certain AI stocks may offer greater upside potential with lower downside risk. Investors seeking opportunities in the AI sector may want to explore other options in addition to Redwire. For those interested in undervalued AI stocks poised to benefit from current market trends, further research and analysis are recommended to make informed investment decisions.

Read more at Yahoo Finance: Analyst Backs Space Firm’s Defense Expansion