Arxis (ARXS) has maintained its pace of acquisitions, which are expected to add around 8% to 2026 revenue growth and provide a significant revenue and margin tailwind heading into 2027, RBC Capital Markets said in a Friday research note.

The company reported robust adjusted earnings before interest, taxes, depreciation, and amortization margins in Q2 and upwardly revised 2026 guidance reflecting better growth across defense, aerospace, and industrial markets, RBC added.

Management continues to point to mid-single-digit growth in pricing, but now expects double-digit market-driven volume growth across end markets, supporting its 20% organic growth outlook, according to the note.

The firm said the company's merger and acquisition pace has been impressive, but added it remains cautious on continued pace of multiple expansion.

The brokerage reiterated its sector perform rating on the stock and boosted its price target to $50 per share from $46 earlier.

Price: 52.17, Change: +3.19, Percent Change: +6.51