Analyst Josh Sullivan of Benchmark Co. reiterated a Buy rating on BlackSky Technology (BKSY – Research Report), with a price target of $3.00.
Josh Sullivan’s Buy rating for BlackSky Technology Inc. (BKSY) is attributed to a multitude of reasons. BlackSky is on the verge of achieving EBITDA break-even, with their 3Q:23 performance nearly hitting the target. The company also secured a monumental $1B EOCL contract this quarter, which led to the achievement of initial operating capability. This new partnership with the NRO allows them to tap into a vast pool of government customers. BKSY is also demonstrating the potential operating leverage in its system as costs decrease while sales increase, which contributed to the EBITDA beat. Despite some timing issues with contracts and CAPEX, the company is progressing well, with sufficient cash, imminent EBITDA break-even, and the operating leverage starting to show.
BKSY’s Q3:23 revenues were slightly below Street’s expectations, but the adjusted EBITDA was much better than anticipated. They’ve updated their FY23 revenue guidance which now sits at $84M-$90M due to the timing of several new contract wins. The company has also seen a rise in their Capex expectations because of the payments due for the upcoming GEN-3 constellation. Backlog/Bookings for the quarter revealed $20M of new contracts and renewals, and there were no cancellations. The company also reached a key milestone with the $1B EOCL contract as it successfully completed the Initial Operating Capability (IOC) under the contract, making it the first commercial company to successfully integrate with the NRO. This allows BKSY to scale its delivery of imagery via a series of APIs and enterprise interfaces directly to government customers.
According to TipRanks, Sullivan is a 5-star analyst with an average return of 6.8% and a 57.49% success rate. Sullivan covers the Industrials sector, focusing on stocks such as VSE, HEICO, and Spirit AeroSystems.
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BlackSky Technology (BKSY) Company Description:
Osprey Technology Acquisition Corp is a blank check company.
Read More on BKSY:
- BlackSky narrows FY23 revenue view to 84M-$90M, consensus $87.33M
- BlackSky reports Q3 EPS 0c, consensus (12c)
- BlackSky announces contracts for legacy Ministry of Defense customer, no terms
- BlackSky wins Air Force research contract
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