Analyst Scott Buck of H.C. Wainwright reiterated a Buy rating on Terran Orbital Corp (LLAP – Research Report), with a price target of $3.00.
Scott Buck’s Buy rating on Terran Orbital Corp is based on a combination of positive financial developments and the potential for future growth. The company recently received a significant payment from Rivada Space Networks, a key customer, which not only boosted its cash position to over $70 million but also signaled that Rivada is current with all outstanding invoices. This financial boost is expected to be augmented by additional milestone payments in 2024, related to a substantial $2.4 billion contract. Buck anticipates that these incoming funds could lead to Terran Orbital exceeding the current revenue forecast for 2024, which could, in turn, drive the share price of LLAP significantly higher. Moreover, these payments may alleviate concerns regarding the need for external capital to fund operations, potentially leading to profitability and cash flow generation within the year.
Furthermore, Terran Orbital is actively pursuing new business opportunities, with potential contracts valued at $2.7 billion across 80 different programs. This could provide a considerable boost to revenue in 2024, irrespective of the additional Rivada payments. The current trading price of LLAP shares, which is less than one times the consensus estimate for 2024 revenues, suggests there is room for substantial multiple expansion and share appreciation. Improved business visibility throughout 2024 bolsters Buck’s recommendation for investors to accumulate positions in LLAP now, in anticipation of contract wins, revenue growth, and expanding margins. Despite a note of caution and a more conservative revenue model than the consensus, Buck still sees significant value in LLAP shares, particularly as the company progresses towards profitability and improved financial visibility.
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Terran Orbital Corp (LLAP) Company Description:
Tailwind Two Acquisition Corp is a blank check company.
Read More on LLAP:
- Terran Orbital investors call for separation of chairman, CEO roles
- Terran Orbital price target lowered to $3 from $5 at H.C. Wainwright
- Terran Orbital lowers 2023 revenue view to above $130M from above $250M
- Terran Orbital reports Q3 EPS (15c), consensus (19c)
- investor group sends letter to Terran Orbital board regarding meeting request
