Analyst Scott Buck from H.C. Wainwright maintained a Buy rating on Terran Orbital Corp (LLAP – Research Report) and keeping the price target at $3.00.
Scott Buck has given his Buy rating due to a combination of factors surrounding Terran Orbital Corp’s recent financial performance and future prospects. The company’s quarterly revenue exceeded estimates, coming in at $31.6 million against the anticipated $30.7 million. Moreover, Terran Orbital achieved a record annual revenue growth of 44.2%, indicating a strong fulfillment of customer contracts. This growth trajectory is expected to persist through 2024 and 2025, buoyed by a significant backlog worth approximately $2.7 billion. Despite the potential for increased volatility stemming from a canceled conference call and speculative investor sentiment regarding a potential acquisition by Lockheed Martin, Buck remains optimistic about the company’s position to capitalize on the accelerating trends in space technology.
Operationally, Terran Orbital exhibited disciplined cost management with operating expenses falling below expectations, even as gross margins contracted. The company’s full-year gross margin showed improvement, providing positive signals for its direction moving forward. Furthermore, the doubling of projected revenue for 2024, based on additional deliveries and contracts, points towards a narrowing EBITDA loss and a trajectory towards profitability by the end of the year. Buck’s unchanged price target of $3.00 aligns with the belief that as the company’s path to profitability becomes more visible, investor interest in the undervalued stock is likely to intensify, especially given its current trading at just 0.6 times the 2025 Street revenue estimates.
In another report released on March 26, Stifel Nicolaus also maintained a Buy rating on the stock with a $7.00 price target.
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Terran Orbital Corp (LLAP) Company Description:
Tailwind Two Acquisition Corp is a blank check company.
