Analyst Scott Buck of H.C. Wainwright maintained a Buy rating on BlackSky Technology (BKSY – Research Report), retaining the price target of $2.50.
Scott Buck has given his Buy rating due to a combination of factors surrounding BlackSky Technology’s recent performance and future prospects. The company’s first quarter revenue for 2024 exceeded expectations, registering at $24.2 million, a significant increase from the previous year. This growth is further supported by the closing of numerous high-value contracts, indicating a strong sales momentum. Buck also points to the anticipated launch of Gen-3 satellites as a potential catalyst that could enhance service offerings and justify higher pricing, thus boosting future revenues.
Furthermore, the company’s solid financial position, evidenced by a new commercial bank line and pending payments for completed work, suggests a decreased likelihood of requiring dilutive external capital. With these factors, along with BlackSky’s adherence to its 2024 revenue and adjusted EBITDA guidance, Buck sees a clear trajectory towards cash generation. This financial stability and strategic execution are expected to attract new investors to BlackSky’s shares, reinforcing the rationale behind the Buy rating and a $2.50 price target.
In another report released yesterday, Craig-Hallum also reiterated a Buy rating on the stock with a $60.00 price target.
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BlackSky Technology (BKSY) Company Description:
Osprey Technology Acquisition Corp is a blank check company.
