Analyst Scott Buck from H.C. Wainwright reiterated 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 that signal a positive outlook for Terran Orbital Corp in the medium to long term. Despite a challenging first quarter in 2024 with revenues falling short of estimates due to Earned at Completion (EAC) adjustments, Buck remains optimistic. This optimism is fueled by the company’s substantial contract awards in the second quarter, totaling over $100 million, which have contributed to a robust backlog of approximately $2.8 billion. Moreover, he anticipates that a significant portion of this backlog will convert to revenue within the next 18 to 24 months, which should increase investor confidence and drive the company toward profitability.
Furthermore, Buck’s belief in the potential for profitability is reinforced by expectations of revenue scaling and the company’s ability to approach a 30% gross margin as it grows and stabilizes its quarterly performance. Despite the need to adjust revenue and EBITDA estimates downwards following the lower than expected performance in the first quarter, the projected growth from 2023 levels and the anticipated improvement in EBITDA loss are positive indicators. Buck maintains a $3.00 price target for Terran Orbital Corp, suggesting that the current valuation offers an attractive entry point for investors, with the company trading at just 0.6 times the 2025 Street Operating results.
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Terran Orbital Corp (LLAP) Company Description:
Tailwind Two Acquisition Corp is a blank check company.
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