Austin Moeller, an analyst from Canaccord Genuity, maintained the Buy rating on Spire Global (SPIR – Research Report). The associated price target was lowered to $20.00.
Austin Moeller has given his Buy rating due to a combination of factors including Spire Global’s proactive measures to mitigate challenges and the company’s potential for recovery post the adverse impacts of solar activity. Despite the fact that Q1/24 revenue was slightly below expectations and the company faced a temporary setback due to solar flare activity affecting their LEMUR satellites, Spire Global has already implemented software updates to improve data quality. Furthermore, the company’s ability to become free cash flow positive in the near future instills confidence in its financial health and operational efficiency.
Moreover, Moeller’s optimism is bolstered by Spire Global’s strategic actions, such as opening a new ground station and taking corrective measures with its propulsion system vendor, which are expected to enhance overall performance and reliability. The management’s intentions to possibly acquire a propulsion subsidiary align with efforts to improve vertical integration, indicating a forward-looking approach to overcoming current obstacles. With the effects of the solar cycle being a decadal event, the company’s focus on software and potential hardware improvements provides a solid basis for the Buy rating and the adjusted price target, which is supported by a reasonable EV/Revenue multiple applied to future revenue estimates.
According to TipRanks, Moeller is an analyst with an average return of -1.6% and a 40.95% success rate. Moeller covers the Industrials sector, focusing on stocks such as Intuitive Machines, Lilium, and Spire Global.
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Spire Global (SPIR) Company Description:
NavSight Holdings Inc is a blank check company.
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