Seth Seifman, an analyst from J.P. Morgan, has initiated a new Buy rating on Firefly Aerospace, Inc. (FLY).
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Seth Seifman has given his Buy rating due to a combination of factors that highlight Firefly Aerospace’s potential in the growing space market. The company is positioned as one of the few U.S.-based small and medium-lift launch providers, with its Alpha rocket being the only U.S.-built orbital rocket in its class to successfully reach orbit. Firefly is also developing a medium-size rocket, Eclipse, in collaboration with Northrop, which is expected to significantly enhance its launch capabilities.
Additionally, Firefly’s spacecraft division shows promising opportunities, particularly with its Blue Ghost lunar lander and the Elytra spacecraft, which has potential for military applications. The company’s sales base, although currently small, is projected to grow substantially, with expectations of generating cash by 2026 and adjusted EBITDA by 2027. Seifman’s price target of $55 is based on a 10.5x multiple of the 2027 sales estimate, which is competitive compared to similar companies, indicating a strong growth outlook for Firefly Aerospace.
According to TipRanks, Seifman is a 5-star analyst with an average return of 14.9% and a 70.85% success rate. Seifman covers the Industrials sector, focusing on stocks such as Boeing, Kratos Defense, and Voyager Technologies, Inc. Class A.
In another report released yesterday, Jefferies also initiated coverage with a Buy rating on the stock with a $60.00 price target.