In a report released today, Scott Buck from H.C. Wainwright reiterated a Buy rating on BlackSky Technology, with a price target of $28.00.
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Scott Buck has given his Buy rating due to a combination of factors including the anticipated revenue growth driven by BlackSky Technology’s deployment of Gen-3 satellites. These satellites are expected to enhance the company’s capabilities with improved imagery and AI analytics, which should unlock additional revenue from their existing backlog. Furthermore, the current geopolitical tensions and increased defense spending, particularly from NATO countries, are seen as catalysts for new business opportunities.
The company’s financial outlook is promising, with projected revenue growth and significant improvements in adjusted EBITDA over the next two years. The expectation of higher gross margins and modest operating expense growth is likely to result in substantial operating leverage. Consequently, Scott Buck has increased the price target for BlackSky Technology’s shares to $28, reflecting confidence in the company’s growth trajectory and its ability to achieve profitability by 2024.
In another report released on June 26, Canaccord Genuity also maintained a Buy rating on the stock with a $20.00 price target.