In a report released yesterday, Austin Moeller from Canaccord Genuity maintained a Buy rating on Spire Global, with a price target of $12.00.
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Austin Moeller has given his Buy rating due to a combination of factors, despite some challenges faced by Spire Global. The company reported a notable increase in gross profit, driven by reduced satellite depreciation and personnel costs, which resulted in their best quarterly gross margin in ten quarters. This improvement in gross margin is a positive indicator of operational efficiency, even though the company experienced a decline in revenue and an increase in operating expenses.
Furthermore, Spire Global’s management remains optimistic about future growth, projecting a 20% increase in topline growth for FY26. Although the SEC subpoena presents a potential risk, the company’s proactive approach in addressing these issues and their substantial cash reserves provide a cushion for navigating these challenges. Moeller’s confidence in the company’s long-term prospects and its ability to overcome current hurdles underpins his Buy rating.
Moeller covers the Industrials sector, focusing on stocks such as AeroVironment, Bridger Aerospace Group Holdings, and Spire Global. According to TipRanks, Moeller has an average return of 7.9% and a 41.15% success rate on recommended stocks.
In another report released on November 5, Craig-Hallum also maintained a Buy rating on the stock with a $15.00 price target.