Spire Global (SPIR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Austin Moeller from Canaccord Genuity maintained a Buy rating on the stock and has a $16.00 price target.
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Austin Moeller has given his Buy rating due to a combination of factors surrounding Spire Global’s recent strategic moves. The completion of the Maritime business sale to Kpler for $233.5 million, along with additional service payments, significantly strengthens Spire’s financial position by adding approximately $100 million in net cash. This transaction also alleviates investor concerns by resolving a dispute with L3Harris and extinguishing debt, thereby reducing financial risk.
Furthermore, Moeller views Spire Global as an execution story, with the company now poised to focus on achieving sustained positive EBITDA and free cash flow. The analyst is optimistic about Spire’s potential for organic growth, targeting a 20% increase by 2026, and sees opportunities for strategic acquisitions to bolster its core business. Additionally, expanding contracts within the Space Reconnaissance segment and potential projects with the EU further support the positive outlook. The price target of $16 is based on a 4.2x EV/Revenue multiple, reflecting Spire’s transition towards a SaaS business model.