York Space Systems initiated with a Hold at Truist

Truist analyst Michael Ciarmoli initiated coverage of York Space Systems (YSS) with a Hold rating and $30 price target While the firm views York as “a differentiated, low-cost A&D satellite prime contractor with a compelling business model,” and believes its operating model has the potential to produce 30%-plus gross margins and 20%-plus EBITDA margins at maturity, in the near-term it needs to see York secure more awards, preferably from a customer other than the SDA, to drive backlog growth, the analyst tells investors.