Space Stock Maxar Q3 Results, Wall Street welcomes progress


Business News

A close look at the primary mirror of a Worldview Legion satellite during assembly and inspection.


Maxar Technologies shares rose Thursday after the third quarter results were released, with Wall Street analysts hailing the space company’s progress in launching key satellites next year.

The company reported adjusted EBITDA earnings of $ 113 million for the third quarter, above the $ 109.9 million analysts surveyed expected, while Maxar’s revenue was below forecast – at 437 Million US dollars versus 447.7 million US dollars expected.

Wall Street’s focus, however, is on Maxar’s advances in its WorldView Legion satellites.

A WorldView Legion satellite in the final assembly phase.


Legion is the company’s constellation of six image satellites and is critical to ensuring that the company continues to receive lucrative contracts from US defense and intelligence agencies. Maxar announced in August a delay in the launch of the first two Legion satellites, which the company will target between March and June 2022 – a schedule the company reiterated in its latest report.

Baird has upgraded Maxar’s rating from neutral to outperformance, with a price target of $ 39, up 44% from the stock’s most recent closing price.

“The outlook has been greatly diminished given the visibility of Legion’s first launch, and current prices provide a safer entry point,” Baird analyst Peter Arment wrote in a statement to customers.

Maxar’s shares rose nearly 18% in trading from their previous closing price of $ 27.05.

Baird said his previous neutral assessment was “largely out of caution about possible” further Legion delays, but “line of sight to initial launches is now much clearer”.

JPMorgan analyst Seth Seifman, who has an overweight rating and a price target of $ 47, also emphasized that the launch of Legion is “the most important event” for Maxar.

“We see a clear path to operational improvement with strong cash flow generation in 2023, mainly driven by the launch of Maxars WorldView Legion,” Seifman wrote to clients.

Source Link

Leave a Reply