“We think MAXR has a gem business in earth intelligence and a turnaround opportunity in space infrastructure,” Goldman analyst Noah Poponak wrote in a commentary.
The company’s valuation is attractive, too, he said. “MAXR trades on a 14% 2023 estimated free-cash-flow yield, despite what we see as great long-term opportunity in the space market.”
Maxar recently traded at $39.19, up 9%. The shares have moved up 28% in the past month. The price target indicates 45% potential upside from the Tuesday closing price.
The shares touched a 52-week high $58.75 in mid-January.
“Maxar is the world leader in high resolution earth imagery,” Poponak said. “This is a high margin, recurring business that has compounded cash flows for years.
"Earth observation data and analytics are increasingly prioritized by government and commercial customers.”
As for space infrastructure, “That market has now stabilized, with stronger orders in 2020 and a wave of replacement demand coming up,” he said. “Further, MAXR is diversifying into civil and defense end markets, which would … drive meaningful top-line growth.”
In other space news, earlier this month Amazon (AMZN) - Get Free Report Founder Jeff Bezos said he would travel into space on the maiden flight of his Blue Origin rocket company later this summer. He will take along his brother Mark and the winner of a $28 million charity auction.
Also earlier in June, Virgin Galactic (SPCE) - Get Free Report, founded and partly owned by the U.K. entrepreneur Richard Branson, said it would fly an astronaut into space -- Kellie Gerardi, a researcher for the International Institute for Astronautical Sciences.