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Spacecraft-Design Firm Redwire Stock Higher; Initiated Buy at Jefferies

'Redwire offers a diversified portfolio of space components that are well-positioned to capture emerging trends,' Jefferies says.

Redwire  (RDW) - Get REDWIRE CORP Report shares rose on Tuesday, a down day for the market, after the spacecraft-design company received an initial buy rating and $15 price target from Jefferies.

The Jacksonville, Fla., company went public in a SPAC merger earlier month. It makes spacecraft components, does spacecraft design and develops spacecraft technology.

“Redwire offers a diversified portfolio of space components that are well-positioned to capture emerging trends around a growing number of small satellite launches and expansion into deep space exploration, as well as battle-tested products that provide a solid revenue base,” Jefferies analyst Greg Konrad wrote in a commentary cited by CNBC.

“Redwire has assembled a unique portfolio of space products, including spacecraft design, highly engineered components, and next-gen technology around in-space manufacturing positioned for the new space economy.”

The stock recently traded at $10.07, up 0.8%. The stock on Tuesday has traded up as much as 4.5% at $10.44.

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“We view in-space manufacturing (Made In Space) as driving option value, with future applications tied to expanding human space travel and the ability to build and deploy things in space, with Redwire having first-mover advantage,” Konrad said.

Redwire estimates it will generate $153 million of revenue this year.

And Konrad said that’s likely to “expand at a 60%” compounded annual growth rate over the next four years.

After formation in 2020 by the Boca Raton, Fla., private equity firm AE Industrial Partners, Redwire gobbled up seven smaller space companies.

SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.

In other space news this month, Virgin Galactic  (SPCE) - Get Virgin Galactic Report postponed its first commercial research mission in collaboration with the Italian Air Force until at least mid-October because of a potential manufacturing defect.