Shares of Maxar Technologies (MAXR) - Get Report rocketed Tuesday after J.P. Morgan initiated coverage of the space contractor with an overweight rating.

Maxar shot up 18% to $8.28 after the vote of confidence by J.P. Morgan analysts, who see the space giant starting a major turnaround that could yield 70% upside by late 2020, according to published reports.

However, Maxar faces a crucial two-year window to push forward on its turnaround and reduce its debt load, the J.P. Morgan report said.

The contractor, which does everything from service satellites to design spacecraft propulsion systems, had more than $3 billion in debt as of June.

"We see Maxar as a high-risk/high-reward opportunity in the space industry," J.P. Morgan analyst Benjamin Arnstein said in a note, CNBC reports.

Maxar scored some big contract wins in the second quarter, landing a deal to build the power propulsion system for the Artemis mission, NASA's plan to return to the moon by 2024 and a "contract with [the Defense Department's] National Reconnaissance Office to assess Maxar's current and future capabilities," among others, said Dan Jablonsky, Maxar's president and CEO, in an Aug. 6 statement.

In the second quarter, the company swung to a profit of $2.45 a share from a loss of 70 cents in the year-earlier quarter, driven in large part by satellite-insurance payments.

Maxar revenue dropped 15% to $490 million in the quarter, due largely to a $73 million drop in space-systems work and an $11 million fall in the imagery unit.