U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
On Tuesday, Benchmark raised the price target for BlackSky Technology Inc. (NYSE:BKSY) to $18.00, up from the previous $17.00, while maintaining a "Buy" rating for the company’s shares. According to InvestingPro data, the stock currently trades at $11.72, with analysts’ targets ranging from $14 to $26, suggesting significant upside potential. The increase comes on the heels of BlackSky’s notable achievements in the first quarter of the fiscal year 2025, including a significant contract win rate, the successful deployment of its GEN-3 satellite, and the growing interest of international intelligence agencies in satellite assets. With a market capitalization of $364 million and impressive gross profit margins of 69%, BlackSky demonstrates strong operational efficiency. Discover more insights with InvestingPro, which offers 15+ additional tips and comprehensive analysis for BKSY.
Benchmark’s analyst pointed out BlackSky’s first GEN-3 satellite is already delivering high-quality imagery, comparable to the top industry standard of NIIRS-6, but at a fraction of the cost of traditional ISR satellites. This cost-effectiveness is expected to be a key driver in the company’s growth, as it plans to increase the launch cadence of GEN-3 satellites, which should lead to higher margin backlogs compared to GEN-2 satellites.
The company’s backlog, which is a key indicator of future revenue, grew by 50% year-over-year in the quarter. This growth is a testament to the rising demand for BlackSky’s geospatial intelligence offerings. InvestingPro data shows analysts expect 29% revenue growth for fiscal year 2025, with the company maintaining a healthy current ratio of 3.79, indicating strong liquidity to support its growth initiatives. The analyst believes that this trend will not only continue but also accelerate, enhancing the company’s backlog conversion rates.
BlackSky’s continued success in securing contracts and advancing satellite technology has positioned it favorably in the eyes of Benchmark. The firm’s increased price target reflects confidence in BlackSky’s trajectory and its potential to capitalize on the expanding market for satellite-based geospatial intelligence.
In other recent news, BlackSky Technology Inc. reported a significant 22% increase in revenue for the first quarter of 2025, totaling $29.5 million. Despite an adjusted EBITDA loss of $600,000, the company maintained its full-year revenue guidance, projecting between $125 million and $142 million. Additionally, BlackSky secured $130 million in new contracts and renewals, demonstrating robust demand for its space-based intelligence solutions. The company is advancing its satellite technology with plans to expand its constellation to 12 satellites by early 2026. Meanwhile, BlackSky has signed early access agreements with multiple international defense sector customers for its Gen-3 satellite imagery, enhancing mission capabilities. These developments reflect confidence in BlackSky’s offerings, with potential for continued growth as the company scales its Gen-3 satellite capacity.
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