BlackSky Technology price target raised to $20 at Canaccord Genuity

Investing.com - Canaccord Genuity raised its price target on BlackSky Technology Inc. (NYSE:BKSY) to $20.00 from $14.00 on Wednesday, while maintaining a Buy rating on the satellite imagery company. The stock, currently trading at $17.70, has shown remarkable momentum with a 38% gain in the past week alone.

The research firm cited impressive performance from BlackSky’s first two Gen-3 satellites, which have demonstrated rapid delivery of imagery and AI analytics. Canaccord noted that the global defense environment is driving increased consumption of imagery volume by Department of Defense, Intelligence Community, and allied Ministries of Defense. The company maintains strong operational efficiency with an impressive 69% gross profit margin.

Canaccord Genuity raised its 2025 revenue estimate for BlackSky to $137 million and adjusted EBITDA estimate to $18.5 million. The new price target represents a 4.8x EV/Revenue multiple on the firm’s 2025 estimate, up from the previous 3.5x multiple.

The research firm expects BlackSky to receive priority in task orders from existing indefinite delivery/indefinite quantity contracts and new agreements, based on the initial performance of the Gen-3 satellite constellation.

Canaccord also anticipates favorable changes to commercial imagery spending in the fiscal year 2026 defense budget, which it believes warrants the higher valuation multiple for BlackSky shares. According to InvestingPro, analyst targets for BlackSky range from $14 to $26, with 15+ additional real-time insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, BlackSky Technology Inc. secured a significant $24 million contract from the National Geospatial-Intelligence Agency (NGA) for global monitoring services of military and economic facilities. This four-year agreement requires BlackSky to utilize AI-enabled object and pattern-of-life change detection across a vast area, enhancing the company’s real-time intelligence capabilities. The contract falls under the Luno A program, a larger five-year agreement worth up to $290 million. BlackSky is also advancing its satellite constellation, planning to launch new multispectral satellites by 2027 to support large-area mapping and other applications. These satellites, known as AROS, will offer high-resolution imagery and are part of BlackSky’s strategy to address market needs for affordable and AI-ready solutions. Additionally, BlackSky’s Gen-3 satellites have demonstrated their high-resolution imaging capabilities, capturing detailed images shortly after launch, which supports defense and intelligence missions. The company continues to expand its satellite fleet, with plans to deploy eight Gen-3 satellites by early 2026, enhancing its real-time monitoring services.

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