Canaccord lifts Spire Global stock target to $24, keeps Buy rating

On Monday, Canaccord Genuity maintained a Buy rating on Spire (NYSE:SR) Global (NYSE:SPIR) and increased the price target to $24 from the previous $18. With the stock currently trading at $20.15 and showing strong momentum with an 88% return over the past year, the firm’s analyst, Austin Moeller, expressed confidence in the company’s future, citing recent contract wins and strategic business moves as the foundation for this optimistic outlook. According to InvestingPro data, the company has demonstrated impressive stock performance, with significant returns across multiple timeframes.

Spire Global, known for its data-driven space services, has recently reported $40 million in new bookings during the third quarter of 2024, which stands as the company’s record high. With a robust revenue growth of 24.15% and impressive gross profit margins of 58.39%, this achievement, according to Canaccord Genuity, signals strong customer confidence and is a positive reflection of Spire’s market position.

In addition to the robust bookings, Spire Global has also completed the sale of its Maritime business, previously known as exactEarth. The transaction, which was finalized at 5.8 times the business’s revenues, is seen by Canaccord Genuity as a testament to the value of Spire’s high-margin, Software-as-a-Service (SaaS) oriented space operations.

The revised price target of $24 is based on an updated enterprise value-to-revenue (EV/Revenue) multiple of 2.6 times. This new multiple is applied to Canaccord Genuity’s adjusted 2025 revenue estimate for Spire Global, which now stands at $136 million.

Investors are currently awaiting Spire’s restated financials for the past two years, a requirement set by the NYSE with a deadline of February 19, 2025. Despite this pending financial clarification, Canaccord Genuity’s stance remains firmly positive on the company’s stock. InvestingPro analysis reveals that Spire maintains a healthy liquidity position with a current ratio of 2.24, while operating with a moderate debt level. For deeper insights into Spire’s financial health and additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Spire Global has been making significant strides in its operations and financial performance. The company recently secured a Can$72 million contract from the Canadian Space Agency to develop a satellite constellation for monitoring wildfires, a move that has sparked investor optimism. This development is in collaboration with OroraTech, and the satellites will be equipped with payloads from OroraTech that have previously contributed to wildfire detection and management.

Simultaneously, Spire Global has decided to sell its maritime business to Kpler for approximately $241 million. The sale proceeds will be used to pay off debt and invest in the expansion of its data analytics and radio frequency geolocation solutions.

On the financial front, Canaccord Genuity has maintained a Buy rating on Spire Global and increased the price target to $18, citing robust new contract bookings and strong demand for the company’s services. Similarly, Craig-Hallum has upgraded the company’s stock from Hold to Buy and increased the price target to $20.00, following the announcement of the maritime business sale.

These are major developments for Spire Global, indicating a positive trajectory for the company’s growth and financial health.

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