Cantor Fitzgerald initiates Firefly Aerospace stock with Overweight rating

Published 02/09/2025, 12:00
Cantor Fitzgerald initiates Firefly Aerospace stock with Overweight rating

Investing.com - Cantor Fitzgerald initiated coverage on Firefly Aerospace Inc (NYSE:FLY) with an Overweight rating and a $65.00 price target on Tuesday. The stock, currently trading at $45.37, sits near its 52-week low of $44.00, with a market capitalization of $6.5 billion. According to InvestingPro analysis, the stock appears overvalued at current levels.

The research firm expects FLY shares to outperform as the company achieves significant growth catalysts across all its end markets, particularly in its launch business where Alpha and Eclipse rockets are anticipated to demonstrate faster cadence, better pricing, and expanded mission capabilities. The company’s revenue growth forecast for FY2025 stands at 7%, with current revenue at $108.3 million.

Cantor Fitzgerald believes Firefly’s satellite business opportunities, including Blue Ghost and Elytra, will accelerate due to NASA’s fixed-price requirements and favorable intelligence budget trends.

In the near term, the firm expects investor sentiment to follow the development and scaling of Firefly’s launch portfolio, landers, and national security opportunities in hypersonics and intelligence sectors.

Longer-term performance will likely be determined by cash generation capabilities, with Cantor noting that while space has historically been capital-intensive, demand tailwinds could enable healthy cash trends in launch operations, while Firefly’s strong cash position could support higher-margin acquisitions over time.

In other recent news, Firefly Aerospace has announced the pricing of its upsized initial public offering at $45 per share, offering a total of 19,296,000 shares of common stock. The company is set to begin trading on the Nasdaq Global Market under the ticker symbol "FLY." This IPO marks a significant step for the company as it moves forward in the public market.

In addition to the IPO, several major investment firms have initiated coverage on Firefly Aerospace stock. Jefferies has given the stock a Buy rating with a $60 price target, highlighting the successful launch of Alpha in 2022. Meanwhile, JPMorgan has initiated coverage with an Overweight rating and a $55 price target, projecting 2027 sales of $787 million. Goldman Sachs has provided a Neutral rating with a $54 price target, noting Firefly’s unique offerings in a supply-constrained industry. Morgan Stanley has also initiated coverage with an Equalweight rating and a $52 price target, based on projected 2027 sales of $756 million. These recent developments indicate growing interest and varying perspectives from major financial institutions on Firefly Aerospace’s future performance.

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