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Investing.com - H.C. Wainwright raised its price target on BlackSky Technology Inc. (NYSE:BKSY) to $28.00 from $20.00 on Tuesday, while maintaining a Buy rating on the stock. The new target represents significant upside potential for the $679 million market cap company, which currently trades near its 52-week high of $21.92. According to InvestingPro data, the stock appears to be trading above its Fair Value.
The research firm cited BlackSky’s year-to-date share price increase of 100.7%, compared to a 0.7% decline in the Russell 2000 index. This outperformance has been attributed to expectations for increasing demand following the deployment of the company’s Gen-3 satellites and rising geopolitical tensions. InvestingPro data shows the stock has delivered even more impressive returns over the past year, with a 162.86% gain, though the RSI currently suggests overbought conditions.
H.C. Wainwright projects a significant acceleration in BlackSky’s revenue growth, forecasting 29.3% growth for 2025 compared to 8.0% in 2024. The firm noted that BlackSky’s Gen-3 satellites deliver improved imagery capabilities and AI software analytics, which should unlock additional revenue from the company’s current $366.0 million backlog.
The research firm also highlighted increasing macro uncertainty and geopolitical tensions as potential new business catalysts for BlackSky, including higher defense spending from NATO countries and new regional conflicts. With gross margins exceeding 70%, H.C. Wainwright expects revenue growth coupled with modest operating expense increases to drive significant operating leverage. InvestingPro analysis confirms the company’s strong gross profit margins at 69.27% and reveals a healthy current ratio of 3.79, indicating solid short-term liquidity. Subscribers can access 16 additional ProTips and a comprehensive Pro Research Report for deeper insights into BlackSky’s financial health.
BlackSky’s 2025 revenue guidance of between $125.0 million and $142.0 million supports H.C. Wainwright’s growth projections, with the firm forecasting adjusted EBITDA growth of 37.7% in 2025 and 122.1% in 2026. The firm expects positive news flow and stronger operating results in the second half of 2025 to drive further share outperformance. Recent analyst revisions have been positive, with two analysts raising their earnings estimates for the upcoming period.
In other recent news, BlackSky Technology Inc. announced a significant development with the National Geospatial-Intelligence Agency, securing a $24 million contract for facility operational monitoring services. This four-year agreement involves AI-enabled monitoring of military and economic facilities worldwide, with an initial award of $2 million. The contract is part of a larger $290 million multi-award agreement, demonstrating BlackSky’s ongoing collaboration with national security agencies. Additionally, BlackSky plans to expand its satellite constellation by 2027 with new multispectral satellites aimed at supporting large-area mapping and other applications. This expansion follows the successful launch of two Gen-3 satellites, which have already demonstrated rapid delivery of high-resolution imagery. Canaccord Genuity responded to these advancements by raising its price target for BlackSky to $20, citing the company’s impressive satellite performance and expected priority in defense contracts. The research firm also increased its 2025 revenue estimate for BlackSky to $137 million, highlighting the potential for favorable changes in commercial imagery spending. BlackSky continues to enhance its capabilities with AI-driven analytics, providing critical real-time insights for defense and intelligence missions.
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