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On Tuesday, Stifel analysts maintained a Buy rating and a $17.00 price target on Spire (NYSE:SR) Global stock (NYSE: SPIR), representing a significant upside from the current price of $10.61. According to InvestingPro data, analyst targets range from $13 to $17, with a strong consensus recommendation of 1.4. The reaffirmation follows the participation of Spire Global’s CEO, Theresa Condor, and CFO, Ali Engel, in the Stifel 2025 Cross Sector 1x1 Conference.
During the conference, discussions focused on Spire Global’s historical challenges, including revenue recognition and liquidity issues, as well as the sale of its Maritime division. InvestingPro data shows the company faces ongoing challenges with a current ratio of 0.67 and revenue of $99.5M, with analysts forecasting a slight sales decline this year. The company’s management emphasized that Spire Global is now back on a normal sales trajectory and is regaining lost momentum.
The company highlighted an improved business environment, both in U.S. and international government budgets, which they believe will benefit Spire Global. Management expressed optimism about several significant opportunities that could drive substantial revenue growth, mentioning partnerships and contracts with Thales (EPA:TCFP), EURIALO, the U.S. Space Force, and NOAA.
Spire Global is also addressing recent cost-cutting measures and streamlining operations to aim for profitability, with a target of achieving positive operating cash flow in the second half of 2025. The company expects margins to continue improving, benefiting from a broad and growing range of opportunities.
In other recent news, Spire Global has reported first-quarter results that exceeded expectations in both revenue and adjusted EBITDA. The company has successfully completed the sale of its Maritime business to Kpler for approximately $241 million, which has allowed Spire Global to eliminate its debt and strengthen its balance sheet. Stifel analysts have adjusted their price target for Spire Global to $17 while maintaining a Buy rating, citing the company’s potential for revenue acceleration and improved margins in the latter half of the year. Additionally, Canaccord Genuity raised its price target to $16 and reaffirmed a Buy rating, noting the reduced risk following the divestiture of the Maritime assets.
Spire Global has also secured a position on the U.S. Space Force’s Space Systems Command’s IDIQ contract, valued at up to $237 million over a decade. This contract is part of the Space Test Experiments Platform (STEP) 2.0 program, which facilitates the rapid deployment and testing of new space technologies. The company’s strategic focus now includes leveraging proceeds from the Maritime sale for potential strategic acquisitions to bolster its core business units.
Analysts from both Stifel and Canaccord Genuity highlight Spire Global’s strategic decisions as positive catalysts for the company’s future growth. The sale to Kpler is seen as a pivotal move that allows Spire Global to concentrate on expanding its Space Reconnaissance segment and pursuing additional contracts. These developments underscore Spire Global’s efforts to streamline its operations and focus on its strengths in the competitive space data market.
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