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On Tuesday, Stifel analysts adjusted their outlook for Spire (NYSE:SR) Global (NYSE:SPIR) shares, lowering the price target to $18 from the previous $20, while still maintaining a Buy rating on the stock. The revision followed the company’s fourth-quarter earnings report, which surpassed expectations despite the company’s efforts to recover from various challenges encountered throughout 2024. According to InvestingPro data, analyst targets for SPIR range from $11 to $24, with the stock currently trading at $7.75. Recent data shows the stock has declined over 12% in the past week.
Spire Global’s fourth-quarter performance indicated a potential turnaround, as the company’s guidance for the first quarter suggests a gradual return to growth. Analysts at Stifel anticipate an acceleration in revenue in the latter half of 2025, projecting approximately 20% growth and improved gross margins into 2026. The company has demonstrated strong revenue growth of nearly 31% over the last twelve months, maintaining a gross margin of 34.78%. InvestingPro subscribers can access 12 additional key insights about SPIR’s financial health and growth prospects through the comprehensive Pro Research Report.
The ongoing sale of Spire’s Maritime business to Kpler remains a focal point, with both parties aiming to resolve regulatory hurdles and finalize the transaction by late April. Stifel analysts view the impending deal closure as a likely positive influence on Spire Global’s stock value.
Furthermore, Spire Global’s financial position has been reinforced through a recent private placement, which is expected to strengthen the company’s ability to compete for new opportunities and invest in the development of new products once the Maritime business sale is completed. The analysts believe that these strategic moves will place Spire Global in a more robust position for future growth.
In other recent news, Spire Global reported a 13% year-over-year increase in revenue for the full year 2024, totaling $110.5 million. Despite this growth, the company faces challenges with a lower-than-expected revenue forecast for the first quarter of 2025, projecting between $22.0 million and $24.0 million, which represents a significant year-over-year decline. Additionally, Spire Global’s financial filings revealed concerns about its ability to continue as a going concern due to an incomplete audit, leading to a reassessment of its disclosure controls. Analyst Erik Rasmussen noted that while the Q4 results were ahead of expectations, the company’s maritime business sale, expected to close by the end of April, could positively impact the stock. Spire Global also highlighted improvements in its non-GAAP operating loss and adjusted EBITDA, with respective improvements of 21% and 36%. The company continues to focus on operational efficiency, with CEO Theresa Condor emphasizing growth driven by AI-driven weather models and space reconnaissance solutions. Furthermore, Spire Global is pursuing a dual-track process to finalize the sale of its maritime business, which has been a focus for the company as it seeks to bolster its cash position.
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