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Maxar inventory drops after delaying launch of WorldView Legion satellite

Close-up image of ongoing dredging work around Ever Given on the Suez Canal, captured by the company’s WorldView-3 satellite on Saturday, March 27, 2021.

Maxar Technologies

Space company Maxar Technologies Shares fell in a transaction on Thursday after announcing that the launch of the next-generation image satellite would be further delayed.

“We have decided to postpone the launch from the fourth quarter of 2021 to next year,” McDonald’s CEO Dan Jabronski said in a statement on Wednesday.

Maxar’s share price fell 15% from its previous closing price of $ 34 per share. Inventories have risen in recent months Goldman Sachs When Morgan Stanley Each one gives a buy rating, but the hits per share in January are well below the highs of over $ 50.

WorldView Legion, the company’s six group of imagery satellites, is the key to continuing to win favorable contracts from US defense and intelligence agencies. However, the launch of the first Legion has been postponed many times, and McDonald’s is now targeting a “March-June time frame,” Jabronski said.

After the announcement, Canaccord Genuity downgraded Maxar’s rating to suspend purchases, emphasizing that delays cast doubt on the company’s long-term financial goals.

In a note to investors, Canaccord Genuity analyst Austin Moeller said, “The Legion Constellation is likely to be completely non-functional with significant uptime by 2023.” The company has set a stock price target of $ 40, up from its previous target of $ 50.

Jabronski said the first two satellite equipment came “later than expected” from supplier Raytheon, and Covid’s pandemic continues to be a “difficult operating environment for both our suppliers and us.” He mentioned that there are two main causes of delay.

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Maxar inventory drops after delaying launch of WorldView Legion satellite

Source link Maxar inventory drops after delaying launch of WorldView Legion satellite

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