The stock of Firefly Aerospace (FLY) is down 20% after one of its rockets exploded during a test flight.
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The space technology provider said that its Alpha Flight 7 rocket exploded during testing, shaking investor confidence in the company and its stock. “Proper safety protocols were followed, and all personnel are safe,” said the company in a written statement.
While the explosion has sent FLY stock crashing back to Earth, such mishaps are common among space technology companies. Privately held SpaceX, the company run by Elon Musk, recently experienced an explosion of one of its massive Starship rockets during testing.
Greater Uncertainty
While exploding rockets are common, the latest incident creates greater uncertainty for Firefly Aerospace, wrote Jefferies Financial Group (JEF) in a note to clients. Jefferies, a Wall Street investment bank, added that future rocket tests and space flights are now likely to be delayed.
Firefly aims to be an end-to-end space solutions provider, offering launch, lunar landing, and orbital technologies. Its Blue Ghost lander successfully operated on the moon this past March. The company went public in August of this year at a price of $45 per share. Since then, the stock has fallen to under $30.
Is FLY Stock a Buy?
The stock of Firefly Aerospace has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on four Buy and two Hold recommendations issued in the last three months. The average FLY price target of $57.67 implies 97.43% upside from current levels.
