Baird downgrades Spire Global to Neutral on balance sheet risks

Baird analyst Jeffrey Meuler downgraded Spire Global to Neutral from Outperform with a price target of $9, down from $15. The company delayed its quarterly filing, noting space services revenue recognition questions and potential non-compliance with a financing agreement, the analyst tells investors in a research note. The firm says this follows a material reduction in the business outlook when Spire reported Q1. It believes the company’s “already material high” interest-rate debt with covenants “amplifies the related risk.” Baird thinks these overhangs could take time to resolve and possibly include a “meaningful setback” to the potential refinancing avenues Spire was previously pursuing.