Canaccord bullish on Terran Orbital following ‘massive order’

Canaccord analyst Austin Moeller notes that Terran Orbital has announced that it received a $2.4B contract to build 300 smallsat buses for Rivada Space Networks. The "massive order" includes 288 active LEO comsats and 12 orbital spares with a mass of about 500 kg, the firm notes. Canaccord also believes the contract is also "particularly notable" in that it is the largest smallsat production contract ever awarded and is comparable in size to the entire Space Force SDA annual budget. It is very likely that Terran’s successful delivery of the ten SDA Transport Layer Tranche 0 satellites on time in 2022 played a major role in the company’s selection by Rivada, the firm adds. Overall, Cannacord argues the "huge" satellite production contract further substantiates its view that industrial-scale production of smallsats will be in high demand over the next decade. The firm has a Buy rating on the shares with a price target of $15.