Craig-Hallum initiates BlackSky with a Hold, $2.50 price target

As previously reported, Craig-Hallum initiated coverage of BlackSky with a Hold rating and $2.50 price target. Strong revenue growth has validated BlackSky’s position among market leaders, the firm notes. Imagery revenue has grown 296%, 188%, and about 200% the past three years, with imagery revenue now composing about 70% of revenues. Demand is very high and the company has sold out capacity over key geographies almost as soon as the birds hit the air. But shares plummeted on early disappointments in results, due in part to the DoD pushing out a key multi-vendor contract, and in part to unrealistic initial SPAC targets, Craig-Hallum says. The firm believes another capital raise and/or cuts to the much-anticipated satellite launches are likely to get the company through.