Credit Suisse analyst Scott Deuschle downgraded Mynaric to Neutral from Outperform with a price target of $4, down from $9. His reduced rating primarily reflects increased liquidity risk. Specifically, the analyst forecasts Mynaric ending 2022 with EUR21M of cash, a 2023 cash burn of EUR59M, and a 2024 burn of EUR42.5M, before inflecting to positive free cash flow in 2025. His expectation for 2022 cash balance and 2023 burn suggest that liquidity risk is now quite high. Deuschle is "uncomfortable" with this risk, and is moving to the sidelines given the increasingly binary outcome for the stock.
Published first on TheFly
