After Spire Global (SPIR), Thales (TCSFY) and European Satellite Services Provider announced that they have signed a Memorandum of Cooperation, or MOC, with the goal of introducing a range of global satellite-based surveillance services to the air traffic management industry and broader aviation market, Stifel analyst Erik Rasmussen said the firm believes this has the potential to be a “meaningful win for Spire to be partnered with leading A&D companies.” Given the magnitude of this announcement, the firm sees the total value of this contract to be “potentially in the several hundred million dollar range over a roughly 4-5 year period,” with the potential for a refresh of the constellation as these satellites become obsolete creating a “continuous revenue stream for Spire.” The firm has a Buy rating and $20 price target on Spire shares.
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