Stifel views Lockheed’s Terran Orbital bid value as low

Stifel analyst Erik Rasmussen notes that Lockheed Martin (LMT) announced after the close on Friday that it has submitted a non-binding proposal to acquire all of the common stock of Terran Orbital (LLAP) for $1.00 per share in cash, valuing the company at over $500M when also including $70M in outstanding stock warrants and with the assumption of $313M in debt. The firm, which is “not surprised” that Lockheed has submitted a proposal to acquire the company given their strategic partnership, sees this proposed offer as light when compared to the roughly $1.1B value ascribed to private competitor York and argues that if one were to assume similar metrics as the York deal, it can see Terran getting at least $4 per share, which drives an enterprise value of about $1.1B. Stifel has a Buy rating and $7 price target on Terran shares.