Bull of the Day: Maxar Technologies (MAXR)

This story originally appeared on Zacks

Maxar Technologies MAXR is a $2.2 billion provider of space technology including satellite imagery and expert intelligence services. Along with spacecraft and robots for space exploration, research and national security, Maxar helps customers better understand and navigate an evolving planet, deliver global broadband communications, and engage our largest frontier yet with the right infrastructure.
Remarkably, the company is trading at less than 1.2 times sales and is expected to grow 5.5% to $1.87 billion this year.
Maxar has two divisions – Earth Intelligence and Space Infrastructure – both of which operate in the Earth observation and satellite manufacturing markets.
Earth Intelligence (representing 60.1% of total revenue in the third quarter of 2021): Maxar is a global leader in high-resolution satellite Earth observation imagery products and analytics. It launched the world’s first commercial high-resolution imaging satellite in 1999 and currently operates a constellation of four satellites. This segment provides image solutions that provide critical information about a changing planet and support a range of government and commercial applications. Maxar’s main clients in this segment are US and international federal agencies (mainly defense and intelligence wings), as well as commercial clients in multiple markets. It also provides geospatial services that combine imagery, analytics expertise, and innovative technology to deliver intelligent solutions to clients.
Space Infrastructure (39.9% of revenue): In this segment, Maxar builds and tests solutions for satellite communications, Earth observation, in-orbit service, automated assembly, and space exploration. It is partnering with the United States government on new space opportunities that leverage its high-performance spacecraft systems. Its main clients in this sector are commercial satellite operators and government agencies around the world. Maxar has built and launched more than 285 spacecraft with a total of 2,750 years of service in orbit. She has over 30 years of experience in space robotics, having developed all five robotic arms on the Mars lander and rover. It has 90 satellites in geosynchronous equatorial orbit (GEO) and 26 satellites in low Earth orbit (LEO) currently in service.
Innovation in the news
In late December, Maxar Technologies announced that it had extended its agreements with three defense customers. The company announced the extension of contracts with three long-running international defense and intelligence clients. Totaling more than $100 million, the three agreements expand the ability of these customers to direct missions and download 30cm class satellite imagery to their ground stations from the existing Maxar constellation under the Maxar Direct Access Program.
This program enables defense, intelligence, and commercial customers to access the world’s most advanced Earth imaging satellites, with encrypted downlinks, committed availability, and data distribution rights that fit mission needs. One contract provides a commitment to purchase direct access to Maxar’s next generation of WorldView Legion satellites, the first of which is expected to launch between May 15 and June 13, 2022. This is the company’s second commitment to WorldView Legion capacity.
Also in December, Maxar was selected by the US Department of Defense’s Defense Innovation Unit (DIU) to produce robotic arms to serve satellites and other spacecraft in orbit.
Analyst Interactions
On December 13th, Goldman Sachs chose Maxar as one of the best options with a 75% increase in shares.
But on December 20, Maxar Technologies saw its price target drop to $32 from $40 at Canaccord Genuity. Analyst Austin Mueller noted that Maxar issued a press release indicating that it had a launch window with SpaceX for its first two Legion EO satellites, but also noted that the first two satellites are still in the testing phase, with hardware performance, software and environmental testing. Testing is still in progress.
This opinion may have kept a lid on the stock’s recent advance.
Among other positive views, upgraded analyst Peter Armant L3Harris Technologies LHX excels in the performance of Neutral with a target price of non-variable of $ 248, referring to his rival defense contractors to other key, describing it as the best choice for the year 2022 in space. Analyst, who pointed out that most of the assessments defensive stocks had been set with the arrival of budgets to peak, sees good value for some stocks in space and highlighted Maxar Technologies (MAXR) as the current one best choice to him and Fresh Pick for 2022.
Eyes all over the planet
Maxar appears to be an affordable way to play the space industry. I recently bought it for my Zacks TAZR Trader wallet.
In addition to helping scientists monitor extreme weather conditions and wildfires, Maxar also has eyes on geopolitical maps like Ukraine that allow for greater access to information. The company was recently mentioned in an article in the Wall Street Journal titled “Russian military buildup near Ukraine is an open secret” because “satellite images, social media posts, and flight-tracking data allow private analysts to track the details that governments have been categorizing once they have been classified.”
Thanks to Maxar’s Sky Eyes, the more we know, the better.

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