Canaccord Genuity has commenced coverage of BlackSky Technology Inc. (BKSY, Financial), assigning the company a Buy rating and setting a price target of $12. This positive outlook is based on BlackSky's position as a leader in the field of earth observation through its fleet of 13 commercial satellites.
The company's constellation is equipped with electro-optical and short-wave infrared capabilities, allowing for the collection of high-frequency imagery. BlackSky's satellites can capture images of crucial economic resources, military targets, industrial sites that may emit greenhouse gases, and areas struck by natural disasters up to 15 times a day. This capability supports a broad range of applications and industries.
Canaccord highlights BlackSky's robust business model, which combines vertical integration with a software-as-a-service (SaaS) approach. This model positions the company to potentially achieve over 30% sales growth, while also pushing gross margins to around 80% in the future. The firm's analysis suggests BlackSky is strategically positioned for significant financial growth in the coming years.
