Will Maxar Technologies (MAXR) create millionaires? Throughout history there have been countless events that has created millionaires and billionaires.
Whether it was oil, cryptocurrency, technology, out of the money FD options that expire in two days. Tons of things have created massive wealth out of no where. Well the next frontier where the wealth will be made will be space. Elon Musk, Jeff Bezos, Sir Robert Branson all are moving towards the commercialization of space. NASA and other government organizations are also working to expand in space. And we did just create a US Space Force.
Now the real question is… where do I put my money in highly leveraged options to capitalize off this space race to commercialization so I can blow my money on a couple of those virgin galactic flights while doing hookers and blow?
For this company that is around a 2 billion dollar market cap profitable (Barely profitable but still profitable) it is doing all sorts of things for all sorts of customers whether it is NASA, Sirius XM, or the Goldman Sachs commodity traders who need satellite images of the oil being shipped out of ports so they know how to place their bets for oil demand that month.
What do they do?
They are a Leader in Earth Intelligence and Space Infrastructure. They operates under these two key segments —both of which have performed incredibly well of late. Multifaceted capabilities across geospatial data and analytics, satellites, space robotics and space infrastructure (In autist language it just means they do a ton of stuff in space including building satellites, providing imagery of the planet, space robotic arms, space hardware and software. They are the amazon of space in terms of selections, you call them if you need something that is out of this planet).
They have Long-standing relationships with government and commercial customers globally. Strong alignment with U.S. government, international defense, civil government and commercial customers. (Here is a link to an investor presentation they made.) They are also the #1 leader in global imagery sales which are extremely valuable for many reasons.
Back in late June, Maxar announced the delivery of 3D data products to the Australian Department of Defense under a multi-million dollar contract. They have multiple contracts that will go on for extended time periods and are making more. They were also recently award a contract to build another satellite for Sirius XM which they have been working with since the year 2000. They are expecting revenues to accelerate in a big way once the company’s planned “WorldView Legion satellite constellation” begins to come online. It even recently secured a $35 million contract involving this constellation. The contract will enable Maxar’s customer to download 30 cm-class satellite imagery directly. The stock took a huge hit after delaying the launch of this next generation satellites back in the beginning of August and is expecting to launch in March and June of 2021 next year. It even recently secured a $35 million contract involving this constellation. The contract will enable Maxar’s customer to download 30 cm-class satellite imagery directly.
But the main point is with earnings in November, and the launch that will boost revenues and display the highest new tech in March, there is probably going to be a strong run up on stock price as long as nothing goes wrong with the launches. Throw in the fact that space is becoming more mainstream and more focus in the media as it becomes more and more realistic that humans are going to be the ones in spaceships not aliens.
Wall street has a current average price target of $44.14 with 7 buy ratings and 7 holds. Morgan Stanley has a 50$ price target, and even from a fundamental view it appears many think the company is undervalued, aside from the fact that it is perfect for high volatility meme fun status and is a cutting edge software, space tech company.
Space is the future and this company is going to continue to grow and be in demand. So you know what this means.
This article was written by u/Amurphy747.