Sep. 17 at 8:05 PM
Bank of America upgraded HawkEye 360 to Buy from Neutral on Thursday, while cutting its price target to
$23 from
$34. Analyst Ronald Epstein said the stock looks attractive after a broad selloff in space and defense shares, citing solid underlying growth.
HawkEye’s second-quarter revenue rose 87%, while its
$292 million backlog provides visibility toward its 2026 targets. International revenue increased 134% year over year to about 42% of sales, driven by sovereign customers and new contracts, including a multiyear maritime-surveillance agreement involving India and regional partners.
Epstein also highlighted the company’s expanding satellite constellation, with Clusters 15 and 16 scheduled for launch in the second half of the year and lower-cost Block 3 satellites potentially launching in early 2027. He viewed weaker U.S. revenue as mainly a timing issue related to government funding delays, with contracts from the NRO, Space Force and NASA providing potential support.
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