The Space Investor - 🚀 $LLAP SPAC Was a "Dumb Idea"

Market Max-Q

Top Stories

• $BA - Defense, Space & Security
  • Revenue: $5.5B, +3% YoY
  • Oper Loss: $(924)M vs. $(2.8)B
  • Oper Margin: (16.9)% vs. (52.7)%
  • Backlog: $58B
  • Shares: -2.5%
     
• $GD - Aerospace
  • Revenue: $2.0B, -13% YoY
  • Oper Earnings: $268M, -14% YoY
  • Oper Margin: 13.2% vs. 13.3%
  • Total Backlog: $20B
  • Shares: +4.0%
     
• $NOC - Space Systems
  • Sales: $3.5B, +11% YoY
  • Oper Income: $312M, +8% YoY
  • Oper Margin: 8.9% vs. 9.2%
  • Shares: -1.1%

• The Wall Street firm initiated coverage on the company with an "Overweight" rating and a price target of $6.00 per share. Shares traded +4.7% on the news.
   
  • "We believe RKLB benefits from a proven and successful launch track record, a diversified and recurring customer base, and multiple launch complexes with vertical integration."
     
• The analysts noted that RKLB benefits from a bilateral treaty between the US and New Zealand governments that permitting US launches and spacecraft technology launches in New Zealand.
   
• The firm is bullish that RKLB's “proven and successful launch track record is an important differentiator in the industry, and we expect the company to continue to benefit from frequent launches.”

• Terran shares have been under pressure since de-SPAC and two weeks ago, an investor group sent a letter to the Board pushing for a 'strategic review and management change'.
   
• Terran responded last week and announced a virtual town hall to address its investors on Thursday ahead of earnings on Nov 14 (and to calm marketplace fears).
   
• Highlights include: 
  • Lowering 2023 revenue guidance >$250M following payment delays from Rivada
  • Rivada’s funding comes from a “large sovereign that has not yet publicly announced their support for the project”
  • Rivada has only paid Terran $5M to date, expecting $180M this year
  • Rivada "isn't the only elephant we're hunting"
  • Working to broaden its customer base domestically and globally
  • "Sufficiently funded to reach positive EBITDA and free cash-flow positive in 2024 without an additional offering"
  • Will enter into a six-month period to regain compliance with NYSE price rules
  • Expects no reverse split to maintain listing - "counting on investor faith"
  • Noted that the SPAC was a “dumb idea” and CEO would never do it again

In Other News

Chart of the Week

Links

Opinion

Earnings Calendar