Voyager's IPO Rocketed, But Here's Why Investors Should Brace For Impact

Michael Del Monte
4.93K Followers
(11min)

Summary

  • I rate Voyager Technologies (VOYG) a SELL with a $33.49 price target due to an unsustainable 16.25x price/sales multiple post-IPO.
  • Despite strong defense and space contract potential, current revenue growth is sluggish and margins remain negative, with profitability years away.
  • Voyager's long-term prospects hinge on projects like Starlab and potentially the Golden Dome initiative, relying on appropriate funding to execute on.
  • Compared to peers, VOYG trades at a significant premium; my DCF analysis suggests shares are overvalued even with optimistic long-term assumptions.

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Voyager Technologies (NYSE:VOYG) had a splashy IPO with shares appreciating by 82% on their first trading day. This follows an upsized IPO, entering the market at $31/share with a 12.3mm share issuance, raising $383mm. Despite the initial excitement in the

This article was written by

4.93K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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