Satellite maker Terran Orbital stock soars following Jefferies buy rating

Apr. 20, 2022 12:07 PM ETLMT, LLAPBy: Val Kennedy, SA News Editor1 Comment

Satellite network over planet Earth

EvgeniyShkolenko/iStock via Getty Images

Terran Orbital (LLAP) stock soared for the second day in a row Wednesday after Jefferies initiated coverage of the small satellite developer and operator with a buy rating.

Shares of LLAP opened at $5.11 before hitting a high of $8 in mid-morning. The stock recently changed hands at $5.96, up 20%, at approximately 11:10 a.m. ET.

The stock closed 28% higher on Tuesday, reversing a downward slide that began shortly after LLAP’s merger with SPAC Tailwind Two on March 28.

Earlier Wednesday, Jefferies initiated coverage of LLAP with a buy rating and price target of $10.

“With backlog up nearly three times since year end and matching our 2023 revenue estimate, Terran Orbital is in a position to exceed our estimates,” the analysts wrote. “This is driven by the shift in space to small satellites, with Terran Orbital positioned to take advantage of the opportunities given its independent vertically integrated offering.”

Jefferies analysts added that the company’s deal with Lockheed (LMT) to develop and manufacture small satellites adds “credibility and stability for LLAP.”

LLAP went public on March 28, with shares reaching a 52-week high of $12.69 during its market debut. The stock began trending downward the next day and hit a 52-week low of $3.80 on April 13.

LLAP and Tailwind Two announced in October that they planned to merge through a deal that valued the combined company at $1.58B.

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