BlackSky Technology Inc. (NYSE:BKSY) shares fell nearly 10% on Tuesday after Canaccord Genuity cut its price target on the stock.
What To Know: Canaccord Genuity analyst Austin Moeller maintained a Buy rating on BlackSky, but flagged reduced financial guidance and government budget uncertainty as key concerns. The analyst lowered his price target from $28 to $27.
Moeller said BlackSky reported preliminary second-quarter revenue of $22.2 million, down 11% year-over-year, mainly due to a sharp decline in its Professional and Engineering Services segment. The analyst noted that revenue delays from long-term contracts affected results, while imagery services grew slightly as customers awaited the full deployment of Gen-3 satellites expected by the fourth quarter.
BlackSky also cut its 2025 revenue guidance to $117.5 million at the midpoint and slashed its adjusted EBITDA forecast to $5 million, citing delays in U.S. government contract activity linked to budget uncertainty.
“Our $27PT is based on a 5.9x multiple on our revised 2026 revenue estimate of $165M, reflecting delays with the NRO/NGA contracting offices should the FY26 spending bill not be finished by October 1,” the analyst wrote in the note.
Moeller noted that Congress could reverse proposed cuts to defense imagery spending, pointing out that most of BlackSky's $366 million backlog is with international governments.
BKSY Price Action: BlackSky shares closed Tuesday down 9.85% at $20.13, according to Benzinga Pro.
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