Jefferies began coverage of newly-public space company Redwire with a buy rating on Tuesday, calling for the stock to climb 50%. "Redwire offers a diversified portfolio of space components that are well-positioned to capture emerging trends around a growing number of small sat launches and expansion into deep space exploration, as well as battle-tested products that provide a solid revenue base," Jefferies analyst Greg Konrad wrote in a note to investors. Shares of Redwire ticked up about 0.2% on Tuesday from its previous close of $9.99. Jefferies has a $15 price target on the stock, as well as upside and downside scenario price targets of $27 and $5, respectively. Redwire is a space infrastructure conglomerate that debuted on the NYSE earlier this month , after closing a merger with a special purpose acquisition company, raising as much as $170 million in cash. The company was formed in 2020 by private equity firm AE Industrial Partners, before going on an acquisition spree that saw it integrate seven smaller space companies into one. "Redwire has assembled a unique portfolio of space products, including spacecraft design, highly engineered components, and next-gen technology around in-space manufacturing positioned for the new space economy," Konrad said. The company expects to bring in $153 million in revenue this year, which Jefferies said is set "to expand at a 60%" compound annual growth rate over the next four years. "In addition, we view in-space manufacturing (Made In Space) as driving option value, with future applications tied to expanding human space travel and the ability to build and deploy things in space, with Redwire having first-mover advantage," Konrad added. – CNBC's Michael Bloom contributed to this report.
Pete Cannito, Redwire Corporation at the New York Stock Exchange, September 8, 2021.
Jefferies began coverage of newly-public space company Redwire with a buy rating on Tuesday, calling for the stock to climb 50%.