Opinions
John Zechner
Maxar Technologies
MAXR-T
PAST TOP PICK
May 02, 2018
$56.300
Stock price when the opinion was issued
computer software
processing
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
TOP PICK
Strong demand is one of the catalysts. Restructuring story. New management. Good progress on balance sheet. Uptick in satellite orders. Free cashflow should be positive going forward. Good multiple. Earth imaging for government. Yield is 0.14%. (Analysts’ price target is $33.30)
computer software
processing
PAST TOP PICK
(A Top Pick Oct 18/19, Up 275%) He kept picking away it and still owns it. A few years ago, this stood at $80, but fell to $10 when they a great deal to buy DigitalGlobe which increased the company's value though levered the balance sheet. MAXR does satellite imaging and analytics for defence and many other industries. It has a 10x operating cash flow, so it's still not expensive. This could hit $100.
computer software
processing
HOLD
This was $80 a few years ago, then an acquisition of Digital Globe (made a lot of sense) made investors worry about the balance sheet, but that's improving as they pay down debt. The DG deal married DG's orbital satellites with Maxar's existing software to analyze that data from outer space, which is important to military defence and urban planning. MAXR has had a huge dip this year, but he's holding on. Is trading at only 8x operating cash flow.
computer software
processing
HOLD
He continues to hold but took a little money of the table because of a substantial move. It is space exploration plays. Their cap X spending will come down in the coming year. He thinks it is positioned right and is not extended. We need space data for so many uses. There is a growing use for it. For the longer term he thinks you should stay with it.
computer software
processing
BUY ON WEAKNESS
The space sector is promising. Still owns this and bought more with the weakness. With digital globe acquisition, they have married the space area well. Low level orbit satellite structure is promising. There are companies that need their data. Best positioned to combine data and put it in a good format. The valuation is still good. You are seeing SPACs flowing money into the area.
computer software
processing
(A Past Top Pick on Oct. 6, 2017, Down 20%) Merged with DigitalGlobe, thus marrying hard satellites with software and data. There's great demand from industries like agriculture and defence to provide satellite imagery. The street is disappointed that they continue to spend instead of paying down debt, which pressures the stock. A great long-term story. Only 1.2x book value.