UrtheCast Gets a Buy Rating from Canaccord Genuity

By Jason Carr

Yesterday, an analyst has provided a rating update for the Materials sector company, UrtheCast (TSX: UR). Analyst Doug Taylor from Canaccord Genuity rated UrtheCast (TSX: UR) a Buy, setting a C$2 price target.

Taylor wrote:

“UrtheCast’s Q3 results were materially below expectations due to the delay in renewing a large contract with a long-term customer. While this is still expected to close in the next few months, a lower and still wide annual guidance range suggests uncertainty to the timing. The quarterly results are disappointing, however much of the value of UrtheCast is tied to the upside potential of the satellite constellations. On that front, the company is making significant progress on the UrtheDaily program commitments and financing and expects to finalize these before year-end ahead of construction next year. There is upside related to this project and XL-Sat builds but clearly there remain significant risks related to timing and execution. As a result, we keep a SPECULATIVE BUY rating and are reducing our target to C$2.00 (from C$3.00) reflecting reduced value for existing EO and OptiSAR programs.”

According to TipRanks.com, Taylor is ranked #392 out of 4706 analysts.

UrtheCast has an analyst consensus of Moderate Buy, with a price target consensus of C$2.

UrtheCast’s market cap is currently C$124.5M and has a P/E ratio of 0.

UrtheCast Corp. provides high-definition videos of planet earth. The company operates four Earth observation sensors in space, including two cameras aboard the International Space Station and two satellites, Deimos-1 and Deimos-2. It is also developing and anticipates launching fully-integrated constellation of multispectral optical and SAR satellites.

The company’s shares closed on Tuesday at C$1.03.