Jefferies has opened coverage on York Space Systems (OTC:YORK), assigning a Buy rating and setting a price target of $37.00. The firm pointed to a combination of product economics, an established backlog and growth forecasts as the basis for its initial rating.
The stock, trading at $0.10, has registered notable recent momentum. According to InvestingPro Tips, York posted a high return over the last year and experienced a substantial price uptick during the past six months.
In its analysis, Jefferies emphasized York's low-cost satellite platform and the ability of that platform to support several national security missions - including data transfer and missile targeting - within what it describes as a $4 billion addressable market. The firm also cited a $660 million backlog as an indicator of early commercial traction, and said that backlog underpins the company’s initial success with an expectation that it will scale through 2026.
Jefferies laid out a multi-year financial trajectory for York. The firm projects revenue of more than $1 billion through 2028, a pace it quantified as roughly a 43% compound annual growth rate. On profitability, Jefferies expects EBITDA margins to exceed 20% over a three-year horizon, attributing margin improvement to serial production.
The $37.00 price target corresponds to approximately 4.8 times Jefferies' estimate of 2027 sales. The research note also points subscribers of InvestingPro to eight additional exclusive tips for YORK, which include further commentary and metrics on profitability and cash flow.
Below are the principal points underpinning Jefferies' initiation and the most salient uncertainties described in the firm’s view.
Context and scope: Jefferies framed York’s addressable market at $4 billion and identified national security missions such as data transfer and missile targeting as end uses for York’s satellite platform. The firm signaled confidence in scaling through an existing $660 million backlog and projected revenue growth to surpass $1 billion by 2028.
Financial outlook: The firm quantified growth as roughly 43% compound annual growth through 2028 and anticipated EBITDA margins above 20% within three years, driven by efficiencies from serial production. The price target of $37.00 equates to about 4.8 times estimated 2027 sales under Jefferies’ assumptions.
Market signals: Trading at $0.10, the stock has shown strong recent performance per InvestingPro Tips, including a substantial one-year return and a marked six-month uptick. Additional analysis and proprietary tips are available to InvestingPro subscribers, who can access eight extra items on YORK covering profitability and cash flow details.
This report presents Jefferies' initiation and the firm’s stated expectations without additional commentary or projection beyond the material the firm provided.