Jefferies resumes York Space Systems stock coverage with buy rating

Jefferies resumes York Space Systems stock coverage with buy rating

Gold off session lows as US-Iran conflict boosts safe-haven demand Investing.com - Jefferies resumed coverage on York Space Systems (NYSE:YSS) with a Buy rating and a price target of $32.00 following the company’s recent acquisition. The stock currently trades at $19.89, down 41% over the past six months, and InvestingPro analysis suggests the company is undervalued with a Fair Value of $26.01. York Space Systems completed the acquisition of ALL.SPACE on July 8 for total consideration of $300 million, consisting of 5.9 million shares and $155 million in cash.

The acquisition adds advanced satellite communications terminals and multi-network connectivity solutions to York’s existing space infrastructure capabilities. Jefferies estimates the ALL.SPACE acquisition will add approximately $20 million in annual revenues, representing 3-4% of the firm’s 2026 estimate of $565 million for York. The firm forecasts second-quarter revenues of $90.4 million and adjusted EBITDA of negative $3.0 million, with full-year 2026 estimates of $565.4 million in revenues and $48.7 million in adjusted EBITDA.

York Space Systems’ fiscal 2026 revenue guidance of $545 million to $595 million is supported by more than 70% of revenue tied to existing backlog. Management expects to compete for new contracts worth roughly 30% of fiscal 2026 revenue in the second half of the year. While InvestingPro Tips indicate analysts don’t expect profitability this year, the platform offers 11 additional exclusive tips for deeper investment analysis.

The company recently launched M-CLASS, won a $187 million commercial constellation award for more than 20 satellites, received a June U.S. government national-security contract, and has been awarded a total of 136 Space Development Agency satellites. In other recent news, York Space Systems announced the completion of initial objectives for its Dragoon mission, showcasing successful two-way tactical data transmission via UHF from low Earth orbit. The company conducted five demonstrations over three months, including downlink and uplink tests, to meet the mission exit criteria.

Additionally, York Space Systems secured a contract with a new U.S. government customer for a national security mission, though the specific details and value of the contract remain undisclosed due to its controlled nature. Furthermore, York Space Systems completed the acquisition of Solestial, Inc. for approximately $67 million. This transaction was finalized through a mix of cash and stock, involving the issuance of 1,703,577 York shares.

These developments follow a broader trend in the space sector, where stocks, including York Space Systems, have been positively influenced by SpaceX’s recent IPO filing. York Space Systems saw a notable 7% increase, reflecting the overall enthusiasm in the market.